When you’re in your twenties and thirties, the words to the Clash song “Should I stay or should I go now?” could easily be replaced with “Should I rent or should I buy now?”
It’s a decision that faces young people every day, and of course, there are many benefits to becoming a homeowner… You can officially count yourself on the property ladder, with an asset that should increase in capital value, and you’ll have the stability and security that comes with being a property owner, so you can finally bid farewell to the search for new rentals and flatmates every six months.
Of course, very few Generation Y buyers have a pot of money stashed under the bed, so with the purchase of your first home comes the task of securing a mortgage. Now we’re not financial advisers, (so let us just put in a disclaimer here, that you should always seek professional financial advice when you’re looking to get a mortgage), but because we’re in the real estate market we do have a few tips that might help when you’re about to step into this exciting stage of your life.
- Show you’ve saved – In other words, you need to start thinking about getting a mortgage some years before you think about getting a mortgage! This post from ASB has some good advice on saving for your home deposit.
- If you’re struggling with step one, check out the alternatives – Welcome Home Loans is a Government supported initiative to make access to home ownership finance easier. If you can afford to repay a home loan but are having trouble saving for your home deposit, this could be worth looking into. Check out the website HERE.
- Show you’re solvent – You’ll also need to prepare for this key stage in your life by reducing debt. You won’t necessarily need to be debt free, but lenders will look more favourably upon your circumstances if you haven’t maxed out on credit cards and car loans.
- Meet the Managers – You don’t need to get your mortgage from the bank you bank with, so do your research, meet the lending managers and find out who are offering the best deals.
- Switch if you have to – You may find that some banks are prepared to offer you good mortgage rates, but in return, they may want you to switch your accounts to them.
If you’re thinking of buying in Marlborough we have some great entry level homes, contact us to talk to an agent.