CAN I OR SHOULD I BUY A PROPERTY
Can I buy, should I buy a property to get on the Property Ladder?
Can I buy and should I buy a property to get in the property market? Yes, you can, but you shouldn’t without getting the right advice first.
What do I need to know about getting into the property and investment market?
Where do I start, and who are the right people to speak to, about getting started.
For most people, it can all seem a bit overwhelming. Most people experience a good dose of FOMO. Fear of Missing Out.
How much deposit do we need, will I be able to use my Kiwi Saver. How do we get our Kiwi Saver out to use as a deposit. Will we get the total amount in the account? These are questions that I get asked on a regular basis.
This is where getting a good property coach/ good property mentor becomes a valuable person to have putting a great team of experience professionals together to take you through the journey to property ownership.
How does a property mentor help me? Your property mentor/coach is an experienced New Zealand Property Investor themselves. They have years of experience, know how to navigate through the journey, and will put everything into clear language that you can understand. Most people have heard of LVR’s, know that from time to time the amount the Bank requires as a deposit changes. You might have started watching the current interest rates that the banks have on offer. However, that can still leave you feeling more confused.
Your Property Mentor and Coach will put all of this together for you, in an individual way, so that you know, how much you can afford for your next property purchase, and put it all into a clear, concise easy to understand, process. You need to know how much you can afford to borrow and how much the mortgage repayments be?
There are many other things to take into consideration too like;
Getting a mortgage on a first home or investment property
Your first mortgage, or home loan, will probably be the biggest financial commitment you will ever make.
It’s a good idea to be just as careful when choosing a mortgage. Over time, repayments could add up to a lot more than the cost of the home. There are many types of mortgages, each with its own interest rate, fees and degree of flexibility. All these things affect how much the loan costs and when it will be paid off.
The deposit is just one of the costs that you will have when you buy your first home or investment property
Will you need to set money aside for things like:
- Moving services or truck hire
- Connection fees for phone, electicity and Internet
- Advertising or a Property Manager
- Legal expenses and builder’s reports
Mortgage repayments aren’t the only thing you’ll need to budget for in your new life as a homeowner. Make sure to include Insurance, Rates and other ongoing costs in the calculations.
House, Contents and Mortgage Insurance
Your home will be your biggest commitment when you have a mortgage and your biggest asset once it is paid off, so you need to protect it from the unexpected.
As well as house and contents insurance, you may need to look at life insurance and mortgage repayment insurance. Remember that Lenders Mortgage Insurance does not cover you, it covers the bank in the event you default on the loan.
When you buy your first home you become a ratepayer.
Rates are charges set by local councils to cover the cost of things like roads, water supply, sewerage and parks. They can be up to thousands of dollars a year.
Body corporate fees
If buying an apartment or townhouse that’s part of an accommodation complex and has ‘unit title’, you will need to pay ‘body corporate’ fees. These cover things like insurance and maintenance of shared areas.
Get a lawyer to go over these details carefully. Is there a fund for major maintenance work in place?
As your Property Mentor/coach we ensure all these areas are covered for you.
If you want to get onto The Property Ladder, you know you need the right advise before you make probably your biggest purchase, get the right advice. Reach out and get in touch.