It’s no rocket-science that a worldwide recession results in the inequality between low and high-wage earners. New Zealand is no exception. Even before the pandemic, the country has shown a wealth gap since the 1980s, with well-off Kiwis getting richer by the second, while those earning less tend to find it hard to earn more income. Because of this, housing has become unaffordable for most. 11% of Auckland homes are priced at $600,000, the cheapest among the listings in the area.
However “affordable,” a minimum wage earner would still choose a smaller space somewhere else, considering all other expenses they might have. This also makes it impossible for young adults to find a house that fits their lifestyle, which can take longer for them to save up for their own homes.
Of course, it’s great when you can buy the house you want with the money that you already have. But with little income, it can be difficult to get your dream home right away. It’s one thing to worry about, but it’s something you can work out through strictly following the money-saving tips that truly work for you, financial schemes, and the help of the internet to do more of your own research.
There's always hope! Here are some ways to find your dream home at your own time. This will require a lot of planning, and a ton of research to come up with a wise home-buying decision.
When the going gets tough... adjust your sails! The economy might have failed us recession after recession, but there are still ways to acquire the house you want right within your means. If you have a trusted broadband at home, you can easily find listings online and compare prices according to your budget.
Always consider your budget in buying anything, especially when purchasing a house. Lenders advise that you shouldn’t buy a property that is twice your annual salary. Take note that housing expenses include mortgage and other maintenance costs like association dues, so you should know how much you’re willing to pay. The total housing does not stop with your first deposit. Consider other expenses like utilities and bills once you’ve settled.
Other things you can add on your house-hunting checklist are as follows:
Know that it will always be up to you, and the life you want to live in your new home. So take your time in saving up and looking for the right place.
It’s good to be prepared when handing in your first deposit. Lenders require at least 20% deposit for homes valued at $150,000, requiring you to deposit $15,000 up front. So, it’s best to save up for your first deposit and focus on how you can pay your monthly mortgage through saving and budgeting. This will better your chances of getting approved, and quite possibly, inspire you to find more sources of income.
Be wise in buying your first home. Check similar homes online and compare market prices before you can make an offer. A property priced higher than other houses within the area could be an advantage for bargain.
Before moving into a new residence, you should have an idea how much your expenses will be. Jot down bills, utilities, groceries, insurance, and extra spending such as school fees so as to avoid exhausting your income.
When you're ready, you can talk to your bank on how to go about applying for a home loan with the budget that you have.
And lastly, save for the long term by finding the right utility plans for you! Compare the best deals on Power, Mobile, and Broadband right here at CompareBear!
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