• Sarah O'Gorman

5 Tips To Help You Afford Your First Home

Buying a house is one of life’s milestones. It is also one of the biggest investments you will make in your life. The process may seem daunting and it’s normal to feel overwhelmed, however, there are some ways you can better set yourself up for success. We’ve compiled five tips to help you on your way when purchasing your first home.

1. Learn How To Manage Your Money Effectively

Managing your finances is an essential life skill that will help you purchase your first home. Buying a house is a large investment and requires putting down a hefty deposit. Take stock of your monthly income and expenses and figure out a saving plan that works for you. This will not only give you an idea of how much you can realistically save but also how long it will take you to reach your goal.

2. Take Advantage Of Grants And Home Buying Plans

Have you spoken to your bank about how they can help you purchase your first home? There are several schemes in place that can help you invest your income in your future home. KiwiSaver allows you to automatically put part of your income towards buying a house. It may be worth contacting your provider and find out how much you have in your account and how long it will be before you can use your funds towards purchasing a home.

3. Speak To A Mortgage Advisor

In some cases, you may find that your bank doesn’t have a lending plan that meets your needs. This is why it is important to speak to a mortgage advisor. They will be able to help you find a bank that suits your needs, meaning you may be able to afford the deposit and mortgage on your first home sooner than you thought.

4. Be Realistic

Odds are, you won’t be buying a mansion the first time you buy a house. It’s important to be realistic about the type of home you can afford and not rule out properties that may need a little work. Fixer uppers, while daunting, can be a great investment and may serve you with a healthy return when it comes time to sell. In any case, you should view your first home as an important step on your way to owning your dream home. Make sure you account for interest rate increases when calculating your mortgage rate and remember to buy within your means.

5. Do Your Research

Once you know you can afford a property, it’s important to make sure that house is worth investing in. Many first-time buyers fall short when it comes to doing their due diligence which can leave them high and dry later on. Don’t sacrifice on inspections – these could save you a lot of money down the line.

Talk To The Professionals

Buying your first home? We are here to help. Talk to Me, for expert advice on the real estate industry and purchasing your first home.

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