3 minute read
Now is the time to consider buying
“Now is the time for tenants to look into buying. Many might be surprised what can be achieved, with the help of government schemes and pulling resources together,” says Tim Kearins, Owner of Century 21 New Zealand.
His comments follow Trade Me Property revealing that Auckland is now the most expensive region to rent in the country, after its median weekly asking price climbed to $660 in May – up 10% in just 12 months. At the same time, nationwide, median weekly asking rents are up to a record high of $610.
“Coming up with a sufficient deposit is often the biggest hurdle but prospective buyers should look into the Government’s first home buyer assistance. Government schemes include First Home Grants, First Home Loans, and First Home Partner.
“Given the sky high rents and the current buying opportunities, flatmates, friends and family members should also look into collectively pulling a deposit together and convincing a broker or bank of their ability to service. First home buyers struggling to get over the line, should also consider a tenant to help their bankability,” says Mr Kearins.
The Reserve Bank’s recent easing of the Loan To Value Ratio (LVRs) restrictions is also helping more first home buyers, not to mention that vendors are getting more realistic on their price expectations. The Reserve Bank has also indicated that future rises to the Official Cash Rate (OCR) are not expected.
Julius Capilitan, Managing Director of Century 21 Financial, says there are many ways to help Kiwis get into their first homes, with government schemes making it possible for many to secure a mortgage.
First Home Partner is a shared ownership scheme helping first home buyers purchase a home together with Kāinga Ora. First Home Grants give eligible first home buyers up to $20,000 for a deposit, while First Home Loans allow eligible buyers to purchase a home with a 5% deposit.
“There remain many exceptions to the banks’ rules which we know inside out. We also specialise in making loan applications much easier. Don’t believe the urban myth that it’s impossible to get finance. We’re still seeing plenty of approvals from banks and plenty of happy customers,” says Mr Capilitan.
“This winter is a good time for Kiwis to get on the property ladder. Get on a bank’s mortgage calculator to see what’s possible, and most importantly, talk to a broker. Homeownership is now in closer reach for many. It remains a great way to help people’s long term security and standard of living,” says Tim Kearins.
