It’s still possible to buy a house in today’s market despite the doom merchants telling us otherwise.
Yes interest rates are high, and yes it costs more to fill your car and pantry, but it’s about time we all remembered the saying ‘never say never’.
Anytime the housing market hits the news all you hear is that buying a house is now out of reach for a whole generation. While it is more difficult to buy a house now than it was 10 years ago, it’s still a realistic goal to get into your own home.
If you are serious about owning some property there are more ways than one to go about it.
Save, save, save!
Getting together a house deposit may seem like a huge task, but if you are serious about buying, then you have to start putting away your pennies. Save money in a high-interest bearing account and regularly check your progress. You will be surprised at how much you will have in the bank after a year. While you can access mortgages with 100% finance it’s always better to have cash behind you before you invest. Not only will you pay it off faster, you’ll incur less interest.
With a little help from your parents
Instead of buying a house on your own, you could suggest buying a property with your parents. There are many options available including joint ownership and family trust ownership. One couple, Chris and Danielle, purchased their first home in 2005 in Wellington via a family trust. They cover the mortgage payments and rates, and Chris’s parents will get back their deposit when they eventually move on. If you’re lucky, your parents may even gift money to you to cover some of the deposit or why not ask for a loan? If they can see you’re serious about saving they'll be happy to help.
Be patient
Buying a house takes time and you won’t find your dream house the first weekend you look (not unless the gods are smiling!). You may look at 50 houses before you find one that you like and fits your budget. It doesn’t matter how long it takes to find the one, because you will still be saving money for a deposit. Charles spent 18 months years looking for his perfect home and in the meantime saved a bigger deposit. Now he’s got exactly what he wants because he took the time to get it right.
Set realistic goals
Dreams are free and when it comes to property a waterfront mansion would be great, but you need to get realistic. Work out your budget and stick to it - so what if you can only afford a townhouse or unit? At least it’s yours. You’ll probably find what you can afford faster if you don’t get carried away. Also consider living away from the city because houses there are cheaper and often larger. You may have to sacrifice a little to gain a lot.
Invest with friends
An option for singles is to get together with some like-minded friends and buy a home together. Make sure you all agree on what you want, how much you can afford and sign a legal agreement with each other before you sign on the dotted line!
My story
My husband and I purchased our first home in 2005 (see picture). Fortunately my husband was a great saver so we had the majority of our deposit when we started hunting. We found our perfect house a month later and then had to wait another month before it came up for auction. With a little help from our parents we out-bid all the others and bought our first home. It is possible!
Good luck!
Jacinda
For tips on saving for your first home click here to visit Westpac.
It’s still possible to buy a house in today’s market despite the doom merchants telling us otherwise. 
Instead of buying a house on your own, you could suggest buying a property with your parents. There are many options available including joint ownership and family trust ownership. One couple, Chris and Danielle, purchased their first home in 2005 in Wellington via a family trust. They cover the mortgage payments and rates, and Chris’s parents will get back their deposit when they eventually move on. If you’re lucky, your parents may even gift money to you to cover some of the deposit or why not ask for a loan? If they can see you’re serious about saving they'll be happy to help..jpg)
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