Hi, new here, I have read this forum with interest for the past year having contemplated purchasing a property. Now I'm looking at buying my first property soon and would love some advice or critique of my plan. While I am not an investor at this stage it is definitely a goal within 5 years.
Long story short: I am married with two kids, I have reasonably stable employment and am disciplined/good with money. I am an apprentice carpenter and my income will increase dramatically in the next two years. My weekly income is 1110 before tax all up. My wife doesn't work although will be in near future. And I have been told I can get an extra $100 per week by WINZ.
I have lived in Massey West Auckland for the past 6 months paying $370 per week for a 3 bedroom. Basically I am looking at buying a cheap reasonable house I can find (200-240k) in the area (which may not be easy), slowly doing modest renovations (insulation, deck, fence, paint, mouldings) and either keeping for a rental or selling in a few years.
Using ASB and Kiwibank's online calculators I've found that I could expect repayments to be approx $300 per week over a 30 year term on a 225k mortgage at current interest rates. I understand it's just a quick estimate and 30 year term is so I have minimum payment obligation just in case. This leaves $70 for insurances, rates and cost of home ownership, is that close to reasonable? I currently save $150 per week approx on top of budgeted expenses, and I expect my income to increase dramatically in the near future so I think I have wiggle room. At 300 a week it is less than my current rent and I can't foresee many situations where I would be unable to pay this much.
I intend to go with Kiwibank's offset mortgage because while I want to put in as much as I can into my mortgage I would like to be able to pull out money just in case, not that I plan to. I currently have a 15k deposit however if I go via the Welcome Home Loan's route (ie no deposit required because I am a low income earner) I can put that straight into a Kiwibank account, not pay interest on the same amount of money however still have it available for emergencies.
My biggest concerns are one interest rates rising and property prices falling eg council releasing more land or reducing the cost of new building. Also I think I will probably have trouble getting a mortgage due to my circumstances. Do you think it would be easier to get a small mortgage of say $300 being that I have been paying more in rent of say $370 per week? My parents would possibly be willing to act as guarantors or is there a better way? My credit is okay I think, I have used my credit card for 5 years and paid it off in full every month, have had a loan for my wife's wedding ring and made regular savings.
Next step is talking to someone at the bank but I thought I would ask others' opinion first. Any opinions, advice, criticism? Thanks!
Sorry if I come off as naive
Long story short: I am married with two kids, I have reasonably stable employment and am disciplined/good with money. I am an apprentice carpenter and my income will increase dramatically in the next two years. My weekly income is 1110 before tax all up. My wife doesn't work although will be in near future. And I have been told I can get an extra $100 per week by WINZ.
I have lived in Massey West Auckland for the past 6 months paying $370 per week for a 3 bedroom. Basically I am looking at buying a cheap reasonable house I can find (200-240k) in the area (which may not be easy), slowly doing modest renovations (insulation, deck, fence, paint, mouldings) and either keeping for a rental or selling in a few years.
Using ASB and Kiwibank's online calculators I've found that I could expect repayments to be approx $300 per week over a 30 year term on a 225k mortgage at current interest rates. I understand it's just a quick estimate and 30 year term is so I have minimum payment obligation just in case. This leaves $70 for insurances, rates and cost of home ownership, is that close to reasonable? I currently save $150 per week approx on top of budgeted expenses, and I expect my income to increase dramatically in the near future so I think I have wiggle room. At 300 a week it is less than my current rent and I can't foresee many situations where I would be unable to pay this much.
I intend to go with Kiwibank's offset mortgage because while I want to put in as much as I can into my mortgage I would like to be able to pull out money just in case, not that I plan to. I currently have a 15k deposit however if I go via the Welcome Home Loan's route (ie no deposit required because I am a low income earner) I can put that straight into a Kiwibank account, not pay interest on the same amount of money however still have it available for emergencies.
My biggest concerns are one interest rates rising and property prices falling eg council releasing more land or reducing the cost of new building. Also I think I will probably have trouble getting a mortgage due to my circumstances. Do you think it would be easier to get a small mortgage of say $300 being that I have been paying more in rent of say $370 per week? My parents would possibly be willing to act as guarantors or is there a better way? My credit is okay I think, I have used my credit card for 5 years and paid it off in full every month, have had a loan for my wife's wedding ring and made regular savings.
Next step is talking to someone at the bank but I thought I would ask others' opinion first. Any opinions, advice, criticism? Thanks!
Sorry if I come off as naive
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