Save $300K When You Buy Your Next Property
Buying a family home is the biggest investment families are doing in New Zealand. What if you could save $300K when you buy your next property? This is almost 7 years’ average New Zealander salary. Let’s start with an example:
We consider a family of two persons (a mom and dad) who are both working and have a deposit of $200K. They could borrow $800K from the bank and buy a ready one-million-dollar house. Now we think they use $150K of their deposit and get a $600K mortgage from the bank, which enables them to buy a $750K property. Now they buy $750K property which needs $50K renovation. Usually, a $50K renovation will add $200K of value to the property and takes about 4 weeks. The first benefit is all renovation will be done based on family style. The second and most important one is total spending is $800K for property worth 950K or even $1m. Wait this is not the end of the story, when you borrow $150K from the bank you will pay back almost double around 300K in the next 30 years. This means for example mom or dad who earns an average New Zealand salary which is $56K (after tax $45K) needs to scarify 7 years of their hard earnings to pay this back. What if you could spend 7 years of earnings on something you love?
As usual, there is a caveat, it is not easy to buy the right property that by spending $50K you can increase its value by $200K. You should be extremely cautious & informed to buy a property that doesn’t have a structural problem and you can convert it into a beautiful warm, dry and bright family home with minimum spending. You need a project manager and property expert who can help you achieve your saving.
You can find some homes their value was increased even more than $200K on this page. If somebody wants to know further and get help about this you can contact me here. Again I stress that this approach is completely feasible, especially in the current market but needs very detailed knowledge and planning.