First Home Buyers – The easy wins!
Building equity on your first home is not just the smart move, in some cases it can be the single most forward-thinking investment move you will ever make. Your property is an asset and building equity is an investment in your future. Your equity can pay your kids college fees, be the nest egg for your retirement and can be the finance you need to remodel your home.
Owning a home in Auckland is a very quick way to get the ball rolling. Here are a few pointers to help you get there.
1. Adherence to your mortgage payments
The equity of your property is calculated by adding the down payment amount to how much you have paid down on your mortgage.
By paying the mortgage, you’re building equity. Simple.
If you for example purchased your house for $600,000 and put in a 10% deposit, your stake is $60,000. It’s wise to find out how much of your mortgage payment is paying the interest and how much is paying the principle. Paying the principle is were you are building your equity.
2. Sit on it
Wait for your property value to rise. The Auckland housing market in 2019 shows trends of moving in waves.
Patience is important in this game. Too many homeowners get itchy feet and sell at the wrong time, losing tens of thousands. The market will naturally move up and of course can also move down. Enjoy your home, make memories and more importantly grow equity!
3. Keep it fresh
Home renovation is a really great way to add equity. The value of your home is based on how the market perceives it.
Kitchen renovations, bathroom remodeling, adding wooden floors, tiling, painting and carpeting are all great ways to increase the future value of your home. Adding a nice feature to the outside of your property or a new stone bench top to the kitchen is also a great way to make your property stand out.
4. Pay now. Play later.
Everyone loves to take lavish holidays, go shopping, have nice new cars (on finance) and eat out whenever the opportunity presents itself.
Pay more on the mortgage if you have the expendable cash. Remember, you’re trying to build equity. Although our friends and family may be adding pics to Instagram every 5 minutes of the restaurants they are in or holidays they are on, they are not investing in their future, you are.
Keep this in mind when things get challenging:
“Being broke is hard, paying down your mortgage is also hard. Choose your hard".
Thinking of adding a new kitchen, upgrading the laundry or even adding cabinets to the garage? Invest in the quality of your home today, with Kavanagh Kitchens Auckland.