Our Own house ? ...

Hi Everyone

Need some advice please We got offered a house from my partners parents, this happened awhile ago and we are still deciding about it, but it has now can to the time where we have to decided about it.

We are both 19, got our first baby on the way and are currently renting. We worked out that if we are to own our own home and to pay rates and EVERYTHING else included in our fortnightly budget we only have $64 left (This is with putting no money into savings). I know that once bubs arrives we will get help from Winz and get the weekly payment to help out with the baby but im not too sure how much we will get untill the time comes.

If we are to stay in our rental we have $140 a fortnight left also before we get the weekly payments from Winz.

So my questions is...what would u do in my situation, would you rather own your own home at 19 and not be able to do the simplest things for at least 5 years, ( for example: maybe going away for a night) or to rent and be able to do quite a lot of things and then own your own home later on down the track..?

Firstly Im still young only 21-

I think you need to look at the bigger picture. how much will you be getting from WINZ? could you maybe do some parttime work when DP is at home to be with the baby? how much will you actually get to go out with a baby? could you look at getting a smaller, cheaper house (or unit) to make things easier?

My parents helped us get into our first home and yes it was hard at first. we have been here now 10months and things are getting easier (money wises) plus I love the fact that we are putting money in our future and not just living day-to-day (and paying the landlords mortgage!)

if it was me i would make it work and take the offer of help but you need to look at all your opinions and work out what is right for your family

Edited by __H__

-H- , Im not too sure how much we would be getting from Winz, im guessing around $100 a week if not more from them. Also the house we have been offered they currently own as a rental and are also selling their own house, so when they sell their's their rental get's sold aswell, so that's why it's either we take this house or we not take the deal really.

It's a good house compared to what is on the market down here atm, it does need work done to it, but everyone has to start somewhere My partner really wants to take the offer and just make do with the money we do have left but im not too sure, i know i would kinda rather be able to do some things and then settle down in a house maybe at the age of 23 or something around there

Take the house - when will you get another chance to? Definitely not for a while once bubs is here.

We bought ours when I was just 20, best decision we ever made. Sure we've lived on bread at times and had to find money from places but I'd rather be keeping an asset than paying someone else money. (Oh and we had less than that for the first 2 years, so it's doable).

I do kinda agree just to jump in and do it but you really need to work out what you are entitled too thru WFF etc as $64 for a 2 week period is pretty tight with a NB.

Umm, the other thing is that you could always look at going interest only for a couple of years. I know that you aren't actually paying off any of your mortgage but you still own your own home and have a wee bit more spare.

We do this as we tend to make lump sum payments off our mortgage.

I agree that its great to get in the market early. I brought my first home at 18 in a okish area for a great price and have worked my way up to a awesome house in a good area.

Bobbie, the $64 is after paying all the bills,insurance,gas,food, everything apart from putting money away for savings and things like Rego and Doctors and all that

oh , and from personal experience, the longer you put off getting into your own home , the harder it is to do .

As someone who got on the property ladder and then got off again to go overseas I can say from experience that the longer you leave it the harder it is to get on / back on.

The market will change in the next 5yrs and it may mean you just simply wont be able to afford it. Do you have a deposit or is that part of the offer that you dont need one? If you do have a deposit then it might not go as far as you need it to in 5yrs time.

With a little extra from WINZ it sounds like you'll have around $100 a fortnight for incidentals, which is actually plenty, if all your costs have been accounted for. You wont be able to have random shopping spree's and fancy holidays but TBH those are nothing compared to the security of owning your own home, hopefully you'll be able to add value to it and in 5yrs or 10yrs sell it and upgrade.

As long as there are no strings (would the IL's have an issue if you decided to sell in a few years??) then most definately go for it. Having a little person in your life tends to curb the ability to just go away for a weekend / have a big night out etc so in reality it might not even be that much of a sacrifice and you'll get something great in return!!

Take the offer, provided that you can get the finance you need to buy it! The first 5 years may be tough, but at the end of the day you have something to show for it.

I'm 26 and we bought our first house 2 years ago, so I was 24 then, and we are on high interest rates (9.3%) so things are tight, but we manage. Sure we don't have flash things, and I can't buy clothes I see just cos I want them, we haven't been away at all, not cos we can't afford it but cos it's not practical at the moment. I can't wait for next February when our fixed rate is up and we should be around $100 a week better off. I work part-time when grandparents and DH can watch the girls.

If you go to the WFF calculator, definitely calculate how much money you will get, because you will need to know this in your mortgage application.

Personally, I'd wait a bit longer.
DP is a property investor and has been mentored but NZ's one and only property anaylist, Keiran Trass and the predictions are (based on the past trends of the property cycle) that house prices are going to drop even further. They have to so they balance with average wages. Some rule of thumb they use.

ANYWAYS...

If they're going to buy you a house that'd be awesome, but house prices and interest rates are going to drop eve further. Hold out for as long as you can, then go for it.

If they can buy a mortgagee property then that'll b even better. Waaaaaaaaay cheaper!