Buying your first home is an exciting and significant milestone in your life. It is a decision that requires a lot of thought, research, and preparation. As a first-time home buyer, there are many things to consider, such as budget, location, and size. In this blog, we will explore considerations to make before you buy your first home, as well as highlight considerations for those looking to purchase a rental property.

First-Time Homebuyer

As a first-time homebuyer, there are a few key things to consider before taking the plunge into homeownership.

1. Determine your budget: One of the most critical steps in buying a home is to determine your budget. You will need to consider not only the purchase price of the home but also property taxes and any ongoing maintenance costs.
2. Get pre-approved for a mortgage: Before you start looking at homes, it’s a good idea to get pre-approved for a mortgage. This will give you a better idea of how much you can afford to spend and will help you narrow down your search.
3. Find a real estate agent: A good real estate agent can help you navigate the complex process of buying a home. They can provide you with valuable information about the local housing market and can help you find homes that meet your needs and budget.
4. Don’t rush the process: Buying a home is a significant decision, so it’s important not to rush the process. Take your time to find the right home for you, and don’t be afraid to walk away from a property if it doesn’t meet your needs.

First-Time Homebuyer Checklist

To help you stay organized throughout the home-buying process, we’ve put together a checklist of things to consider before making an offer on a home:

1. Determine your budget and get pre-approved for a mortgage.
2. Discuss your situation as well as your goals and preferences with a real estate agent.
3. View properties that meet your needs.
4. Make an offer on a home and discuss the terms of the sale with a property lawyer.
5. Receive frequent updates knowing who to speak to and when.
6. Settle on the home and move in!

First-Time Homebuyer Deposit and Mortgage

When it comes to buying your first home, the deposit and mortgage are two critical factors to consider.

1. How much deposit do you need? The amount of deposit you need will depend on several factors, including the purchase price of the home and your lender’s requirements. In New Zealand, many first home buyers are eligible for the Kainga Ora First Home Loan and Kainga Ora First Home Grant which can provide assistance for a deposit on a new home.
2. What type of mortgage should you choose? There are several different types of mortgages available. It’s essential to choose the right type of mortgage for your needs, considering your budget and long-term goals.

Rental Property Buyer

If you’re considering buying a rental property, there are a few key considerations to keep in mind:

1. Location is key: The location of your rental property will play a significant role in its success. Discuss areas with your real estate agent.
2. Crunch the numbers: Before you buy a rental property, it’s important to crunch numbers to ensure that it will be a profitable investment. Consider the purchase price, ongoing maintenance cost, and potential rental income.
3. Consider a property manager: If you’re not interested in managing your rental property yourself, consider hiring a property manager. They can help you find tenants, collect rent, and handle maintenance issues.

Final Thoughts

Buying a home for the first time or purchasing a rental property can be an exciting and rewarding experience. It’s important to take into consideration all factors mentioned above before taking the plunge into homeownership. Still not sure where to begin? Contact us today to get the ball rolling and take one step closer to homeownership.

Disclaimer: The information provided in this article is for general guidance only and does not constitute legal or technical advice. Before making any financial decisions, it is important to seek unbiased professional advice tailored to your specific circumstances. The eligibility criteria and terms of conditions for the First Home Grant and First Home Loan are current at the time of writing this article and may be subject to change. Images provided in this article are artist impressions only and are currently available for purchase at time of writing this blog post.