March Market Update
The 1st quarter of 2018 has seen an increase in the enquiry from first home buyer owner/occupiers in the Queenstown market, as well as strong enquiry still from investors.
First home buyer interest has in part been buoyed by the Reserve Bank easing restrictions somewhat on Banks around first home buyer lending for purchasing existing property. Due to this increase in demand, we will be hosting a session for first home buyers seminars explaining everything you need to know about buying your first home. Our March session is now full, but we have a second evening on April 24th at 5.30pm at our offices. To find out more about this event, or to register, please click here.
Here are a few things we will be touching on in the first home buyers seminars…
A big part of being a first home buyer is getting a deposit, and there are a few different options out there. Two of the main ones are KiwiSaver and the HomeStart grant, but there are many other options which are proving to be quite popular here in Queenstown. These can include a gift from a family member or a deed of acknowledgement of debt, along with the option of a limited guarantee which ringfences a portion of the lenders home.
We will also be discussing the various loan structures that are available, as well as the purchase process. Because over 50% of purchases in Queenstown are new builds, we will also discuss the difference in purchasing a new build versus an existing property.
Another key topic, is how a deposit can affect how your mortgage application is reviewed by the banks. For example, if you don’t have a 20% deposit, but have a contract to work 44 hours per week, the bank will only take into consideration 40 hours of this. This means overtime, bonuses, and commissions can not be included, and neither can boarders or flatmates. The reason for this is due to the risk factor of your lack of deposit, and therefore the bank will assess you at your lowest to ensure your likelihood of being able to repay the loan. Having a 20% deposit definitely makes buying a first home a much easier process and much more simple to get over the line.
Many of the recent changes have been in favour of first home buyers and we look forward to discussing these with you at our first home buyer seminar. We wanted to make this seminar slightly smaller than normal so it is a more comfortable environment and there is a chance to have a conversation and answer any questions that will be asked.
If you are unable to make the seminar time, please get in touch with us for a personal one on one session.
To find out more, or to register for our April seminar, please click here.