First Home Buyers - How much does it cost to own a house?

There are many costs which come into play when owning a house, the biggest one being the Mortgage. So how much does it really cost?

Well let’s look at the figures:
Interest rates are at an all-time low and experts are expecting them to stay there for a while. If we look at ANZ’s current 1 year fixed interest rate special of 4.25% we would be left with the following repayments on a standard 30 year term home loan.

$200,000 = Repayments of $226 per week

$300,000 = Repayments of $340 per week

$400,000 = Repayments of $435 per week

$500,000 = Repayments of $567 per week

If you look at rental rates in Auckland, owning a house and paying the mortgage is comparable to renting. Sure there are other costs involved with owning a house such as maintenance, rates and insurance, but in the long term it is an investment which you own. Besides, you are already paying off a mortgage, it’s just not yours.

It’s not as hard as you may think either, with many products targeted to help first home buyers get onto the property ladder. From withdrawing your KiwiSaver to the HomeStart Grant, there are mulitple sources that can help to make up your deposit. The government will even back you if you are wanting to use a smaller deposit through Welcome Home Loans. While conditions do apply to all these options, a little bit of budgeting and a big helping hand from these sources can get you one step closer to owning your own home, even with the current prices in Auckland’s housing market.