Often first home buyers will think they are not ready to be buying a house or are told that they are not ready.
That may be true, but maybe not.
If you are looking at buying your first home you may find that you have been told the same … that you are not ready.
It’s All About The Money
Of course buying your first home is all about being in a good financial position.
This give you the confidence that you can afford the mortgage repayments, but more importantly it gives the bank or non-bank lender the confidence that you can afford to pay the mortgage both now and in the future, and even when things may get a bit hard.
The three key hurdles for many first home buyers are;
- Not Enough For A Deposit – this is one of the hardest things especially in the more expensive cities and towns, but there are things that can be done to help save a bigger deposit or to work with the lenders to ensure they will give you a mortgage with a lower deposit.
- Too Many Debts – this is quite a common problem in New Zealand. Of course there are plenty of finance companies willing to let you borrow money to buy “stuff” and while it seems so easy when you are cruising along in life, it all of a sudden becomes a problem when you want to buy your first home and therefore need a large mortgage. Again, this is a problem but there are ways to consolidate the debts to make them more manageable, or plans that can focus the repayments to get those debts paid off more quickly.
- Not Enough Income – of course this seems like the hardest to overcome, but again with some effort there are ways to increase your income. Most Kiwis will just accept the income they are on, but more Kiwis are now looking at the options to earn more money and many are pleasantly surprised how easy it is to earn a few more dollars each week.
Your chances of winning Lotto are not great, so instead of relying on that you should consider your realistic options to put yourself into a better financial position for bith buying your first home and then more importantly paying it off.