Property SOS show can save your home

Sarah Pearce, left, and Hannah McQueen.

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TIMES are tough in the property market, with many Kiwi homeowners struggling to pay the mortgage as the recession and the consequences of over-spending bite.

Starting Wednesday, a new television programme, Save Our Home, explores common mistakes and offers advice to avoid the mortgage pitfalls which can lead to people losing their homes.

Hosted by property expert Sarah Pearce and financial adviser Hannah McQueen, the show follows 10 homeowners, from overcommitted couples facing foreclosure to cash-strapped newlyweds and people looking for faster ways to pay off a mortgage.

Pearce, a Ray White agent, and McQueen, a financial personal trainer at EnableMe, say the show provides common wisdom to people wanting to improve their situation.

They say the bulk of problems boil down to people over-spending or not having a realistic idea of where their money is going.

Stars of the first episode, Leah Murray, 40, and Shane Gow, 37, were trying to become mortgage-free by buying and selling do-ups. But the show's hosts revealed they were losing money and jeopardising the house they owned. Now comfortably in a family home they love and can afford, Murray says the duo "changed our lives".

Pearce says the "huge mistake" many Kiwis make is thinking their home will always increase in value. "When it does go up, they keep increasing the mortgage, using it like it's a free bank to fund a lifestyle they can't really afford. Then they realise too late they've got a huge mortgage they are struggling to pay, and when the market drops many of them are finding that their mortgage is more than their house is worth sometimes even when they've owned their house for 20 years."

And McQueen's key advice is to get professional help and to be up-front about your spending before a crisis forces your hand.

"The mentality in New Zealand is you only get financial advice if you are going backwards but you should be getting financial advice so you're going forward as fast as possible. People assume financial advice is only for the rich or the poor, but everyday Kiwis need it more than anyone else."

Save Our Home, TV One, Wednesdays at 8pm.

emma.page@star-times.co.nz