Madison and Kelsey - Christchurch First Home Buyers
We’ve all been reading about it, it’s hard to escape the stories. “First home buyers are being pushed out of the market”, “Generation Rent”, “Housing Crisis”, “Millenials eating too much avo on toast”… it’s getting a bit boring. We recognise that most definitely in Auckland, housing prices have got out of control, and yes incomes have not kept up with the trend in rising living costs. Surely it is not all doom and gloom out there. There are still first home buyers getting onto the property ladder and yes some of our generation might be doomed to rent if they have to live in highly developed Urban areas like Auckland. So what about the people that are choosing a different path?
We recently sat down with some ‘millenial’ clients of ours to speak to them about their experience of buying their first home. What they told us surprised us and inspired us. We hope their story serves some hope to our generation and younger that it is still achievable to own your own home and you might even be able to eat avocado on toast at a café every now and then!
First up, it’s worth noting that this young couple, Madison and Kelsey, purchased their first home in September this year. They had a healthy 20% deposit and used their own savings, kiwisaver funds and the home start grant to make up this deposit. They did this without a guarantee from their parents or a gifted deposit (which can help first home buyers hugely if it is available). It was hard work and a great attitude that meant they could buy their first home at 26. This is no mean feat considering that both of them had taken time out to study after finishing high school, Madison to gain his degree at Canterbury (3 years) and Kelsey also partook in part time study. Being astute and hardworking meant both of them worked through their studies but also came out with student loans albeit smaller due to the fact that they had chosen to work part time.
Their first step in the journey to buy their first home was to jump online to a mortgage calculator and check to see how much they could potentially borrow, they were surprised to realise they would be able to lend up to $550,000 to buy their first home, and not only that as first time buyers that would mean they could borrow to 90% of the purchase price. This kind of approval would have meant they could have purchased a brand new house easily. What they told us next surprised us.
After opening homing through some new subdivisions in Christchurch they realised they wanted their first home to be just that, their first home. Not a dream home, not a brand new home but something that they could add value to, increase their equity in and easily manage the mortgage repayments on a shorter 20 year term. They wanted a great start, a stepping stone to their dream home in the future.
They changed tact with their open home strategy and started looking in areas that were not yet out of their reach in terms of price and had the potential to increase in value as the city continues to rebuild. After walking through over 40 open homes, making offers which didn’t get accepted, they finally settled on a great property in a solid suburb with plenty of room for growth and development.
What we found so refreshing about working with Madison and Kelsey, was their realism and attitude towards their first home. They knew their first home wasn’t going to be perfect and have everything they wanted but it was going to be an investment in their future. Not rushing the process and taking the time to talk to experts who could give them qualified advice meant they have now created an amazing foundation upon which to build their life from.
Sometimes, sacrifice now and a delay in gratification will mean long term, you get better rewards and results. We take our hats off to these two who are great role models for the next generation of home owners.
If you are a first home buyer and don't know where to start, then start with a free 15min chat. We can quickly give you some pointers in the right direction. Schedule your free chat now on the link below, it could be the most valuable 15mins you spend on yourself this year!