Tips for buying your first home
Buying your first home can be one the biggest events of your life.
With so many things to take into consideration, we’ve compiled a few tips below to guide you through the process of buying your first home.
Start planning early, make the most of KiwiSaver, and know what you are working with before you purchase your first home.
Start planning early for your first home
Buying your first home is going to be a long process - it really doesn’t happen overnight.
There are many things to take into consideration from both a financial and non-financial perspective, so start planning early and make the right decisions - such as getting the most out of KiwiSaver.
Make the most of KiwiSaver: prepare for a deposit
Over 100,000 people have used KiwiSaver funds for their first home deposit.
Joining KiwiSaver early on and keeping track of fund performance can really help you with your first home purchase.
Be sure to compare KiwiSaver fund performance regularly to ensure you are on a fund which will help you meet your goals. Make sure you also check out our article for getting the most out of KiwiSaver.
Know what your dream home is
If you were asked what your dream home is, would you be able to clearly describe it? Is it one or two-storey? How many bedrooms and bathrooms does it have, and where is the ideal location?
These are just some of the details you should be clear about, and will inform your buying decisions to ensure you don’t overestimate your budget.
Understand your budget
Speaking of budget, know what you can afford and are willing to pay.
There are many costs associated with purchasing your home, including your initial deposit, monthly payments, lawyer fees, and moving costs.
Planning is the key to success, so try to be optimistic and realistic at the same time.
Learn about auctions
Auctions can be a scary and exciting time when it comes to purchasing a house.
Sealing the deal and avoiding an auction is optimal, but there are times where you will have to attend an auction.
Prepare yourself beforehand by going to an auction and seeing what it’s all about – this means you won’t feel pressured to either make a hasty decision or feel too nervous to bid if you should.
Compromise and look for other opportunities
There are thousands of people who are in the same shoes as you.
They may have very similar requirements for their dream home, which means you could be competing against them.
In some situations, you have may have to compromise on your ideal property and look for the gems where you can improve and renovate to create your dream home.
Know things don’t always go to plan
Buying your first home can be a bit of a rollercoaster experience. For some people, it may be a smooth ride, and for others ,it could be a total nightmare.
The housing market in New Zealand is a bit frantic, with demand exceeding supply and house prices skyrocketing.
There’s the potential for a lot to go wrong or not according to plan - just know that some things won’t go exactly as you might imagine them without proper planning and setting your expectations.
If you’d like to know more about KiwiSaver, glimp offers a free KiwiSaver Comparison tool to help New Zealanders compare funds and providers – visit the glimp website today!