First Home Buyers Guide – Stroud Homes
First Home Buyers Guide – Stroud Homes
The right time to buy your first home
It might seem like an odd time to ask people to buy their first home in Auckland.
With the country just coming out of weeks-long lock down, many have been unable to work full-time and some have even lost their income entirely.
However, there are some good reasons to buy now for those who are able:
Firstly, interest rates are at a record low. Currently the rates are well below 3% (and can go lower) with the Reserve Bank deciding in late April to remove mortgage loan-to-value ratio (LVR) restrictions for 12 months.
Also, there are some great government grants up for grabs for eligible home buyers, to help people out on the housing market for the first time.
Financial help for first home buyers
If you are looking to buy your first home ever and you’ve been making regular KiwiSaver contributions for at least three years, you may be able to apply for a First Home Grant.
If you buy a new home or land, you can get $2,000 for each year you’ve paid into the scheme. The most you can get is $50,000 ($10,000 over five years).
You are able to apply as a couple, or separately (if you’re both eligible) but the most you can get for a new property or land is $20,000.
To apply, you must:
- be 18 or older
- have been contributing at least the minimum amount of your income (currently 3%) to your KiwiSaver scheme for 3 years
- have had an income in the previous 12 months (before tax) of less than:
- $85,000 for 1 person
- $130,000 for 2 or more people
- have a deposit of at least 5% of the purchase price
- agree to live in your property for at least 6 months:
- from the date you buy your home (the settlement date), or
- if the house is new, when the code compliance certificate is issued.
(Information from the New Zealand Government website – you can find more information about the First Home Grant here).
Record Low Interest Rates
Two major banks in the country have recently cut their home loan rates to below 3 per cent – a new record low.
This is done to provide value to clients during hardship resulting form the pandemic.
The new low borrowing rates will help to alleviate any financial worries that home loan borrowers might have.
Experts have encouraged first home buyers with a secure job to jump on the opportunity to enter the market sooner than expected.
If you have any questions, contact Stroud Homes Auckland South and the team can talk you through your options.
Why build your first home with Stroud Homes?
When choosing your builder it is important to ensure that you are totally comfortable with your choice as it might very well be the most crucial decision in the entire process, and there are many deciding factors to take into account.
This is especially true when you’re building for the first time.
Stroud Homes Auckland South gives you a fixed price you can trust and it’s the company’s utmost aim to make the whole process as smooth and enjoyable as possible.
Right now the team also has some great plans and some affordable land in new subdivisions, perfect for first home buyers.
Browse our different House & Land Packages here.
Our guarantees
Being honest and upfront in their approach to customers is paramount. You need to trust that when building your home, which is one of the biggest financial decisions you ever make, you are in good hands.
Stroud Homes also offer all clients a Structural Guarantee of 25 years, lifetime termite protection and any new product warranties with all of your new electricals and appliances.
To learn more about why you should build with Stroud Homes, check out all Guarantees.
