Creative Thinking Emerges as Home Ownership Becomes More Challenging
Home ownership in New Zealand doesn’t seem as achievable as it once was. Purchasing a home in New Zealand in 2022 can be extremely difficult and many prospective buyers are facing several challenges, but can creative thinking overcome such challenges?
A number of New Zealanders find themselves in a situation where they cannot afford to buy a home by themselves…however, if they teamed up with some others their home ownership dream can become a possibility.
A number of stories have emerged recently where long-term friends that had been flatting together combined their funds and bought a house together and even two couples that were renting in one home purchased a property together. In such scenarios, having another person, or another couple, to contribute to purchasing the home made it possible.
While such a situation is not ideal or suitable for everyone, this creative thinking and collaboration can be beneficial for those concerned. Key things to be mindful of before you make such a big commitment are:
- Have you lived together before? And for a substantial length of time? This will let you test your living compatibility, understand if you share the same cleanliness and home maintenance standards etc.
- Have you got a good relationship with the other person or people you’re considering purchasing a home with? It’s important you can communicate clearly and honestly and that you trust the other party.
- What is the contribution you are both bringing to the table? Are your financial situations and contributions even and if not, have you got a plan for this? Have you thought through the scenarios of what could happen in the future e.g., a party wants to exit the property, a couple separate, an illness etc. It’s recommended that you consult a lawyer for this arrangement.
- Are you in agreement with location, type of house and what the non-negotiables are for any home you would consider purchasing?
Also, in such situations, you may be able to access your KiwiSaver Account to help with the deposit for your first home, which can really help.
A little creative thinking can go a long way and help you achieve your goal of first home ownership. And it doesn’t have to be forever, but what it can do is set you up to eventually go your separate ways with an increased deposit allowing you to purchase your own home – a win/win situation.
If you’d like to learn more about creative ways to make your home purchase dream a reality, please get in touch. One of our experienced financial advisers can discuss options with you.