One of the first challenges of getting onto the property market as a first-time buyer is saving for a deposit. But then what?
Prospective homeowners, especially the first-time buyer wanting to get onto the New Zealand property ladder, are finding creative solutions to save money and get on the housing market faster. Here are a six strategies to consider to help you get ahead.
1. Buy your first home with a friend
Team up with a friend, relative or partner. Saving for a deposit will be halved and will it also reduce your costs associated with the property transaction.
2. Find a new area
Another strategy is to look at new areas. Focusing your property search further out of town may allow you to get more value for your money. Which means less deposit and less time needed to save!
An Auckland couple who did just this said “they might be viewed as trendsetters, moving out of an increasingly expensive city to a rural area, to work remotely” On The ladder Series stuff.co.nz . Being savvy about your decisions could pay off financially and also give you a better quality of lifestyle.
3. Embark on a do-up project
A do-up project requires commitment, however finding the right property that needs tender loving care is a first-time buyer’s ticket to get on the property ladder. “We bought a do-up and committed to a dusty two years” on the Ladder Series Stuff.co.nz .
Lowering expectations will allow you to be visionary and see the potential in a property.
4. Finance options
Research different mortgage options to find the best deals and the right solution for you. Non-bank lenders can help find mortgage solutions and depending on your situation, could offer up to 90% finance. Talk to a professional about your finance options and get cash management advice.
Bellamy’s Home Loans provide impartial cash & debt management advice, with mortgage solutions especially for the first-time buyer wanting to get onto the property ladder.
5. Parents as a guarantor
Parents are increasingly becoming involved to help first-time buyers onto the property market. Helping children start saving early and see the value of owning your first property at a young age will give them a head start.
Twenty-one-year-old Manawatu property owner worked and saved through university “I have really smart parents who put me on KiwiSaver at a very young age, and I was able to get a $5000 KiwiSaver HomeStart Grant. And my parents were my guarantors” On the Ladder series stuff.co.nz.
Parents are helping by using the equity in the family home as a loan to help fund the deposit for their children’s first home.
6. Creative ways to pay off your mortgage
Would you rent out your home for six months of the year, so that you could get on the property ladder in your perfect area?
Getting creative is the key. So for two years Jake and Ella lived half with her family, then for the other half had the St Heliers house to themselves, saving all the while” On the ladder series stuff.co.nz.
Having a long-term vision that goes beyond the short-term inconvenience will aid getting you ahead. Saving for a deposit isn’t easy, swapping a take out lunch with a packed lunch is only the start. Finding alternative strategies will help encourage and motivate you to save the deposit you need jump on the property ladder.
Bellamy’s Everything property Contact today to start a conversation about your property needs
Have you ‘liked’ our @Bellamysnz facebook page yet? Stay up to date with the latest hot properties and industry news.