Singular focus leads to homeownership
Sharon Stephenson Mortgage adviser Angela Downie tells about her family’s journey to owning their own home and the long hours of work to be able to do so.
Does the apple fall far from the tree? Not in Angela Downie’s family. Downie, the founder of Platinum Mortgages New Zealand, says growing up with parents in the finance industry, including a father who is a mortgage broker, meant she was always likely to follow a similar path.
‘‘I was financially literate from a young age,’’ says
Downie, 35. ‘‘I saw my parents manage money well and start saving for their retirement when they were 25. With the cost of living crisis, the pension isn’t much to live on so that careful planning should pay off for them when they retire.’’
Born in South Africa, Downie did fall off the wagon after leaving school.
‘‘I should have bought a house when I was 18, as my parents suggested,’’ she says.
‘‘But instead I bought a car and got into debt. I don’t regret any of it, as I had a great time, but I learned the hard way that there has to be something more than living from pay cheque to pay cheque.’’
Downie, who married builder turned truck driver Leon
Downie in 2018, says her relationship with money turned around when the couple moved to Queensland’s Gold Coast.
‘‘We both worked in a gas plant, doing 60- to 70-hour weeks, because we decided we wanted to save for a house. We knew that when we had kids, we wanted our own roof over our heads.’’
In 2014, the couple bought a house in Auckland’s Millwater.
‘‘We were living in Australia at the time so bought it sight unseen. We rented it out for another two years but every spare cent we had went on the mortgage,’’ Downie says.
When they returned two years later, they sold it for enough of a profit to fund the
20% deposit on their second home – a 1970s do-up on Auckland’s North Shore.
Leon started a building apprenticeship around the same time, so he was able to help with the renovation.
The couple also added an extra bedroom, which they rented out to a series of boarders.
‘‘It wasn’t ideal having someone else there, but we designed it so that our boarders had their own entrance, bathroom and kitchenette, so they were pretty separate.
‘‘Plus, it was short-term pain for long-term gain, because it helped us get the mortgage down.’’
But last year, when seeking more room for their son Harley, 4, the couple sold that house, fortuitously just before the market dipped.
‘‘We thought: Let’s put it on the market and see what happens. We started looking around but wanted to wait and see what was happening with the market, because it’s such an unknown.’’
They were able to stay with Downie’s father-in-law for three months, while spending every weekend traipsing around open homes. They eventually found their current home, a fourbedroom house in Gulf Harbour, last December.
‘‘We love this area – it has such a great sense of community and great neighbours. We’re close enough to the shops but also far enough out of the hustle and bustle of city life.
‘‘The house is only six or seven years old, so it’s a nice change not to have to do any renovations.’’
While the family is settled now, the long-term plan is to move to the country and dip their toes into the commercial property market to help fund their retirement.
Although Downie has worked for a number of mortgage brokers, including contracting to a company her father worked for, she always wanted to work for herself.
‘‘I love what I do. I get up in the morning excited about who I can help today.’’
Juggling 60- or 70-hour weeks around a preschooler isn’t easy, but Downie says she wouldn’t want to do anything else. ‘‘It really is a privilege to be able to help people get into a home. Or help those who might be having a hard time.’’
She gives the example of a young couple with two children who fell into arrears with their payments.
‘‘The lender was going to repossess their home,’’ Downie says. ‘‘I was called in to refer them to budget advisers and work with them on a financial plan so that they could keep their house.’’
Having helped many firsthome buyers into their homes, Downie is clear that they need a good support team around them.
‘‘It’s important that you don’t go in blind to the bank and give them the wrong information, or miss some key detail, because they can then decline your application,’’ she says.
‘‘Having someone like a mortgage broker to hold your hand every step of the way can help you get that yes from the bank.’’
When it comes to seasoned property investors, Downie’s advice is to ensure they have the correct loan structure in place.
‘‘Sometimes the cheapest option may not be the best in the long term, so make sure you have the right loan structure,’’ she says.
‘‘And don’t put all your eggs in one basket with one lender – spread the loans around.’’