We all know that your home is one of the biggest purchases you'll make in your life. Here at My Mortgage, we want to make the path to owning you own home as easy as possible, so we've put together some handy tips which we know work, to get you into a position to make it happen faster!
1. Make a Commitment
For any big purchase, and even more so with your first home, you need to set some savings goals, and stick to them. Committing to the outcome you want to achieve is important and it may (and most often does) mean you need to need to cut back on some spending you might normally have. It doesn't mean you need to give up your Saturday brunches completely, just manage those things as treats rather than everyday items. This is the beginning of your first home journey.
2. Set up a savings account at another bank
When you log into your internet banking and see all your accounts in one place, it's a bit easier to decide to use that money for something else other than your long term goal of owning a home. Keeping your savings account at a different bank (and not having an EFTPOS card attached to the account), makes it just a little bit more difficult to access your money and you won't be likely to spend it on a whim.
3. Contribute a higher amount of your income to Kiwisaver.
While this is not investment advice, contributing a higher portion of your income to Kiwisaver, like 8% rather than 4%, builds up your Kiwisaver funds quicker. Because you can't access this money unless you buy your first home or turn 65, it's safely tucked away as part of your house deposit.
4. Increase income
For some jobs, it's possible to pick up extra shifts, work a few extra hours or on nights or weekends to increase your overall income. I've even seen some enterprising first home buyers make and sell products and doing some odd jobs for friends or family to help them get ahead. While this doesn't work for everyone (and obviously needs to be managed well so you get some time to yourself too!) it can be a great option to help you save a bit more and get you into your first home quicker.
5. Live with family (or others)
We all know that rent costs have increased recently, and it can be a big amount out of your weekly or fortnightly income. Living in a shared situation, with either parents or even friends as flatmates, can help you save a lot quicker towards your first home.
6. Be realistic
Get in touch with us and we can help you set a budget for your situation. Remember that your first home isn't your forever home and there will likely be things you may not love about it. Setting some realistic expectations around what you and afford and what is sustainable for you in the long term is really important, so you're in a position to enjoy living in your first home and also enjoy living life too!
As always, we're looking for ways to make your journey into your first home easy. Let us know if these tips were helpful for you and get in touch with us for a detailed, personalised plan to make your first home purchase happen.
Adam, Claire & the My Mortgage Team