Your Guide to Entering the Property Market as a First Home Buyer
Taking the first step onto the property ladder is an exciting milestone, but it’s also a journey that requires careful planning and informed decision-making. Whether you’re considering building new or purchasing an existing home, here’s what you need to know to make the process smoother and more rewarding.
New Build vs Existing Home: Key Considerations
Choosing between a new build and an existing home can be challenging, as both options come with distinct benefits and potential drawbacks. Here’s a breakdown to help you weigh your options:
New Build Advantages:
- Customisation: With a new build, you can often personalize features such as layouts, fixtures, and finishes to suit your lifestyle.
- Modern Features: New homes often come equipped with energy-efficient appliances, advanced ventilation systems, and modern insulation, reducing running costs over time.
- Warranty: New homes in New Zealand typically include a 10-year warranty, providing peace of mind for buyers.
- Lower Maintenance: Since everything is brand new, you won’t need to worry about costly repairs or renovations for many years.
Existing Home Advantages:
- Immediate Availability: Once your purchase is finalized, you can move in straight away.
- Established Neighborhoods: Existing homes are often located in mature communities with established amenities like schools, parks, and transport links.
- Potential for Renovation: If you’re open to adding your personal touch, an older home might offer the opportunity to renovate and add value.
Financial Assistance for First Home Buyers in New Zealand
To make home ownership more accessible, there are several schemes available to first home buyers in New Zealand:
KiwiSaver First Home Withdrawal:
If you’ve been a member of KiwiSaver for at least three years, you may be eligible to withdraw most of your contributions to put toward your first home. Learn more about eligibility and requirements here.
First Home Buyer Scheme:
With this scheme, eligible buyers can purchase their first home with as little as a 5% deposit. Offered by Kāinga Ora, the scheme provides access to a First Home Loan, making it easier to achieve your home ownership dreams. Learn more about eligibility and requirements here.
First Home Partner:
Offered by Kāinga Ora, this shared ownership scheme helps buyers bridge the gap between what they can afford and the purchase price of a home. Learn more about the scheme here.
Mortgage Advisor Help:
A mortgage advisor can be an invaluable partner in your journey to home ownership. They can assist with securing pre-approval, pairing you with the best bank for your financial situation, and helping you find the most competitive interest rates available.
Additional Tips for First Home Buyers
- Understand Your Budget: Meet with a mortgage advisor to get pre-approval and understand how much you can afford to borrow. Factor in costs like legal fees, rates, and insurance.
- Join Online Forum Groups: Joining forum groups for first home buyers can be a valuable resource. These groups are great for asking questions, learning from others' experiences, and staying informed about the latest tips and trends in the property market.
- Do Your Research: Explore different neighbourhoods and developments to find the right fit for your lifestyle and long-term goals.
- Plan for the Future: Consider how your needs might change over time. If you’re planning to grow your family, ensure the home has room to accommodate.
- Inspect Thoroughly: Whether building or buying, ensure your new home meets building standards and doesn’t have hidden issues. Engage professionals for inspections.
- Seek Expert Advice: Partner with professionals like mortgage advisors, lawyers, and real estate agents to guide you through the process and provide valuable insights.
Why Consider a New Build with Barrett Homes?
At Barrett Homes, we understand that buying your first home is a life-changing decision. We’re here to make the process as straightforward as possible. With our Price Promise Guarantee, standard features like stone benchtops and landscaping packages, and the ability to customise your interior colours and fittings at no additional cost, we’re committed to delivering exceptional value and quality for first home buyers.
Disclaimer
This blog is for informational purposes only and does not constitute financial, legal, or professional advice. Always consult with qualified professionals, including lawyers, mortgage advisors, and financial planners, before making property purchase decisions.
