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From First Keys To Forever Home: Choosing Practicality Over Perks · That Home Loan Hub

• 0:10
  SPEAKER_00: Hello and welcome back to that Homlon Hub.
• 0:12
  SPEAKER_00: Kunch is my sidekick today.
• 0:14
  SPEAKER_00: Hello, Kunch.
• 0:15
  SPEAKER_00: Good morning.
• 0:16
  SPEAKER_00: Good morning.
• 0:17
  SPEAKER_00: What are we talking about today?
• 0:18
  SPEAKER_01: Oh, it's actually afternoon already.
• 0:19
  SPEAKER_01: Whoa.
• 0:20
  SPEAKER_01: Okay.
• 0:20
  SPEAKER_00: Afternoon.
• 0:21
  SPEAKER_01: Good afternoon.
• 0:22
  SPEAKER_01: Afternoon, people.
• 0:24
  SPEAKER_01: Uh, I thought we were um talk about a question that we had from one of our listeners.
• 0:30
  SPEAKER_01: So the question is what is better for first home buyers?
• 0:34
  SPEAKER_01: Convenience, lifestyle, or common sense and practicality?
• 0:39
  SPEAKER_01: Ooh.
• 0:41
  SPEAKER_01: We see a lot of, you know, first home buyers, and we get ones that will just pick any anything because it's within their budget and they want to get into the market.
• 0:52
  SPEAKER_01: And then we see ones who are like a little bit fussier, like wanting that uh flash renovated bathroom and kitchen and things like that as their first home.
• 1:05
  SPEAKER_01: So we've seen both sides.
• 1:07
  SPEAKER_01: So we've seen the convenience lifestyle, and then we've seen the common sense practicality.
• 1:15
  SPEAKER_00: What was your first home?
• 1:16
  SPEAKER_00: What did you do?
• 1:17
  SPEAKER_01: Mine was common sense and practicality, I think.
• 1:20
  SPEAKER_01: So was mine.
• 1:21
  SPEAKER_01: Yeah.
• 1:22
  SPEAKER_01: It was what I could afford.
• 1:23
  SPEAKER_01: Same.
• 1:23
  SPEAKER_01: Like the bank gave me, I think we were pre-approved for 300k at the time.
• 1:29
  SPEAKER_01: And I was like, okay, this is my budget, 300.
• 1:32
  SPEAKER_01: That's not gonna go anywhere these days now.
• 1:34
  SPEAKER_01: No.
• 1:35
  SPEAKER_01: But we found something for the four of us.
• 1:37
  SPEAKER_01: We found um an 80-meter square house, um, two-bedroom, small um living and kitchen, but we made it work.
• 1:47
  SPEAKER_01: And was yours, it was ours, and we got it because yeah, it was common sense within our price range, and it was practical for us.
• 1:56
  SPEAKER_00: Yeah, I see, I see your point.
• 1:58
  SPEAKER_00: Okay, yep.
• 1:59
  SPEAKER_00: So my one was the same, it was six to nine square meters.
• 2:02
  SPEAKER_01: Well, even smaller, even smaller, it was three bedroom.
• 2:05
  SPEAKER_01: Oh, really?
• 2:06
  SPEAKER_00: I rented out two bedrooms.
• 2:08
  SPEAKER_00: So you had borders.
• 2:09
  SPEAKER_00: I had borders, real ones, yeah, real borders, and uh, and that helped us to get on the ladder, yeah.
• 2:17
  SPEAKER_00: Helped us to get was our minimum budget that we had.
• 2:20
  SPEAKER_00: And I of course I wanted a brand new house.
• 2:23
  SPEAKER_00: Oh, who doesn't?
• 2:24
  SPEAKER_00: I did too, but that wasn't gonna happen.
• 2:27
  SPEAKER_00: No, my brand new house only happened was the house number four.
• 2:31
  SPEAKER_00: Okay, yeah.
• 2:32
  SPEAKER_00: So what about you?
• 2:34
  SPEAKER_00: House number two.
• 2:35
  SPEAKER_00: See?
• 2:36
  SPEAKER_00: You went from that to new.
• 2:38
  SPEAKER_00: Yeah.
• 2:38
  SPEAKER_00: Versus we went from that house.
• 2:40
  SPEAKER_00: I had my firstborn there.
• 2:42
  SPEAKER_00: It's his birthday today.
• 2:43
  SPEAKER_00: Yeah, happy birthday, Atlanta.
• 2:44
  SPEAKER_00: Um, I had my I was just reminiscing about it yesterday that you know, um, about that house and how did we make it fit?
• 2:50
  SPEAKER_00: I had to get rid of one of the flatmates.
• 2:52
  SPEAKER_00: One remained.
• 2:54
  SPEAKER_00: And because my mom came and stayed with us for a little bit to help out, I think for the first three weeks.
• 2:59
  SPEAKER_00: And she's here now, she's back here now, and she's back here, and um, yeah, and that house was really small and little, but it's what we could afford.
• 3:06
  SPEAKER_00: And then from there we went to a slightly bigger house around the corner, and then from there we moved cities from Palmy to Parpromu.
• 3:13
  SPEAKER_00: And that house was much newer and more expensive.
• 3:16
  SPEAKER_00: But I always wanted to build, I wanted a new house, and that's when we build in Why Can I?
• 3:21
  SPEAKER_00: So house number four was the one we build, and often that reminds to our clients that look, yeah, everybody wants to have a flash house, everyone wants to have a lot of land or that lifestyle or live by the beach and have the view.
• 3:35
  SPEAKER_00: You know, you've got a section now is the view.
• 3:38
  SPEAKER_00: You can have picnics there, but um, you know, you you it's stages and ages in life.
• 3:46
  SPEAKER_00: Don't try to run before you walk or crawl.
• 3:48
  SPEAKER_00: Yeah, so sometimes you have to take those little steps to get to where you want to be.
• 3:54
  SPEAKER_00: Correct.
• 3:55
  SPEAKER_01: Yeah.
• 3:56
  SPEAKER_00: And you know, now I live in this house and it's much bigger than my first house.
• 4:00
  SPEAKER_00: Yeah.
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  SPEAKER_00: And I look back and I'm like, wow, but if I didn't buy that first house, I would not be sitting in this house right now.
• 4:08
  SPEAKER_01: Same.
• 4:08
  SPEAKER_01: Absolutely.
• 4:09
  SPEAKER_01: I'm I'm in the same mindset as well.
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  SPEAKER_01: Like had I had actually gone for the lifestyle of having the bigger house, the flashier house as my first home, I would not have been able to achieve um the home I have now.
• 4:27
  SPEAKER_01: Yeah.
• 4:27
  SPEAKER_01: Yeah.
• 4:28
  SPEAKER_01: Because I would we would have maxed ourselves out, um, and our loans repayments would have been, you know, too high for what our income was at the time, sort of thing.
• 4:37
  SPEAKER_00: So yeah.
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  SPEAKER_00: The financial pressures often are the cause of families falling apart.
• 4:43
  SPEAKER_00: Right.
• 4:44
  SPEAKER_00: And this is where we see the problems, where people overstretch themselves, yeah, buy something that's well beyond their means, and then they start having issues in their marriage.
• 4:54
  SPEAKER_00: Yeah.
• 4:55
  SPEAKER_00: Because they either have to work super hard so they don't see each other.
• 4:58
  SPEAKER_00: Yep.
• 4:59
  SPEAKER_00: Or um they start going, you know, why are you not working?
• 5:02
  SPEAKER_00: I'm working, I'm the only one pulling all this way.
• 5:04
  SPEAKER_00: Like you create all this extra stress that you wouldn't have had otherwise.
• 5:09
  SPEAKER_01: Yeah.
• 5:09
  SPEAKER_01: And that's why I tend to um tell my clients, you know, here's the um repayment calculator.
• 5:17
  SPEAKER_01: Yes, we've got a new pre-approved for this amount.
• 5:20
  SPEAKER_01: However, play with this calculator.
• 5:22
  SPEAKER_01: Work out if the repayments plus the rates plus the insurance works with your lifestyle.
• 5:29
  SPEAKER_01: Yeah.
• 5:30
  SPEAKER_01: Like how it is gonna change your lifestyle.
• 5:32
  SPEAKER_01: It absolutely will.
• 5:34
  SPEAKER_01: But how much of that lifestyle change are you comfortable with?
• 5:38
  SPEAKER_01: Is kind of what I keep telling everyone.
• 5:40
  SPEAKER_00: And also don't forget that insurances and rates are gonna continue to increase.
• 5:45
  SPEAKER_00: It's not gonna come down.
• 5:47
  SPEAKER_01: Yeah.
• 5:48
  SPEAKER_00: So, you know, at some point you will reach a point where you're like, crap, I can't buy steak this week because I have to pay more.
• 5:55
  SPEAKER_01: And and that's not what, you know, I want people to see to see people doing, or like, oh, we brought this house and I would have to sacrifice this.
• 6:04
  SPEAKER_01: Hence why it's like play with those calculators, you know, have a look at what your um weekly net income is and what you've got left over, and see if you're comfortable.
• 6:17
  SPEAKER_00: Yeah.
• 6:18
  SPEAKER_00: Budgeting, budgeting, budgeting, budgeting.
• 6:20
  SPEAKER_00: We talk a lot about that.
• 6:22
  SPEAKER_00: Yep.
• 6:22
  SPEAKER_00: Numbers tell a story, and you are the only one that can take responsibility for your life.
• 6:29
  SPEAKER_00: Okay.
• 6:30
  SPEAKER_00: We are there to advise you, we are there to help you.
• 6:33
  SPEAKER_00: It's almost like you know, last week I had my friend nutritionist Lucy, she came in and we talked about nutrition.
• 6:39
  SPEAKER_00: As a nutritionist, she can suggest what you need to be eating, but if you're not eating it, you're not doing it.
• 6:45
  SPEAKER_01: It's like you know you're meant to do it, but you're not, you know, you don't till you're like until until something happens to your life that scares you.
• 6:54
  SPEAKER_00: Yeah.
• 6:54
  SPEAKER_00: And then you go, oh my god, I have to take charge.
• 6:56
  SPEAKER_00: So, same with numbers, you know, same with money.
• 6:59
  SPEAKER_00: You should know how much money you're bringing in each week, and you should know how much money is coming out.
• 7:03
  SPEAKER_00: Yeah.
• 7:03
  SPEAKER_01: Hence why you've got to be practical when you select that first home.
• 7:09
  SPEAKER_00: I mean, of course, if you went somewhere where it's super cheap, I saw an article um on the weekend, a place somewhere between Dunedin and some other town, I completely forgot.
• 7:20
  SPEAKER_00: Um, you can buy a house under 400k.
• 7:23
  SPEAKER_00: And it's a and I've actually been in that area at my last trip in Dunedin in August.
• 7:29
  SPEAKER_00: It's much smaller than Otaki.
• 7:30
  SPEAKER_00: Yeah.
• 7:31
  SPEAKER_00: Close-knit community, you know, you've got fewer men, not that far away from the main city of Dunedin.
• 7:36
  SPEAKER_00: Yeah.
• 7:37
  SPEAKER_00: And you know, you can buy something under 400.
• 7:39
  SPEAKER_00: So, you know, unless you're willing to make sacrifices in your beginning of the journey, you're not gonna get to that big picture of what you want to achieve.
• 7:52
  SPEAKER_00: So you have to start small sometimes, yeah, and get to that bigger, have a bigger plan in mind.
• 7:58
  SPEAKER_00: Always have a bigger plan.
• 7:59
  SPEAKER_01: Always have that goal, the bigger goal.
• 8:01
  SPEAKER_01: Yeah, but this is like the for now goal, right?
• 8:03
  SPEAKER_01: You've got that foot in the door, you're in that market now, and then you go, okay, well, we'll hang tight for a couple of years, unless some people do want to just purchase their first home and stay in it forever.
• 8:15
  SPEAKER_01: So I guess that's where that whole lifestyle option would come into play.
• 8:20
  SPEAKER_01: Yeah.
• 8:21
  SPEAKER_00: Again, stages and ages, you know.
• 8:23
  SPEAKER_00: Sometimes we have clients that have gone overseas right after uni, traveled a lot, um, earned lots of money, have good deposits, come back, and they just want to buy a house to settle in.
• 8:35
  SPEAKER_00: They want to buy a house where they're gonna raise their family, they don't want to move, they love their friends and relatives around them.
• 8:43
  SPEAKER_00: So they know this is a forever home.
• 8:45
  SPEAKER_00: Yeah.
• 8:45
  SPEAKER_00: Um, then yeah, of course.
• 8:47
  SPEAKER_00: But if you are in your 20s and you know the world is your oyster and you don't know where you're gonna settle down, buy what you can.
• 8:55
  SPEAKER_00: Yeah, just get on the ladder and then have a five-year goal, ten-year goal, move from there.
• 9:00
  SPEAKER_00: And my first home that I have um in Palmerster North, I still have that house.
• 9:07
  SPEAKER_00: So cool.
• 9:08
  SPEAKER_00: I've got an amazing tenant in there, she's been there for 10 years, and she's like, I want to live here, I want to, I want to die here, I want to buy this house.
• 9:15
  SPEAKER_00: You know, so she loves that property, and she's been an amazing tenant, and um cool that property paid for itself by getting onto that letter early enough.
• 9:25
  SPEAKER_00: Yeah, so expectations and reality.
• 9:29
  SPEAKER_00: Yep, and what's a practicality?
• 9:31
  SPEAKER_00: Practicality, common sense, and practicality.
• 9:35
  SPEAKER_00: Yeah, common sense, awesome.
• 9:36
  SPEAKER_00: And if you want us to crunch your numbers, feel free to get um in touch with us.
• 9:41
  SPEAKER_00: We're here to help you and we're here to make you understand and see what you need to know to get ahead on the ladder.
• 9:47
  SPEAKER_00: Thank you guys for listening.
• 9:48
  SPEAKER_00: See you next time.
• 9:49
  SPEAKER_00: Thanks, bye.