We’re going on a House Hunt: Part One

Since leaving home in 2008, a freshly minted 18 year old I’ve paid more than $60,000 on rent. Averaging out to around $7,500 a year just to have a roof over my head. Got to admit, I’m a bit despondent seeing the figures in black and white. That total is more than I earn a year.

Sure, the Aucklanders out there are probably screaming ‘that’s a bargain’, but for someone who isn’t infatuated with the City of Sails and enjoys a life of simple existence, it doesn’t sit well with me.

So I plan to do something about it. I’m going to buy a house. I think.

There’s no denying my frugal ways so contemplating dropping half a million on a single asset is daunting, and I do find myself constantly weighing up the opportunity cost of that kind of cash. But given interests rates at the moment, the possibility of them dropping even lower in October, and the recent increase in HomeStart grant house price limit its a bit of a no-brainer. Articles like this don’t help that confidence, but with the ability to pay less to service a mortgage than I do renting I’d say…

Now, how do I actually buy a house? I’m guessing this sums it up pretty well:

I might have some research in front of me, or I could just go with the classic Kiwi financial approach of trial and error. Heck, it’s only the biggest asset I’ll ever buy, why not just ‘give it a nudge’? Anyone who knows me knows that a DIY approach will not be happening. Repainting the thing once I’ve bought it sure, but the act of purchasing it, I don’t think I’ll be flying solo - I’ll be calling in the big guns for reinforcement #BRLSquad.

That or I just keep renting I guess and you’ll here from me in another eight years time with more complaining. Apologies in advance if that’s the case. To try and avoid this I’ve identified a few logical steps to take on this endeavour:

• Work out what I want
• Work out what I can afford
• Venn diagram the two to drag myself into reality
• Go to open homes
• Sort finances with the bank
• Make an offer with the lawyer
• Homeowner

Oversimplified sure, but that’s the crux of it right? Probably not, but we’re about to find out because we’re going on a house hunt!