Getting on the property ladder for the first time can be exciting and nerve wracking at the same time but with the right advice from the right professionals, your first home purchase can be just the financial leg-up you need in life.

Your first home can be one of the biggest financial decisions you'll ever make. It's an exciting milestone, but it can also be a daunting process if you don’t have the right advice. To help you navigate the property market minefield we’ve created this blog post to steer you away from a ‘ball and chain’ and hopefully towards a new build purchase that will act as a financial foundation for the rest of your life.

Why Budget Is Important But  Structure Is Vital For Future Success

One of the first steps in the home-buying process is to determine your budget. This will help you understand what you can afford and set realistic expectations as you begin your search. Many companies will steer you towards a standard mortgage advisor who will provide you with a pre-approval for a mortgage as this unlocks your ability to purchase their home. We advise you differently.

We recently partnered with Meta Financial - an independent financial advisor. By speaking to Meta you will have a more holistic view of how to create future wealth and freedom through property ownership. The mortgage is just an enabler - if its structure wrong it can be a ‘ball and chain’ we talked about earlier. Structured correctly from the start and it can be the key to your future wealth! We strongly advise speaking to Meta - for free - to get a multi dimensional approach to your property ownership and future financial freedom!

Smart Property Shopping

Once you have a budget in mind, it's time to start looking for your dream home. Many first time buyers work with a real estate agent - this approach is good as they will help you navigate the local market and find properties that meet your criteria. Having time with agents and visiting open homes is a great way to tune into the market and identify good vs bad properties. If it’s a new build you are looking to purchase there are a number of ways you can go direct to the developer. This is a great way to secure a ‘wholesale’ price rather than waiting for the product to be finished, staged and listed on the market. Often you will be able to secure a great product exclusively, without the crazy rush of open homes and market competition.

Not all developers are the same!

When you buy an existing home, you do your due diligence on the home. When you buy off plan or a new build, you do your due diligence on the company and the people who created it. Here at Rosefern we value our reputation and integrity, that’s why you’ll find our faces and names on our website - we’re proud to create the homes we create and It wasn’t long ago that we were first home buyers either so we understand how scary and tough it may seem. Here’s some top tips to consider when working with a new build developer;

When you buy an existing home, you do your due diligence on the home. When you buy off plan or a new build, you do your due diligence on the company and the people who created it. Here at Rosefern we value our reputation and integrity, that’s why you’ll find our faces and names on our website - we’re proud to create the homes we create and It wasn’t long ago that we were first home buyers either so we understand how scary and tough it may seem. Here’s some top tips to consider when working with a new build developer;

By following the tips in the infographic above, you’ll narrow down the more trustworthy property developers who can help you move towards owning your first home.

Other very important tips to consider when looking for a new build as a first home;

Buying a new build home can be an exciting but daunting process, so here are 7 tips to help make the process smoother:

1. Research the area: Before purchasing a new build home, it’s important to research the area where you plan to buy. Look at factors such as proximity to schools, public transport, shopping centres and parks to ensure you are investing in a home that meets your needs.
2. Consider the size and parking: Think about how much space you need, both now and in the future. A small home may be perfect for a single person or couple, but if you plan on having children or hosting guests it may not suit. Small homes without parking were very popular in Christchurch when interest rates were low, now these homes are everywhere and struggle with re-sale as there are so many around. Lot’s of supply, little demand.  Some developers build hundreds of the same house each year and effectively compete with their own stock, driving prices of their old stock further down. Don’t fall into this trap, it could be a financial sinkhole!
3. Budget: As we mentioned earlier, speak to a financial professional who is independent and not incentivised to just secure you a loan. This is a big purchase and the broker/advisor should be working with your best interests and outcome at heart.
4. Research the developer: Take the time to research the builder before making a purchase. Look at their past projects and read reviews from previous clients to get an idea of the quality of their work.
5. Check warranties: Make sure the builder offers a warranty on the new build home. This can offer peace of mind should any issues arise after the purchase. Masterbuild is the most well-known ‘brand’ of guarantee but it doesn’t necessarily mean its the best. Guarantee’s like Halo are becoming more prediminant in the market and offer the same if not better cover. Your lawyer will help with these questions too.
6. Check your eligibility for Government Grants; You could receive ‘free money’ up to the tune of up to $10,000 per person and up to $20,000 per couple for new home purchases, should you meet Kianga Ora’s First Home Criteria - more on this later.
7. Ask questions: Don’t be afraid to ask questions throughout the process. A new build developer should be able to answer any queries you may have and provide you with the information you need to make an informed decision.

Government Grants - Don’t Leave the FREE MONEY on the table...

Some good news for First Home Buyers looking to get a foot on the first rung of the fast moving property ladder, there is Government assistance  available up to the tune of up to $10,000 per person and up to $20,000 per couple that can now be used for new build purchases of $750,000 and below.

In Christchurch the previous cap on a new build was $550,000 which has now been lifted to a more attainable purchase price of up to $750,000 - meaning if FHB’s purchase a new build for $750,000 or under they could receive a First Home Grant (Government funding via Kianga Ora) towards the purchase of their new home - if they meet certain criteria.;

• A single buyer earning up to $95,000 per annum
• Joint or single buyers with one or more dependants earning up to $150,000 per annum
• A couple earning up to $150,000
• Have been regularly contributing to KiwiSaver for the past 3 years
• Have a deposit of at least 5% of the purchase price of the home (this can be in the form of savings, kiwisaver or gifting) some T’s and Cs will of course apply with the above too.

Ok, so if I meet these criteria, how much could I receive?

If you meet the criteria, Kianga Ora will contribute a minimum of $6000 ($2000 for each year you have contributed to the scheme) and a maximum of $10,000 per person. This is a top up alongside your personal funds and your kiwisaver - essentially free funds towards the purchase of a new home. Homes purchased from a developer off-plan qualify for these grants as long as they stay under the new $750,000 cap.

If you feel you qualify for the First Home Grant after reading the above - please follow this link for the application form. To check your eligibility please click here.

What are the benefits of a new home as your first home?

• As covered above the Government can provide up to $10,000 per person towards a new home if it is a new build. For an existing home purchase the amount would be half of that (max of up to $5000).
• A first home and personal residence is exempt from Brightline tax when sold. Picking a quality new home in a desirable location will help with resale value if and when the time comes to sell.
• If you want to hold on to your new property as a rental, this will be a simple transition and the easy care nature of the home will appeal to many tenants.
• The low maintenance and easy care living affords the owner more leisure time - something we all need a little more of.
• There’s no full scale expensive and time consuming renovation to embark upon.
• Owning your first home means getting out of the rent trap. Start paying down your mortgage and getting ahead in equity terms.

There you go. So many reasons to buy a new build home as your first home. If you want more information on Christchurch - click here to download our FREE ebook ‘Christchurch Rising’ - your guide to the Garden City and why it’s a great place to live and own property. You’ll find a number of tips inside that may just help you find that diamond of a property you’ve been searching for.