Welcome to That Home Loan Hub, your ultimate guide to mastering the world of home loans and property. I'm Zebunisso Alimova, here to simplify the complexities of real estate and provide you with expert insights and the latest trends.
Whether you're a first-time homebuyer, an experienced investor, or simply curious about the property market, this podcast is for you. Join me each week as we unlock the secrets to property success and help you make informed decisions. Let's dive into the world of property together!
We've got a client. They bought a house. All exciting. Mm-hmm. They've got the keys. They're moving. Mm-hmm. What happens then? Yeah.
SPEAKER_01
Let's talk about that. Let's talk about what happens after. Or like a couple key things to think about after you buy your first home. Alright. Um, so one thing I thought about was your Kiwi Saver. So you've used up your Kiwi Saver to purchase your first home as your deposit.
Now you can't touch it anymore until you're 65. Yeah. So imagine you're, you know, early 30s and now you've got another 35 years of Kiwi Saver. What do you do with it? So it's a good time to review the fund you're in. This is not financial advice because I'm not a KiwiSaver expert, but good time to, you know, review the fund because when you're using it to buy your first home, you're there's genuinely a first home buyer fund that most providers have.
SPEAKER_00
Which is non-aggressive, correct? Usually, you know, low risk because you don't want to risk losing your whole deposit if you're about to buy a house. So normally you would be on a low risk profile, but it wouldn't generate you as much return. But once you bought a house, then you could reconsider what sort of fund you in. Yeah. Awesome.
SPEAKER_01
Yeah, so just to reconsider that and just make sure that you know it's working the way you want it to work.
SPEAKER_00
Interesting. Yeah, I don't think a lot of people think of that. No. Okay, cool. Number two. Number two.
SPEAKER_01
Number two, uh obviously you have to have home insurance, right? When you buy your home. Absolute must. It's a must.
It's a condition of the banks or the lenders as well to have insurance. But have you got insurance for yourself?
SPEAKER_00
So that's what. Hold on. What wait. What is insurance for yourself? What does it mean?
SPEAKER_01
Well, let's just say if something happens to you, right? You get sick or something and you're not able to work, you're not able to earn an income, that income is to pay for that loan. ACC will cover me. Yeah, ACC will cover for accidents. So just to point that, ACC, if you have an accident, they'll cover 80%. But if you get sick, they're not going to cover you.
SPEAKER_00
Yeah, absolutely. And this is something really important to note because look, me as an insurance advisor, when I talk to my clients and I talk to them about the importance of having income protection, mortgage protection, we often get that response. ACC will cover me. ACC will not cover you if you've got cancer. Yeah. If you just you know had cancer as a result of um sun exposure, for instance. You know, that's not an ACC related topic.
SPEAKER_01
No. Yeah, so sickness more. So so then um, yeah, imagine you know, you um have an asset that's close to a million dollars that you probably have a debt of 80 to 90 percent, and you get sick and you can't pay it. That'd be pretty crap if you had to sell that asset after you work
so hard for it. So, yeah, it's to think about having some life insurance, income protection, and we have amazing insurance advisors around that can help you.
SPEAKER_00
Yeah, so apart from me as an insurance advisor, we also have a fantastic team member, Rebecca. She's joined our crowd a few months ago. If you've missed an episode with me and Rebecca, you know, go a few episodes ago, search for it. We've covered some important topics there. But yeah, absolutely something to think about when you buy a house is get that insurance reviewed. If you already have something in place, fantastic, but get it reviewed. If you don't have anything at all, you should be getting something. Yeah. Because you never know what's around the corner. Yeah.
SPEAKER_01
And then point three, I thought I'll just do three points. Point three, obviously, when you buy a house, we recommend that you have some cash set aside, right? Like to pay for the registered valuation and um lawyers' fees and
things like that. After buying the house, I yeah, recommendation is also to have that at least two mortgage repayments saved, tucked away in a rainy day account, sort of thing. That just gives you a bit of leverage in case there's a glitch or something in terms of your pay, or if you like went on a holiday and you're like, oh, actually, I want to skip that mortgage payment, but because I've got you know two pay saved, sort of thing.
SPEAKER_00
Wow, you're very kind to them. You're saying two. Oh, yeah. I usually say, I usually say three months. You should have a buff off at least three months. And I'll tell you the reason why I said that. Because again, with insurances, when you get a mortgage insurance, you've got a stand down period. And you can wait either four weeks, eight weeks, or 13 weeks for the insurance to kick off paying. If you wait four weeks, your insurance is usually more expensive. If we wait eight weeks, it's a bit cheaper. 13 weeks, even cheaper. So normally I say if you have at least three months buffer for your mortgage protection, for your mortgage repayments, and then mortgage protection kicks in, that's usually a good balance to have. So, yeah, absolutely. Calculate what your repayments mine was two pays, so yeah, when you go on holiday, not when you get sick. Yeah, so if we stuck with at least two to three months, so two repayments to three months repayments, you guys will be in a very safe way. So the way you, you know, worked hard and saved that money for your first home deposit, you know you can do this again. So go a little bit hard, you know, skip on those takeaways, skip on those coffees, put the money aside because again, you just don't know what's gonna happen. You know, we had a client that bought a house, the water tank blew up. We had a client that bought a house and discovered holes in the roof, you know. So all sorts of things can happen and you need
extra buffers. So don't spend all of your money as a deposit. And this is where, you know, we try to usually pull you back and go, don't be emotional, don't buy the house with emotion because you will overspend it. Correct. Yeah, awesome. I really love your three points. This is great. Okay, do a quick recap of just the subject line. Three points. Go.
SPEAKER_01
Okay, three points. Review your Kiwi Saver. Done. Make sure you have some sort of protection for yourself, so life insurance, and then have some buffer in your savings account.
SPEAKER_00
Love it, absolutely love it. Awesome. Thank you, Kunch, so much. And for those that have missed, Kunch and I actually did a whole entire season of episodes on how to buy your first home. And this is a sort of a more of a catch on on to that,
if what happens after. So if you are looking to buy your first home, don't worry, there are episodes for you. So just go back a little bit behind and have a listen. Search through those hundred hundreds of episodes that we've done. Use the keywords. Use the keywords. Awesome. Thank you guys so much and talk soon. Thanks. Bye. Bye.
