It is never too early to enter the property game. As the property market, especially Auckland’s, continues to get more competitive and expensive, it is never too early to start looking at your options.
As a young person looking to step onto the property ladder, it can be easy to get sidetracked or discouraged. However, there are plenty of avenues, tips and tricks that can see you buying your first property faster than you thought!
You’ll need every penny
It’s the elephant in the room, so it must be addressed: in order to enter the property market, you’re going to need cash to spend.
Saving for a home deposit is the biggest hurdle for any prospective buyer, let alone a young person. With all the obvious necessities such as studies and living expenses, and other options, such as travel and social activities, it can be hard to find the money to save.
However, it can be done and ultimately it shouldn’t deter you from at least starting the saving process. Consider your options, such as staying at home while you’re working or studying, or consider cutting back on the non-essentials.
It may be hard to start the saving process, but the important thing is, to remember what you are saving for and to set goals.
There is help out there!
As a young professional looking to buy property, don’t forget your KiwiSaver or other schemes.
It may have been the last thing you thought about when you started a job but consider maximising your KiwiSaver contributions. It may not seem like much but increasing your contribution from 3% to 8% will do wonders in the long run. Also, don’t forget, what you contribute, your employer also contributes.
Additionally, you may also be eligible for the KiwiSaver HomeStart grant. Which entitles you to up to $10,000 for individuals or $20,000 for couples to help with your deposit.
There are also a number of other governmental grants available that are designed to help first home buyers. So make sure you investigate all the options available and consider talking to a friendly and experienced adviser here at The Mortgage Supply.
As you start to build your savings nest egg, the next step is to start looking around at what is available and reasonable.
For young, first home buyers, it’s wise to look at options outside of the traditional four-bedroom, two-bathroom house. Instead, also include apartments, units, new-builds or terraces in your search.
It’s key to remember, your first houses won’t necessarily be your forever house, so you don’t have to knock it out of the park first-time. Instead, your first property is ideal for building up equity that you can later use to purchase your dream home.
Keep your eyes peeled
As a young buyer, you can’t afford to be snobby. You need to keep your options open and consider everything. So be prepared to buy into neighbours that aren’t extremely popular at the time or DIY dreams.
If you do your due diligence and take the time, you will find opportunities and hidden gems around every corner. Consider areas that are along main transport routes or areas that are planned for development.
Remember even Ponsonby was undesirable at one point in time, you never know where the next trendy or ‘it’ suburb will pop up.
Do your research
One of the best things you can do is to simply keep your finger on the pulse and eyes on the prize!
Stay up-to-date with the housing market by reading suburb and market reports, start a conversation with real estate agents or even swing by an auction or two to see how the market is playing.
Ultimately, entering the property market is a long game, so don’t get swayed or rushed by sensationalist news reports and gossip. The best thing you can do is to stay patient and prepared.
As young professionals, time is on your side, so don’t panic. At the end of the day, there will need to be some sacrifices made in the short term but remember your goals.
The best thing you can do is seek advice from a trusted professional. Go see a real estate agent or seek help from a trusted mortgage adviser. At The Mortgage Supply Company, we pride ourselves on helping first-time home buyers enter the property market. So if you would like to investigate your options and get the ball rolling, contact us today!
CONTACT COLIN TODAY
027 643 5454