What's your first home buying resolution?

Housing Market Written by Squirrel , Feb 5 2016

Going to the gym. Saving an extra $20 every week. Finally starting to watch The Sopranos. We all have different ideas for our resolutions in the new year, but what about those buying their first home? Dealing with such a monumental decision requires some larger-than-life thinking, we say. And what better time to set some new goals than at the start of the year?

So, we've come up with a few resolutions that you might want to think about if buying real estate or property investment is on your agenda for 2016.

I will cut the bad habits

When you picture a first home buyer, it's probably someone in their late twenties or early thirties. Held down a job a while, got some significant savings, perhaps even looking to start a family. However, with current Auckland property prices, it's hard to get enough together for a stable mortgage foundation.

One oft-cited resolution that can help you is quitting habits like smoking. You know all about the health benefits, but the hard data on financial benefits might be a jumpstart for your savings too. Statistics NZ indicates that 25-34 year olds are the most prominent smoking group for both men and women. On top of this, the price of tobacco has effectively doubled in the last six years.

At a pack per day, you could be saving at least $8,000 each year. Put that towards a first home deposit, and everything might just be a little easier when it comes to entering the Auckland market.

I will stop worrying

While Real Estate Institute of NZ (REINZ) data shows Auckland values picked up by 14.2 per cent between November 2014 and 2015, there are other factors to consider. The New Zealand Institute of Economic Research thinks the cash rate is going to stay extremely low in the coming 12 months, while the Reserve Bank expects LVR restrictions and building supply to ease pressures on the market.

So even if you saw a tough real estate landscape in 2015, a good resolution for this year might be to focus on the positives, and stop worrying. After all, there isn't always a real 'best time' to buy into the market. It depends entirely on your own financial situation.

Matching where you're at with your money to the right mortgage is where we step in. If you're ready to make some positive resolutions and get amongst the market, make sure to get in touch with us at Squirrel. Think of it as going to the gym - but for your finances! If you’re curious, you can use our mortgage calculators to calculate how much money you can borrow for a home loan, as well as what your repayments would be.

We can help. Have a chat to one of our advisers.