Looking to buy your first home? There’s never been a better time to dive in.
Interest rates are dropping and there’s plenty of housing stock to choose from.
Along with government backed programs like the First Home Loan Scheme, now is the perfect time to get serious about getting on the property ladder.
In this week’s update, I will walk you through 𝟯 𝗥𝗲𝗮𝘀𝗼𝗻𝘀 why now is the perfect time for first home buyers to enter the property market and make your homeownership dreams a reality.
1. You’re in the Buyer’s Seat.
Over recent months, there has been a noticeable rise in the number of properties available on the market.
This uptick in supply provides buyers with more options, allowing you to find a home that truly meets your needs and preferences.
More supply can also lead to more competitive pricing, as sellers are willing to negotiate to close a deal.
This is particularly beneficial for first home buyers who might be working within a tighter budget.
Additionally, the variety of properties available means you have a better chance of finding a home in your desired location and within your price range.
With more choices at your disposal, the process of finding your dream home becomes less stressful and more promising.
2. First Home Loan Scheme.
The First Home Loan Scheme is a government-backed initiative designed to help individuals and families with low to moderate incomes secure a mortgage with a lower deposit requirement.
Under this scheme, you can qualify for a home loan with a deposit as low as 5%.
Borrowers need to have income as a single person of $95,000 or less, and $150,000 as a couple or buyer with dependents.
This makes homeownership more attainable for those who might otherwise struggle to meet traditional lending criteria.
By reducing the initial financial barriers, the First Home Loan Scheme plays an important role in making homeownership a realistic goal for many first home buyers in New Zealand.
3. Long-Term Financial Benefits – Building Equity Over Time.
One of the significant long-term financial benefits of homeownership is the opportunity to build equity over time.
When you pay your mortgage, a portion of each payment goes towards reducing your loan balance, effectively increasing your ownership stake in the property.
Unlike paying rent, which offers no return, mortgage payments contribute to your financial future.
As property values in New Zealand have historically appreciated, the equity in your home can grow quite substantially over time.
This increasing equity can serve as a financial safety net, providing you with valuable options such as borrowing against it for future investments like a rental property or significant expenses like renovations to your home.
Additionally, owning a home can make your expenses predictable – no more rent hikes to deal with.
Over time, building equity not only increases your net worth, but also provides a sense of security and financial freedom.
Apart from the 3 reasons listed above, having your own home is more than just numbers – it’s where life happens.
It’s the cosy spot you come back to at the end of the day, where you can hang your hat and plant your garden.
Stability is one of the foremost advantages, as homeownership provides a permanent place to live without the uncertainties of rental agreements or landlord decisions.
This stability extends to your social and community life, allowing you to establish long-lasting relationships and roots in your neighbourhood.
Personal satisfaction is another vital aspect, as owning a home gives you the freedom to make it truly your own.
From decorating to renovating, you have the say on creating a living space that reflects your tastes and lifestyle.
Owning a home brings a boatload of pride and happiness, and that’s something you can’t put a price tag on.
If you’re keen to get the ball rolling, then feel free to get in touch to explore your options with us.
Applications for finance are subject to meeting the lenders criteria, terms, and conditions. Refer to our website www.hbmi.co.nz for our Public Disclosure Document.
