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February 2020's Property Gazette
Published by Scott Miller
Will 2020 be the year you purchase your first home?
We think it could be with the First Home Loan.
The Welcome Home Loan has been re-branded and is now called the First Home Loan. Along with a name change, it is underwritten by Kainga Ora, which is now what Housing New Zealand are known as.
The First Home Loan is available from several different lenders, with as little as a 5% deposit required for first home buyers. If you were struggling to save the old 20% minimum deposit while renting, this may be your chance to own your own home.
You may also be eligible for a grant from the First Home Grant, also from Kainga Ora. Previously known as the HomeStart Grant, it provides up to $5,000 for a single or $10,000 for couples to purchase an existing home, or $10,000 and $20,000 respectively for a brand new home purchase. Give us a call today and let’s chat about your options.
Eligibility for the First Home Loan
In order to be eligible for the First Home Loan, you will need to meet several criteria, including:
- A maximum income before tax of $85,000 as a single person, or $130,000 for two or more people.
- A minimum of 5% deposit of the purchase price.
- You must be a first home buyer.
- Your chosen home must cost less than the regional house price cap.
- You must live in your home and cannot own any other property.
- Be a Kiwi or have Permanent Residency
Both a pre-approval (before you find a home) and a final approval (after you find a home) are available to borrowers. We recommend seeing us first, before you start looking for your first home. Having pre-approved finance can give you bargaining power when it comes to making an offer. Give us a call to make an appointment to discuss your options.
Does Building Your New Home Tickle Your Fancy?
If you’re in the market for a new home, why not consider building your own? When purchasing an existing home, you are restricted to the market availability. When building your own, the world is your oyster.
With 5% turn-key and 10% constructions deposit options readily available, many buyers are choosing to build their own home. If you’d like a home built specifically to your requirements, give us a call and let’s talk about your home loan options.
Insurance Matters
Paying for Medical Treatment
I listened to a story of a New Zealander who was suffering from brain cancer stating, “Kiwis will die due to unaffordable costs of treatment.”
He also stated "I'm not an advocate for health insurance at all, but I do urge everyone to get it even if you are young, because it could save your life.
"People die because they don't have enough money for these unfunded drugs - I'm going to die because I don't have enough energy to fight and get the money I need; I won't be alive to see my drug get funded."
“If I had medical insurance when I was in my early 20s, before I got sick, I would be able to get this treatment covered, but because I didn’t, I'm being left to die.
"When you're a kid you think your parents will be able to save you or bail you out of situations, but they can't with the cost associated with these drugs.
Questions:
Have you covered all your bases?
Are there expenses you haven’t considered yet like having to fund you own medicine, medical insurance can cover these costs.
Have you planned for a future without you?
For most people there is someone who depends on you, but what if you weren’t there? And what about the everyday costs? Who will cover those? Life insurance will fill those financial gaps even if you’re not there to do it.
How long would you last without your income?
ACC doesn’t cover illness so who does?? Sickness benefit, sick leave, a give a little page? Having personal insurance means you don’t have to rely on your savings while you get back on your feet.