The average amount kiwis spend on their first home
There are a lot of people who cringe at the thought of trying to buy their first home. Some have given up on the idea altogether.
Aaand for good reason. The stats on house prices in NZ aren't great.
Our mates at junoinvesting.co.nz did some research and according to the latest figures from Flitch Ratings, when linked to income, New Zealand houses came out as the least affordable of the 22 countries analysed in the report.
Statistics from the Property Institute of New Zealand show that home ownership in the 30–39 year age bracket has dropped 13.6 per cent in just over a decade, and the trend is steadily growing.
Nationwide, the average price first-home buyers are paying in 2017 is $461,000. This average has increased by 2.4 per cent from 2016, and 15.25 per cent from 2014.
So, what can I do to improve our chance of buying a home we hear you ask...
Mortgage broker Campbell Hastie from Go2Guys says first-home buyers are strongly advised to buy with a partner or friend, because even a single person with a steady income of $85,000 would still struggle to be approved for a loan to buy a $650,000 house in the current market – even if they had a $65,000 deposit.
“People need to buddy up and buy with a mate or a partner – one income might not cut it, but two incomes probably will. There will probably be more deposit to throw in too, which is always helpful, even if the loan-to-value ratio doesn’t drop to 80 per cent,” he told Stuff.co.nz.
And apparently you shouldn't put off buying...
“The best time to buy is always now. House prices generally double in many parts of the country over a 10- to 12-year period regardless of what stage of the cycle you’re buying – and trying to second-guess the market by waiting till ‘the right time’ puts you at risk of paying more if you’re caught off-guard by a sudden surge in the market. Buy now.”