Property ladder: Pay your own mortgage
The great Kiwi property ladder
To buy or not to buy is a question we asked ourselves three and a half years ago. The answer was simple. You have to live somewhere and pay rent so why not pay your own mortgage off?
We saved really hard as a family of four, including two young children. We bought a low-priced home out in West Auckland, in a less popular area and we got our foot in the door. It was the best move we ever made.
I believe you have to start small, don't be over ambitious or set yourself unachievable goals you will never reach.
I knew we could never afford to live in the likes of Mt Eden or Sandringham (where we were renting) and accepted what the budget was once we got our preapproval from the bank.
You have to go out of the central city areas in Auckland with a smaller budget. There are many houses for sale in Auckland, but we all can't live in Mt Eden.
Home ownership is achievable but people have to sacrifice a few basic things. They need to live within their means and think about tomorrow instead of today and stop living on a credit-infused budget.
Work hard to get that first deposit, you don't need a lot with a banks offering low deposit first home options. I laughed the other night seeing a financial advisor on the news for one of the leading banks harping that he felt renting was cheaper than owning and a better option these days, when he admitted he'd never even been a home owner yet.
It's a no-brainer to pay your own mortgage instead of someone else's.
There are many homes for sale in Auckland, just look everywhere instead of just the city.
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