Buying my Own Home in Auckland

[auckland investor]

What should you look for in buying your own home?

This will be my first home. I have gone to get pre approval from 2 banks and with my income and my fiancées income, we can borrow up to 450k provided we have a 20% deposit which would be 90k.

We have looked into different properties and are considering either buying a 3 bedroom house in the 350-400k mark or a 4 bedroom house in the 400-450k plus mark.

We would live in 1 bedroom and rent out the others.

What would be your advice what to do with either getting a cheaper 3 bedroom house and not borrowing up to the maximum or getting a 4 bedroom house and borrowing up to the maximum. Bearing in mind, if we buy a house with 1 extra bedroom or a granny flat attached, we could rent it out for more.

What do you look for in a first house compared to a first investment?

[damage]

To buy under 400k is going to be tough unless you want manukau or out west.
What to look for, personally look at it long term, will you be happy in there for 10 years plus, does it tick all the boxes that you want?
Every person is different so it is a hard question to answer.

The reason I'd look to keep it for a long time is to minimise you're debt and let inflation increase the affordability. If you have a view to buying and then selling in a few years, all you will do is take on more debt.

So for me, think long term.

Also, why are you getting tenants in? You'll hate it

[PC]

Close to where you work - the commute in Auckland is insane.
Land, Land, good school zone, avoid anything with monolithic cladding, freehold on own piece of land.
Try and see the property in the worst weather - water can be a big problem.

[auckland investor]

Also, why are you getting tenants in? You'll hate it

I flat now so it's no different. Plus, the $300 extra per week from their rent will be nice. What else would we do with the other 2 bedrooms.

[WGN ex-property manager]

What is the long term plan?

Will you kick out the flatmates once the mortgage is smaller and use the house a home exclusively? Or will you move out to a home you really want and sell or rent out the first house?

Different plans make for different first moves.

[auckland investor]

What is the long term plan?

Will you kick out the flatmates once the mortgage is smaller and use the house a home exclusively? Or will you move out to a home you really want and sell or rent out the first house?

Different plans make for different first moves.

Won't sell the house, but most likely keep it and rent it out and then move into another we really want.

[One]

You're figuring your 4-bed house costs $50K more than a 3-bed house. Will the extra rent you get more than cover the interest on that extra cost? If so, bigger makes financial sense.

Are you competent handy people? If so, consider getting a run-down house and renovating while you live in it. That can be anything from giving it a coat of paint upwards. But be careful not to overcapitalise!

[DaveW]

Rather than $50k for a 4th bedroom, if necessary use the $50k to get into a more desirable location.

Ideally you want something in a good location AND that you can add lots of value to.

[buxlo122]

It think it would be a pain having to get in flatmates, and as you get older you will prefer to be having less and less of them.

Also doing renovation/improvement with flatmates around could be an issue.

I would be looking for a two bedroom place where you could potentially add another bedroom.

[One]

Yeah, eventually you'll probably get sick of flatmates. Good ones get harder to find as you get older too; there's a smaller pool of good people who want to flat.

But until you reach that point, there's nothing wrong with getting flatmates in.

The 2-into-3-bedroom house idea could be a good alternative too. Depends on your skills and time committments.