When it comes to property and owning a home, there is no shortage of myths and misconceptions. From people saying that it’s cheaper to rent than to own to others believing that if they can’t get their dream home now, why even buy a house at all. In this blog post, we’re going to debunk some of all those myths so they won’t hold you back anymore.


Myth 1: You need a 20 per cent deposit 

One of the most common misconceptions when it comes to the property market is the belief that you always need a 20 per cent deposit. This does not apply to first home buyers. In fact, first home buyers only need a 10 per cent deposit, and in some cases you can get away with just a 5 per cent deposit! Feeling a bit more optimistic now? Great! We’ll go more in depth about this later on so hang tight!


Myth 2: You should only buy your forever home

Wouldn’t it be brilliant if we could all live in a 10-bedroom house with marble countertops, mahogany floors and a big pool? Oh, and let’s throw in a walk in closet for good measure. Don’t worry, you don’t need to buy your dream home (or your forever home) from the get go. In fact, most people (not even the richest of the richest) do this. Buying a starter home as a stepping stone onto the property ladder can be a financially savvy decision. It allows you to build equity and gain experience in homeownership, and most importantly; you get on the ladder. Then once you’re on the Forbes 500 list, you can get that pool of yours.


Myth 3: It’s cheaper to rent than to own a home 

Contrary to popular belief, owning a home can often be more cost-effective than renting in the long run. While the upfront costs of purchasing a home may seem substantial, monthly mortgage payments can be comparable – or even lower – than monthly rental expenses. Additionally, as property values increase, homeowners benefit from building equity and potentially enjoy a more stable housing cost compared to fluctuating rental prices.


Myth 4: You can’t get a home loan if you have other debt

This myth suggests that having other forms of debt, such as a car loan, disqualifies you from getting a home loan. In reality, banks consider various factors when assessing mortgage applications. While existing debt is a consideration, it does not necessarily exclude someone from securing a home loan. Banks often evaluate the overall financial picture, including income, credit history, and the borrower’s ability to manage multiple financial obligations.


Myth 5: I don’t make enough money (I have to be rich to buy a home) 

The misconception that one must be ultra rich to purchase a home is a significant barrier for many potential buyers. In truth, there are various entry points into the property market, and financial circumstances can be addressed strategically. Government schemes, shared ownership arrangements, and careful financial planning can make homeownership accessible to a broader range of income levels. With realistic budgeting and a clear understanding of available options, people with various incomes can become homeowners.

We hope that this post has been helpful and given you a bit of confidence. If you have been telling yourself one or perhaps several of these myths (or maybe you are telling yourself over and over again that you just will never be able to buy a home), it’s time to retire these stories that you tell yourself. And instead of just assuming something (e.g. I need a 20 per cent deposit), do a bit of research or ask around to see if it’s actually true.



Everything shared in this blog post is general financial advice. For financial advice tailored to you, please book a kōrero with us.