We are young and we bought a house – this is how we did it

Buying your first home in today’s market is no small thing, but it can be done. Ryan and Sinead Fisher are a test, and they did it without going to the “mom and dad bank.”

When the Fishers, who were in their early 20s at the time, first decided that they wanted to buy their own home when they turned 30, they realized they would have to make some sacrifices to achieve that dream.

Over the next several years, they did just that to first save the deposit they needed and then find and insure a home within their price range.

A critical sacrifice was that when newlyweds, Ryan Fisher, a prop maker in the film industry, and Sinead Fisher, an administrator at the University of Auckland, decided to continue living with other people rather than moving into a rental for a period. honeymooners in yours.

This helped his savings significantly. But while buying a home was always their ultimate goal, they had a couple of other goals, including financing a long honeymoon abroad, to achieve first.

Focusing on the end goal

By 2016, they had returned from their honeymoon, were living in a rental at Three Kings with three roommates, and felt the time was right to take action and save on the house deposit.

His flattening strategy played an important role in building his deposit. Ryan Fisher says they were paying $ 293 plus expenses per week for a beautiful large room with a bathroom, a garage for his workshop, and plenty of living and outdoor space.

“Comparable quality venues that would have worked for just the two of us, meaning small renovated units, cost around $ 450 to $ 500 per week with expenses, so we probably saved around $ 150 to $ 200 per week on the spot. (if you compare apples to apples in terms of quality of property plus a garage). “

But, since they were starting from scratch and did not turn to family for help, they needed to be disciplined in all areas of spending in their lives to further boost their savings.

Since Ryan Fisher is self-employed, it has always been necessary to have a budget and stick to it. With the deposit in mind, the couple went to another level. They set spending limits and became super savvy food shoppers, buying only what they needed based on the meal plans they made each week.

Also, at the end of the fiscal year, they would do an annual re-evaluation of expenses like insurance and reorganize them if necessary to make sure they stayed in the appropriate cost range for their needs, but on the cheaper end.

Sinead Fisher says that people have different money personalities and she has always been an instinctive saver, which makes it easier. But having plans in place and sticking to them also helped.

They always planned to adhere to the Kainga Ora First Home Grant price cap for Auckland, which is $ 600,000 for older properties and $ 650,000 for new properties. However, initially, his deposit goal was just $ 50,000, including his KiwiSaver withdrawals and any first-time homebuyer grants.

“We had a bit of a reality check about 18 months after the purchase and we adjusted our figures to something more realistic,” says Ryan Fisher.

“We knew we were going to raise $ 600,000 for the property we wanted in the areas we wanted, but we didn’t feel comfortable taking on more than $ 500,000 in mortgages. Therefore, the $ 100,000 shortfall was our new goal for a full deposit, again, including our KiwiSaver and grant figures. “

Sort finances

By early 2020, their sacrifices had paid off and they had come to a position where they had raised a deposit of $ 90,000 (from their savings, KiwiSaver withdrawals, and First Home Grant) and were finally able to embark on the process of purchasing their first house.

However, it was not easy to navigate from there. First, Ryan Fisher’s self-employed status was unattractive to many banks. “It was compounded by a relatively low deposit, a hot market and Covid, which made banks mistrust my job prospects,” he says.

For self-employed applicants, banks want to see all documentation and business data for the previous three years. Fortunately, the Fisher’s penchant for budget served them well here.

“I had all the documentation they needed (spreadsheets, projected income data, etc.) in order. Thanks to all that paperwork, I was able to show that I was organized and reliable, even though I was working on my own. “

However, they decided to seek the help of a mortgage counselor. Eventually their advisor, Hamish Patel of Mortgages Online, was able to secure them a pre-approved home loan from Westpac. It had a fixed two-year rate of 2.94 percent, compared to the two-year fixed rate of 4.5 percent offered by their own bank.

The search for the right home

However, as the pieces fell into place, his mission was still far from over. Complying with Auckland’s price caps meant that they had to limit their search to parts of the south and west of Auckland.

Initially, South Auckland was their preference because it was possible to get properties with more land, but they felt travel times would have been too long, so they narrowed their search to West Auckland. The fact that one of the grant conditions prohibited them from buying at auctions further reduced the number of homes they could see.

Sinead Fisher says they quickly realized that it was necessary to have a serious conversation about their expectations and what they were willing to commit to.

“We tried to phase out what we were realistically looking for so we knew exactly what we had to have and what we were willing to do without. Having a garage was crucial for Ryan. So we let go of the idea of ​​a vegetable garden and having a piece of land to capitalize on, but not the garage. Then we found out that the vast majority of townhouses being built under the Kiwibuild scheme don’t have a garage, which means we had to look for slightly older houses. “

All of these restrictions were challenging, but they set out to thoroughly research the market and look for good potential options. After starting in early 2020, the first lockout provided Ryan Fisher with an opportunity to approach it as a full-time job. Once Auckland moved to Level 2, they came to the open houses of properties that they considered serious, tough prospects.

Buyers were in force, competition was feverish, and prices kept climbing, which was both intimidating and frustrating. But they persevered and, after attending some 50 open houses, they secured their first home in June 2020.

It is a two bedroom, brick, block and decramastic tile attached unit (with a garage) in New Lynn. Built in 1975, it underwent a cheap and nasty renovation at some point and needed some work done. But it met all of their requirements and they were able to buy it for $ 590,000.

Commit but don’t give up

The couple feel lucky that Ryan Fisher is a handyman and has been able to do much of the work on the property himself.

Also, as finances remain tight, they have rented one of the rooms to a roommate for $ 160 a week. “We are pricing it cheaper as there is still a lot of work to do,” he says. “Once the place is well arranged, we will raise that price at a rate more comparable to the market. Every little bit helps. “

But, eight months after their purchase, they are still delighted to have achieved their dream and to have bought their first home, when they were 28 years old, that is, before the age to which they aspired.

Despite their personal satisfaction, both Ryan and Sinead Fisher emphasize that they have feelings for all those who are renting but desperately want to buy a home of their own.

“It’s disheartening when the houses you’re looking at aren’t that great, but they still keep going up in price,” says Sinead Fisher.

“So it’s good to understand that you won’t get your dream home the first time, but you can compromise and buy a cheaper, not-so-nice place that helps you get into the market and is a stepping stone to a better home for a few years. then “.

While the couple have made the most of every opportunity that comes their way, they want to acknowledge that not everyone receives the same opportunities at the same time in their lives, adds Ryan Fisher.

“No one should allow our history to discourage them if their circumstances are different. If you’re in a chapter in life where shopping isn’t on the cards yet, that’s fine. Just persevere through your current challenges, doing everything you can in the meantime, and be confident that when that opportunity finally presents itself, you’ll be ready to jump. “