1. A house that matches your entire wish list doesn’t exist.  It will be a compromise, so go for one that meets 75% of what you want and get on with it. Ignore if you just won lotto.

2. There’s a good chance you won’t be in your first house forever. Knowing this fact influences everything you do in relation to the house — what you spend getting into it and what you spend on it. Since you’ll be moving on at some stage, focus on reducing the mortgage as quick as you can before other priorities (like kids) come along and bugger your cash flow.

3. First home buyers tend to be young people with energy so consider buying something you can afford, do up and move on. I’ve done that a few times now and made reasonable money each time. Just be careful to learn the difference between renovations that will be costly (re-clad a leaky house) and those that will be cheaper (paint and tidying gardens up).

4. Just because the bank says you can borrow a certain amount doesn’t mean you have to use all of it.

5. You need to understand why buying a bad house in a good street is generally better than buying a good house in a crummy street. Learn the difference. Look at a few and compare. Why do real estate agents always bang on about ‘location’? Because it makes a difference in the end.

 

About Campbell Hastie

Cam is one half of Auckland based mortgage brokers, The Go 2 Guys.

He makes a living by sharing what he knows about mortgages with people, arranging mortgages for people and then insuring people.

He doesn't claim to know everything about mortgages himself which is why he teamed up with David Mercer — hence the ‘2’ in Go 2 Guys.

He writes posts regularly on his blog and has been told he has an ability to share his knowledge in a simple and sometimes memorable way.

Feel free to comment and ask any questions. Contact Campbell Hastie m: 027 697 7789.

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