First property

[samishiv]

I have been looking for my first property since nov last year and since then seen the same property being put on the market 6 months later for 80k extra and being sold. I just wanted to see what everyone elses opinions are. I have seen a house which i love and would be a great family home for years to come which is at the top end of my budget. Im not sure if i should just go all out initially and have a decent house or should i start small and get to my dream house in 10 - 15 years and accumulating an extra couple of properties? Factoring in im 27 and getting married next year. Its a huge step getting the first mortgage so thought id get all the advice i can

[eri]

where in nz?

where in auckland?

[davtam]

It's your ideal property now, but how about in 5-10 years? You may well have kids then - is it a good house for kids? The point is that needs change over time, and your house requirements change as well.

I read once that Kiwi's change houses every 7 years on average, and IMO your first home is just that - your first home. Get something a bit cheaper, get on the ladder, build up your equity and them make your next move.


What ever you do, don't over extend yourself

[samishiv]

yea I am in auckland. Yea it will be a good house for kids but you make a fair point, i dont know what my "ideal" house will be in 5 - 10 years time

[mrsaneperson]

I guess the golden rule is dont bite off more than you can chew. "Sleep easy" at night knowing you can afford to pay off the mortgage with the "less than a dream home" situation, and less grey hair coming early.

[DBrown]

What part of AK?

[Harvey]

You could look at other options like flat mates, or by the house you want and rent it out, live somewhere cheaper then move into the property in a few years time when you are ready.

[Wayne]

Buy a house you can afford so you are actively paying down the mortgage. Get flatmates in to pay down even more. Add value by modernising it (Kitchen, bathroom etc - doing the work yourself if you can so long as you keep the quality up). When I started I was paying a 20yr mortgage at a rate to pay it off in 15yrs (huge saving in interest). Of course I never did pay it off because I sold the place well before 15yrs but had so much more capital.

If you mortgage to the max you may find the mortgage becomes a burden and you feel you can't get ahead.

[Toasty]

Potentially find a place that would make a good rental. Move in yourself and build equity as fast as you can. Pay down the loan and improve the property. When its time to move on find another property that is slightly better but that would still be a good rental. Sell your original property to another structure LTC/Trust/LLC... and releverage to 100% and transfer the equity to your new home. Rent out first property. Properties will be cross collateralised initially.

Rinse and repeat. Make sure that you run all this through an accountant!

[drelly]

Buy my place, live in the studio and fill the rest up with doctors and nurses! It's what I'd do if I were single!

[Craig Pope Mortgages]

What an exciting time, like others I believe you should go in at the mid range of your budget but buy something you can add value to and a property that will be potentially attractive to buyers when you come to trade up.

Buying an average home now that can be made into a smart home later will give you that extra kick when it comes to climbing the property ladder.

[samishiv]

thanks everyone for your input. Ill let everyone know what i end up doing