No deposit was no barrier for young couple
Buying your first home has never been tougher. We talk to one young Paraparaumu couple who have made it on to the property ladder.
Kat and Will Francis weren’t your typical first-home-buyers.
At 22 and 25 years old, the newly-married couple were two of the last people in New Zealand to receive 100 per cent finance when they bought their first home in November 2008.
Six months after their wedding, the couple managed to purchase a modest three-bedroom home in Paraparaumu for $230,000, a feat which enabled them to get their first step on the property ladder and start their family.
‘‘100 per cent finance had its positives and negatives,’’ Kat Francis said. ‘‘It meant that we had zero equity in our house, but it also meant that we weren’t paying ‘dead’ money into rent meaning we could afford to pay more than our repayments and reduce our mortgage faster.’’
The couple were completely unaware about the possibility of buying a house with no deposit until their parents encouraged them to visit a mortgage broker to discuss their options.
‘‘At the time we were just inquiring about how we could plan and set goals to work towards buying a home,’’ Francis said. ‘‘That’s when we found out we could get a 100 per cent finance and because we had a savings history for our wedding, we had things lined up without knowing about it.’’
Eight and a half years later, the couple are parents to five-year-old daughter Paisyn and are both working fulltime - Kat as an office manager in Wellington and Will as a retail manager in Paraparaumu.
They have recently upgraded into a larger home they bought for $470,000. They were able to put a large deposit on their new home due to their careful planning.
‘‘When we bought our first home the goal was to keep it for five years, pay off as much as we could and then work on getting a bigger house. It’s taken us a little longer than expected, but we did it.’’
The couple said their secret to affording their first home centred on working hard and saving, but they didn’t let this get in their way of living a normal life.
‘‘We didn’t live sparingly, we were smart with our purchases, took a couple of overseas trips and had two family cars,’’ Francis said.
‘‘But I love budgeting and finding solutions to problems so it has always been right up my alley to be able to make things happen by having a plan in place and goal setting.’’
Francis put a great deal of their success with property to date down to their decision to visit a mortgage broker.
‘‘We never would’ve known about any of these options if we hadn’t sat down with a broker,’’ she said.
‘‘I recommend anyone should go in and just sit down with one. Even if you can’t afford to buy a house right now, it’s great knowing what you need to do to get to the point where you can afford it.’’
Francis recognised everyone’s circumstances were different and that her way into the property market wasn’t a feasible option anymore.
Although it might be more difficult to buy a home in 2017, Francis said there were still many options out there.
‘‘My advice to first homeowners, is be smart and do your homework. Goals are always achievable if you can plan and have the heart and drive to back yourself.’’