It seems like the banks have chosen 2022 as the year that they have closed their doors to first home buyers or to those that do not meet their increasingly stringent lending rules.
The first half of 2022 has been about putting barriers in place to stop people buying their own home.
Other factors in the market have made it harder still – including the average cost to buy a home, interest rate rises and inflation making everything else increasingly more expensive.
It’s with all these aspects in mind that we have decided to think outside the square and share some ideas with you as to how you might re-think your approach to buying a house in 2022…
Maybe you haven’t thought about the following… yet…
Team up with someone else
- Do you know other people that want to buy their own home but can’t afford to buy by themselves?
- Are they willing to buy a home with you?
Use equity in someone else’s property
- Are your folks prepared to help you buy your own home?
- Do they have equity in their home? (do they own more than they owe?)
- Are they willing to help you for a limited period of time?
Use the First Home Loan scheme from the government
- The government supports First Home Buyers who only have access to 5% deposit.
- Lending criteria is stricter, but not impossible.
All of the above come with their own set of benefits and risks. It’s important to understand the ramifications of each option. Always seek legal advice.
If you’d like to discuss your situation and how to get into your own home faster, reply to this email.
Tim Oliver is a Financial Adviser and director of First Mortgages NZ Ltd and Oliver Financial Planning Ltd. The information provided in this article is general in nature and is not intended to constitute advice to any person.