ASB’s Mitre 10 Dream Home lending expert talks about how to save for your first home
How much you are looking to spend on a property is the most important part to consider, after that you can get an idea of what you’ll need to save as a deposit. It’s important to know this information so you can set a target.
- Set a budget. It may seem simple enough but this way you can work out how much you can save on a weekly, fortnightly and monthly basis.
- Have a look at your spending habits over the past few months and figure out where there are some luxuries you can cut back on to improve your savings.
- Utilise KiwiSaver, it’s a great way to help save for your first home and it also restricts the access so you can’t dip into your KiwiSaver savings!
Some first home buyers don’t give enough attention to the costs that come with owning a house. Things like rates, house and contents insurance, and general maintenance of the property can really add up, so it’s important to think about whether you can afford these before figuring out how much to borrow.
It’s very important to set a goal. Having a solid figure in mind that you need to reach gives you a measurable way to track your progress.
KiwiSaver is a great way of saving; the fact that you can’t touch the funds makes it especially helpful for those of us who find it hard not to dip in to our savings from time to time. Trade Me can also be a great source of extra money. Have a look around the house; there may be items that you no longer use that could be sold. Not only will this create space around the house (in preparation for your move) but you’ll get a bit of extra money in the bank to put towards the house deposit.
Once you’ve decided that you want to buy a house the first thing you should do is talk to your bank. We can have a look at your finances and let you know what you can afford, which will help you figure out what you need to save. From there we can point you in the right direction, give you all the assistance we can and support you through the process.