Renting or Buying in Christchurch – Could You Own Your Own Home?

Renting or Buying in Christchurch – Could You Own Your Own Home?

If you’re renting in Christchurch and think buying your first home is out of reach, it may be worth looking at your options again.

Christchurch continues to be one of New Zealand’s more affordable main centres for first home buyers, and that can make a big difference when you’re trying to get onto the property ladder.

Why keep renting when you could be paying your own mortgage?

Let’s look at a simple example.

Imagine you’re currently renting a three-bedroom home for around $550 per week.

Depending on your circumstances, you may be able to purchase a similar home with a 5% deposit, subject to meeting the lender’s requirements and the relevant first home buyer lending criteria.

For example:

$500,000 purchase price
$25,000 deposit (5%)
$475,000 mortgage

Your actual mortgage repayments will depend on the interest rate, loan term and lender, but this demonstrates an important point:

The gap between what you pay in rent and what you could potentially pay towards your own home may be smaller than you think.

And instead of your rent helping someone else pay off their mortgage, your mortgage repayments are helping you build equity in your own property.

Can first home buyers really buy with a 5% deposit?

Potentially, yes.

Some first home buyers may be able to purchase with a 5% deposit, depending on their income, financial position, the property they want to buy and the lender’s lending criteria.

Your deposit could potentially include:

• KiwiSaver first-home withdrawal

• Your own savings

• Gifts from family, where acceptable to the lender

• Other eligible sources of deposit funds

There are also specific first-home lending options available for eligible buyers, so it is important to understand what you may qualify for before you start looking at properties.

“But I don't have a big deposit…”

This is one of the most common things I hear from renters.

You don't necessarily need a 20% deposit to start the conversation.

The first step is to work out what you can realistically afford and what deposit options may be available to you.

Getting pre-approved before you start attending open homes can also make the whole process much easier. You'll know your price range, understand what the bank is prepared to lend, and be in a much stronger position when you find a property you like.

Why not find out what you could afford?

If you're currently renting in Christchurch and wondering whether you could buy your first home, let's have a conversation.

I'll take you through your income, expenses, deposit and borrowing options and help you understand how much you could potentially borrow and what your next steps should be.

There is no cost to you for my mortgage broking service, and there is no obligation to proceed.

You could be closer to owning your own home than you think.

Call Martin on 027 526 0007 or contact Mortgage Group today and let's make a plan.

Mortgage Group – Simple. Fast. Approved.

IF YOU ARE IN THIS SITUATION OR KNOW OF SOMEONE THAT IS THEN THAT'S WHERE I COME IN, AS A REGISTERED FINANCIAL ADVISER I CAN ASSIST YOU FOR FREE, "SIMPLE FAST APPROVED" ALL YOU NEED TO DO IS CONTACT ME TODAY....