You’re ready to invest in YOUR FIRST property if:
Don’t be too daunted about saving that deposit. While you do require money in the bank saved and ready to access, you may be surprised as to how much you actually need. In New Zealand, there are a range of options to help including:
- First Home Grant: The First Home Grant is available from the New Zealand Government for first home buyers to help with putting together a deposit for their first home.
- First Home Loan: A First Home Loan is designed for first home buyers who can afford to make regular repayments on a home loan, but have trouble saving for a deposit.
- KiwiSaver first-home withdrawal: The KiwiSaver first-home withdrawal allows you to withdraw your savings from your KiwiSaver scheme to put towards the purchase of a home.
- Kāinga Ora First Home Partner: Kāinga Ora can provide financial support towards the purchase of a home.
- Kāinga Whenua: Lending for housing on multiple-owned Māori Land.
Click for Free PDF resource that summaries these options for assistance for First Home Buyers click
Despite what the media may suggest; now really is a good time to be buying a property. The nature of being in the housing market is that it is a long term game. This is an asset that will see out the flux in the interest rates and over a long term period will grow in value. So whilst interest rates are high at the moment, they will not stay this way, the market runs on a cycle.
You can be assured also that if you buy a home now, you can afford interest rates at their highest. This can provide confidence that when they improve and decrease, you will have more money freed to yourself.
If you are living in a property rather than jetsetting regularly, owning your place of living is always the best option. If you are renting your current place of living then you are, each time you pay rent, not gaining anything financially. Rather, if you own a home and are paying mortgage repayments, a percentage of the money you gain each week, you gain – in a percentage of the home.
If owning a home is something that you require, then buying your first home is something to put on your radar. You may have personal reasons for needing a home e.g. If you are wanting to relocate from your city place of living, if your current rental home agreement is lapsing, if you require additional rooms in your home etc.
You’re ready to invest in ANOTHER property:
If you have enough saved, and have the amount of funds available to form the 40% deposit towards another property, there shouldn’t be barriers to do so. You can get an additional home loan on this new property and add to your portfolio.
You may also look to invest in another property not for personal reasons: i.e. requiring additional space or wanting to relocate.
But it is also common to invest in another property to capitilise on the market conditions. With interest rates high currently, house prices are dropping. This excludes some from the market who cannot enter when interest rates are high, in turn bringing affordable options to the market. You can add a property to your portfolio effectively at a discounted price.
Given you have an existing property or properties, you may be wanting to utilise this and sell it timed well with the market. This can then mean you have free capital that you can put towards the deposit of a new property; one that suits your needs at the current time.
Managing a portfolio of multiple properties is a guaranteed way to earn wealth. If you buy multiple properties and tenant them, you can then cover the mortgage repayments and earn the capital gains on the property. Ultimately, this leads you to be able to have more disposable income to enjoy.
We would love to chat more!
Have questions regarding how much you can borrow, how much deposit you need, property management , how to access grants etc.?
Our team of Client Consultants would love to help you learn what you need to consider and help get you started on your property journey – or adding to your portfolio!
We can help you understand your current options and give inside property industry tips and tricks!