Why would you buy a house? We’ve got quite a few different thoughts about why buying a home in New Zealand is a good idea. We tend to think that owning our own home is a mark of achievement and success. It’s security for you and your family. 

You need somewhere to live...
The first reason being is that you’re always going to need somewhere to live. Seems obvious but owning a home means you always have a place to live on your own terms, not someone else's. 

It’s generally a pretty good investment...
Secondly, a property in New Zealand is generally a good investment. While the value may go up and down over time it is likely to go up in value long-term. The idea is that when you buy a house you will make repayments on the loan and gradually the cost of owning the property will decrease overtime. That means your loan will get smaller and the value of your home will likely get bigger. 

What about shares?
Why not just rent and invest money in higher earning shares? Well, that’s not a bad idea either but you do have to have a lot more experience with the share market and the business that you’re investing in. There’s less barrier to entry in the share market in terms of the size of investment you can get started with but it’s certainly more complicated than property for most people. We’re not saying that shares are a bad investment, they just come with another layer of complexity and risk.

With house prices at record highs and interest rates at record lows it’s worth acknowledging that getting into your first home can be a challenge. You’ll need a certain level of income and a decent sized deposit but with some advice, goal setting and planning it can be done. Once you are on the ladder, it’s generally smooth sailing. More on getting yourself prepared in Part 2: How to save for your first home.