Marlborough Property in Reach for First-Home Buyers

Marlborough Property in Reach for First-Home Buyers

Holding out house keys on a  house shaped keychainMarlborough has this month been compared to Auckland when it comes to the apparent unaffordability of housing, particularly for first-home buyers.

According to the report, released in March 2017 by ratings agency Moody’s Investors Service, Marlborough and Nelson are the only areas other than Auckland where the proportion of monthly income needed to meet monthly mortgage repayments is higher than the 10-year average for the region.

However, Harcourts Marlborough’s in-house mortgage and insurance advisor Peter Lewis says houses are still selling in Marlborough, and first-home buyers are still buying.

“It’s still possible for young people to save and own a home, even in today’s market.

“It can be done if you put your mind to it; we have first-home buyers buying every week,” he says.

Peter says the key to working towards a goal of buying a first home is to decide on a set of priorities.

“You’ve got to reduce the amount of short-term debt, because that can prevent people from getting a home loan. Big car loans and big finance loans really can make a home loan unaffordable,” he says.

“First home buyers have got to decide if they want to get into a home, or get caught in the trap of buying cars and TVs, and going down that road; money is too tight to be able to do both.”

Having a clear goal makes owning a home easier to work towards, and allows people to work out how much money they have to spend on everyday living.

Peter our in house mortgage adviser

Peter our in house mortgage adviser

“There’s got to be a balance between enjoying your time and also saving … it’s about people sorting out their priorities,” Peter says.

He adds that cutting down on “small” transactions like coffees, parking or meals out can result in a big saving each week.

“A lot of money is lost in little transactions; you can spend your $3, your $4, your $2, and then at the end of the week you’ve spent $400.”

Those who are serious about buying their first homes are also doing so with help from the government’s HomeStart grant, along with their KiwiSaver savings, Peter says.

“KiwiSaver and the HomeStart grant remain incredibly relevant in people getting into their first home … it provides the discipline of it coming out of your pay, matched by the employer and that ensures [saving] happens.”

Peter can help aspiring first home buyers at any point in their journey, once they have decided owning a home is what they want to achieve.

“I will talk to them now and let them know what they need to do for the next three years, or six months, whatever, and help them with setting that plan,” he says.

You can reach Peter by phoning him on 03 578 0888, or emailing him at peter@mortgage-express.co.nz.

Disclaimer:

While all care has been taken in the preparation of this publication, no warranty is given as to the accuracy of the information and no responsibility is taken by Mortgage Express Limited or Peter Lewis for any errors or omissions. This publication does not constitute personalised financial advice. It may not be relevant to individual circumstances. Nothing in this publication is, or should be taken as, an offer, invitation, or recommendation to buy, sell, or retain any investment in or make any deposit with any person. You should seek professional advice before taking any action in relation to the matters dealt within this publication. MX_Black Logo

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