Cooking the Books: Will the housing market changes be enough to help first home buyers?
It’s not an easy time to be a first home buyer.
Affordability – as measured by the average house price to household income – hit its worst point in at least 17 years
We’re looking to buy in Auckland on the North Shore, particularly around the Stanmore Bay area. Our ideal budget was $880k, but that’s risen to our maximum of $950k.
In the time we first started looking for a home, prices and seller expectations have risen over $100,000 – growing faster than we can save to keep up with the deposit required.
After Covid the median house price has raised another $100k or so, which has now priced us out of the market.
So here we sit, with a phat deposit, two incomes and a dream … to one day be able to afford an average house in Dunedin.
Now I am at the maximum amount I can borrow. I’m approved up to a purchase price of $500,000 with a 20 per cent deposit on under $75,000 income.
I’ve considered asking friends to buy with me, but it seems too much of a risk and I doubt we’d get on as flatmates, even though couples I know have a much easier time getting mortgages and enough for a deposit.
My KiwiSaver alone would only be $26k as it was only three years ago my income was stable and high enough to be able to lock some away where I can’t really touch it.
I might have deposit help from family, but I’m not sure yet.
The government grants only apply to homes under a certain price cap, which while recently raised is still unrealistically low unless I want to sleep in my kitchen.
I’ve been told I’m “in a good position” to purchase at around $650,000, maybe $700,000.
My family and I live north of Albany and have lived here since we were babies.
I’d love to stay close so I can help my mum (we lost dad a couple of years back) but I know I can’t afford to live in the place I grew up so I am looking at houses from Wellsford to South Auckland – basically anywhere I can maybe afford.
‘Something will come up’ is what I hear on the daily and now I have been evicted as the landlord wants to move in.
This is now going to eat into my tight budget to find another rental while I still try to find a place to call home.
If house prices dropped by 20 per cent, as per whispers from so-called experts, that would mean older people like me will maybe have a roof over our heads in retirement.
The alternative scares me and causes many sleepless nights – not being able to afford anywhere to live and potentially living in a cardboard box on the side of the road.
There are so many females in my position.