Buying a house is not something you should do on a whim. It takes careful planning, saving, and research. For first home buyers especially, it’s important to look at all of your options and speak with experts before embarking on a mortgage that will take years to pay off. Here are a few tips for first home buyers.
Have A Plan
Preparing for a new home means having a plan in place. If you are purchasing with a partner, communicate about the commitment and be honest about what you are looking for and can afford. Focus on your income and what you are comfortable paying out. And think about what you would do if your income changed.
Boost Your Savings
When it comes to deposits, bigger is better. The more you can put down now, the lower your interest will be in the long run. Boosting your savings by reducing all of your financial wants to just financial needs, enrolling in a Kiwisaver plan and sticking to a budget can help you feel more in control of your finances. Even after you’ve moved into your new home and are paying off your mortgage, keep saving so you can manage unforeseen events like changes in income or interest rates.
Talk to Experts
As much as your parents might want to give you advice, you should consider expert’s advice when it comes to what options are currently available, what the best rates you can get are, and when is the time to buy.
Get on the Ladder
The house you are looking to buy now should be a step on the property rung ladder. Instead of waiting to buy a house until your dream home comes along, your first house should be one you can afford and that you build yourself up from. You may be going through a couple of different properties over the years until you own the house you want to retire in.
Don’t start by finding your dream house and seeing if you can afford it – calculate how much you think you can reasonably afford each month and then go looking for what is out there.