Latest news with #firsthome
RNZ News
30-05-2025
- Business
- RNZ News
How do I know what to offer for a house
RNZ's money correspondent answers your questions about buying a house. Photo: RNZ We're trying to buy a first home and lots of places we look at are "price by negotiation" or deadline sales. How do we know what to offer? I think there are a few things you can do to help give you a guide to what sort of offer might be appropriate. It can help to look at other recent sales in the area, and work out how they compare. You can find these on sites like - if you see a place that looks a similar size and condition and in the same sort of area, it might give you a guide as to what might be reasonable. This is where going to a few open homes before you start looking seriously can really help, because you'll get a sense of what represents good value. Sometimes you see data going around about a certain suburb selling at a percentage above or below CV - this can give you a general guide but won't account for the specific features of the particular house you're looking at. But Steve Goodey, who does a lot of this in his work as a property investor and investment coach said those sorts of data sites would not help for some of the factors that can make all the difference when you're buying a house to live in. He said while an offer for a rental property was usually about making the numbers work, when it was an owner-occupied deal other facts were more important, like the vendor's motivation, how badly the buyer wanted a particular property, how soon they needed a house and how "special" a place was. The price that a vendor might be willing to accept will also be influenced to a degree by their circumstances - someone who is just testing the market to see if they can sell will be less likely to take a lower offer than someone who needs to move. If someone bought recently, they might also have less room to accept a lower price than someone who bought a long time ago. Real estate salespeople should give you a guide as to what sort of price range the property might be in, but remember they are acting for the vendor. You'll need to do your own research and offer a price that feels right for you. It's then up to the salesperson to present that offer to the vendor, and you can negotiate from there if it's appropriate. I'm thinking about buying an investment property but how does it work to use the equity from my existing house? It's quite common for property investors to get started by using the equity in their own homes. It works like this. If you bought your house a while ago, and you've paid down your home loan, you might have built up extra equity in your property. Say for example you bought your house 10 years ago for $500,000 and it's now worth $1 million. If you had a home loan initially for $400,000, and you've paid off a bit of the loan over time, so you now owe $350,000, you've gone from having $100,000 equity to having $650,000. The bank may let you increase your loan to $800,000, giving you $450,000 that can be used to purchase an investment property. You can use that equity as a deposit and then get a loan for up to 70 percent of the investment property's value to complete the deal. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
News.com.au
26-05-2025
- Automotive
- News.com.au
‘Extremely stressful': Young couple's shock after buying their first home
When a young Aussie couple bought their first home they were elated, but their excitement quickly turned to stress for one unforeseen reason. Clare Easton and her partner Logan, both 23, bought their first home together in Newcastle, NSW, last year with a five per cent deposit. In NSW, the average settlement period for a property is around six weeks, but in their case, it dragged out for a torturous six months. 'When we bought, I was so excited, but when we settled, the process felt like it had been ruined from all the complications and extended wait time,' Ms Easton told The situation was complicated by the fact the property was a deceased estate and, because they purchased the home over the Christmas period, courts were closed. There was a lot of paperwork to sort out and even after months of negotiating they had issues the day before settling. 'It became extremely stressful,' she said. 'Our settlement was six months. Crazy right? During the six months it was terrible. At one point we were even given the incorrect settlement date.' At one point the couple packed everything into boxes and were then told a week out that there'd been a 'miscommunication' and they couldn't move in just yet. 'In hindsight, we were lucky to have this time to save so much extra money, but we had some unexpected car troubles,' she said. Ms Easton said that the poor communication made the process particularly difficult. 'We were not communicated with for a really long period of time during this and it felt like no one wanted to help us,' she said. Things also just kept going wrong. During the settlement, her car was hit by a bus, and the engine of her partner's car blew up. 'My car was thankfully able to be fixed with insurance, but Logan's car was going to cost more to fix than it would even sell for,' she explained. 'We also had planned to sell that car for renovations as he has a company car, so that was extremely disappointing for us, but we thankfully had time to work things out.' One of the reasons the 23-year-old found the process so nailbiting was because of how hard they'd worked to buy. They'd hustled for over two years to save up for a deposit, lived with family, and budgeted everything. It wasn't an easy journey. the couple had consulted with a mortgage broker initially and were gutted to learn their borrowing power was limited. 'When we had this first consultation our borrowing capacity was very low. I was working one part time job and two casual jobs,' she said. Ms Easton explained that, even though she was working to the point that sometimes she'd go weeks without a day off, she didn't have job security because it was all contract and casual work. While her partner Logan had secure work, she didn't, and therefore they were at a financial stalemate. 'It wasn't until I secured full time work in Newcastle and having a few more months of savings behind us that we consulted with our second mortgage broker,' she said. 'Our borrowing capacity had increased by over $100,000 to $705,000 max, inclusive of deposit and we finally had something we could work with.' Getting financial approval was only half the battle, she then found it was hard to be 'taken seriously' by real estate agents. 'From open homes full of investors looking to expand their property portfolios, to conveyancers who treated us like an afterthought and feeling like we were so out of our depth,' she said. Even though the couple managed to push through not being seen as serious buyers, they also had some heartbreaking near misses before they secured their property. One property they made an offer on was listed with a price guide between $620,000 and $680,000, and the couple thought they had a 'good chance' because that was within their range. 'We put an offer in relatively quickly, and it had jumped to $735,000, and it ended up selling for $740,000,' she said. 'At that point, we honestly gave up.' Ms Easton said they truly thought they just didn't have enough cash to buy and would end-up locked out. 'We thought we would fall victim to the housing crisis that we continually heard about, and we just kept seeing everything sell way above asking and outside our price range,' she said. They could only purchase their house because the sellers were motivated more by who bought their home than by money. Ms Easton said she'd had her eye on the home for a while, but it was out of their price range, and then the price guide dropped. 'We thought that something for sure had to be wrong with the house. Why has no one bought it? And why has it dropped in price,' she said. The 23-year-old said the place was a little tired but had great bones, and they could instantly see the potential. 'We grilled the agent to find out what was wrong with the place, it turns out the lady who owned the home had sadly passed,' she said. Developers had reportedly offered over $800,000 for the property but the owner's children turned it down because they didn't want development to take over the neighbourhood. 'They also wanted the home to go to a young couple who were first time home buyers,' she said, a revelation that had her 'crying'. 'I literally could not believe it when I got the call to say they had accepted our offer, I could not believe how lucky we were to have come across people who felt like they were in our corner before they even knew us 'In a world with so much economic stress, they forfeited a large profit, and we were the lucky ones; we were very grateful.' Even months later, Ms Easton and her partner still feel lucky they were able to secure the property, even though it took them six months to move in. They're now focused on renovating it and using 'elbow grease' to get the job done. Of course, maintaining a mortgage isn't easy, but the young couple said their mortgage broker was brilliant at preparing them. 'We actually saved our weekly repayments for the whole six months of settlement, so we knew what we were in for,' she said. 'We also budget our groceries, but we do live with the fear of unexpected costs because after mortgage, bills and groceries, there really is not much left. 'Let's say that we aren't looking forward to a holiday anytime soon.'
Wall Street Journal
23-05-2025
- Business
- Wall Street Journal
First-Time Home Buyers Downsize Amid Tight Supply, High Interest Rates
As the housing market goes through the critical spring selling season, size matters. Buyers who are trying to purchase their first home but find themselves boxed out of their dream because of persistently high prices and mortgage rates, as well as low supply, are making certain concessions, just as builders are doing what it takes to close deals.
News.com.au
21-05-2025
- Lifestyle
- News.com.au
23yo homeowners' rude shock at supermarket reality
As supermarket prices continue to climb, people are turning to social media to share their experiences with their weekly grocery shopping. Gold Coast local Maddison Smillie, 23, was one such Aussie, taking to TikTok to express her shock of her first proper grocery shop after moving out of her family home and into a property she bought with her partner. 'What is the usual amount to spend on groceries each week?' she asked her followers in the clip as she shopped at Coles. 'My partner and I are 23 years old, and we just bought our first home … we've been so lucky to have lived with my parents this whole time; we've never had to do a proper grocery shop. I know how expensive food is, but I still felt shocked when I saw the price of cheese.' Some of the pantry items she bought included condiments, spices, canned tomatoes and olive oil, as well as snacks like chips and crackers. She and her partner also picked up some Scotch Fillet steaks, mince, chicken breasts, a rotisserie chicken, two litres of milk, Chobani yoghurt cups, fresh vegetables, bread rolls, soft drinks and cat food. The total came to $214.51. Ms Smillie's video sparked a flood of comments from people eager to share their own weekly grocery tallies and their best tips for saving money. 'My partner and I spend about $250 a week. Our biggest cost-saving hack is frozen veg and always having something in the freezer that can be cooked quickly,' one user wrote. Another admitted, 'Me and my partner spend about $280-$320 a week'. Some claimed they kept their costs down to $150 by shopping at local food markets, butchers, and Aldi, while others swore by click-and-collect, claiming it helped them avoid impulse buys. Many also stressed that the first shop after moving out is often a rude awakening, but it's not always going to be so steep. 'Your first few shops will be expensive! But once you have the basics, between the two of us, we do $120 a week. We minimise processed food and shop specials on meats,' one shopper advised. Meanwhile, many were just curious about how she afforded to buy a home at such a young age. Ms Smillie, who has been with her boyfriend for nine years, replied: 'We started working and pretty much saving our money from 17 years old! 'We've always been really good savers, we never splurged on anything other then nice holidays.' So, what's normal when it comes to the weekly shop? According to research from Finder, a staggering 80 per cent of Aussies are actively trying to cut their grocery bills this year. The research found that 45 per cent are cutting back on non-essential items, while 43 per cent are reducing their overall spending. It's little wonder, as grocery spending hit a record high in January, with the average household now forking out $209 a week, up 11 per cent from $188 just a year ago. But there's hope for those looking to reclaim some cash. Nutritionist and MyFitnessPal ambassador Michaela Sparrow told that meal planning can make a serious difference. 'The people who save the most money and eat the most consistently healthy meals are the ones who plan ahead,' she said. 'You waste less food, shop with more purpose, and don't end up with five lots of the same ingredient 'just in case'.' Recent data backs this up, showing that parents who plan their children's school lunches save over $50 a week – which is more than $2,500 a year just by avoiding canteen purchases. 'And that's only school lunches,' Ms Sparrow notes. 'Imagine how much more you could save by applying that same mindset to your weekly shop overall'. Tips to save money and start meal planning When it comes to meal planning, Ms Sparrow advises people to start small, and make it 'doable'. Here are her tips: Step 1: Look at your week. This gives you a realistic starting point to then think about your grocery list and what meals you will be cooking throughout the week or planning in advance. Step 2: Plan just three to five dinners. You don't need to plan all 21 meals of the week. Dinners are usually the biggest source of takeaway temptation, so focus there first. Tip: You can always cook an extra portion, so you've got leftovers for the following day. Step 3: Write your shopping list based on the meals you've planned. Go through each recipe or meal idea and jot down what you actually need. Check your pantry and fridge first. Step 4: Do a little prep, if you can. Just roasting a tray of veggies or cooking a couple of proteins can go a long way, or perhaps making a batch of sauce or a grain like quinoa. It can make weeknight meals so much easier. For those who struggle with the mental load of it all, tools like the new MyFitnessPal Meal Planner are a game changer. It creates a full weekly plan and grocery list based on your dietary needs and your family's tastes, your cooking skill level, and how much time you actually want to spend in the kitchen.
News.com.au
11-05-2025
- Business
- News.com.au
Heart is where the affordable home is
When this Queensland couple decided it was time to buy their first home, they couldn't go past Cairns for lifestyle, community and affordability. Stocktake co-ordinator Sid Abdullah and educator Zara Abu Bakar bought a townhouse in the Cairns suburb of Edge Hill this month after falling in love with the Far North Queensland region. Mr Abdullah said he and his wife had lived in Perth and Arnhem Land previously, but after being in Cairns for more than a year, they knew they'd found home. 'The time was right for us to find somewhere to settle down,' he said. 'Cairns is affordable compared to other places. 'To find a place like ours in the (capital cities) is quite difficult.' PRD data showed Cairns had a median house price of $650,000, while the average cost of a house in Brisbane had soared to $910,000. Mr Abdullah said with property prices being more reasonable in Cairns than in Australia's capital cities, the buying process was easy. 'We had saved up enough of a deposit, so I approached a broker and then the bank,' he said. 'I got good advice from them and they were very helpful. 'We had no issues getting a home loan approved.' But the couple didn't just decide on Cairns for its property prices. 'We like the scenery and the weather is good, especially from June to September' Mr Abdullah said. 'You can drive to Palm Cove or go up to the Tablelands and Mareeba – it's all very beautiful.' Mr Abdullah said they settled on the suburb of Edge Hill for its community feel and central location. 'It's an older suburb that is beautiful and safe, and the community is quite open,' he said. 'They have a lot of ongoing activities and the Esplanade is within walking distance. 'We don't have to drive into the city because the supermarket is just around the corner and if we want to go to the cafe we can walk there.' Ray White Cairns principal Ray Murphy, who sold the couple their home, said there had been an increase in out-of-towners and new residents buying in Cairns to get more bang for their buck. 'We can see this in the response we've had to our auction event on May 19,' he said. 'There has been magnitude of interest. 'We had 50 properties ranging from commercial through to high end and first homebuyer stock going under the hammer, but 10 have already sold prior to auction. 'It's a sign of the times, the Cairns market is very affordable but it is strong and there is a lot of buyer demand.'
