Is now the time to move from renting to buying?

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Posted 10 days ago by Craig Pope

The latest data shows residential rent rates have gone up, while house prices have plateaued. Auckland renters in particular have been told now is the time to make the jump from renting to buying a home. But what about here in Kapiti?

The latest QV valuations show Kapiti’s values have gone up 15.2% year on year and 2.7% over the past three months. With Kapiti’s great growth potential and our limited land supply it seems unlikely that house prices will go down despite what’s happening on a national scale. Rental demand is also high with limited supply so making the move to buy is a good option, if you can afford it.

To compare rents with mortgage repayments consider the following—if your first home is valued at $400,000 and you borrow 90% of this total, you can expect mortgage repayments to be around $450 per week, significantly lower than some of the rent houses in Kapiti are fetching— many of the higher quality homes can rent for over $600 a week.

Even with the numbers being clear, finding that first home can be tricky. With a continued shortage of properties available, the key is getting approved early and then having patience to wait for the right property.

My top tips are:

  • Buy now if you can get approved
  • Get the right advice from a mortgage broker
  • See if your parents can help
  • Avoid short term debts
  • Save what you can on top of KiwiSaver
  • Get into KiwiSaver ASAP 
  • Be patient for a house to come up
  • Be open to compromise
  • Don’t get demoralised if you miss out with an offer, another one will come along
  • Be prepared with all your lending application documentation.

 

‘Now’ is always the best time to buy if it’s affordable and you qualify for a home loan. Come and talk to our friendly team to see if we can get you on the property ladder and make your ‘now’ happen.

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