Are you feeling like homeownership is out of reach?
The truth is, you might be closer than you think!
For many, the hardest part is knowing where to start. Once you do, the uncertainty of the journey can feel overwhelming, chip at your confidence and keep you on the sidelines.
Whether your first home is on the radar now, next year or five years from now, as a mortgage adviser these are the five key steps I walk through with clients to get clear on what’s possible – and what steps you can start taking today.
1 – Get Honest With Your Budget And Know Your Numbers
Start by figuring out how much is coming in and where it’s all going. Understanding your income and expenses gives you a clear view of your cash flow, and helps us determine what you can realistically afford in mortgage repayments in future, but also maximise your savings now.
There are great free online tools to make this easier, take a look at the Sorted Budgeting Planner.
2 – How Is Your Account Conduct?
Banks and lenders look closely at your day to day account activity. Things like unnarranged overdrafts, missed payments or bounced Automatic Payments and direct debits can raise flags.
We want to ensure your bills and savings run like clockwork. Lenders need to see that you are managing your current obligations now so they can trust you to manage a mortgage in the future.
3 – Start Building Your Deposit
You don’t need $100k sitting in your savings to start planning. Even small, consistent contributions to your savings or KiwiSaver will snowball overtime. Set realistic goals, automate them and stay consistent.
4 – Check Your KiwiSaver Is Working For You
For most Kiwi’s your KiwiSaver plays a huge role in building your deposit. Make sure you’re in the right fund for your goals and timeline.
“The difference between a well-suited KiwiSaver fund and a poor one can be thousands of dollars” Johan Bruijn – KiwiSaver Adviser at The Wealth Supply Co
Not sure you’re in the right fund? I work closely with Johan from The Wealth Supply Co. Reach out and we can review your fund and contributions to ensure this suits your goals and timeline.
5 – Review Your Timeline And Set The Goal
Let’s reverse engineer your goal. When are you hoping to buy? Now? In 12 months? 2 Years?
I often start with asking “Show me your TradeMe search?”. Your price range sets the target, we then build a plan to get there and close any gaps along the way. You might need to adjust your spending, or explore ways to increase your savings and income.
Finance is often the biggest hurdle to getting onto the property ladder and it’s never too early to start the conversation. If homeownership is something you’d love to achieve but aren’t sure where to start, lets chat! I’ll help you get a plan in place so you feel confident, informed and in control of your journey.
