Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

It's always hard to buy a home - Report

“Many people claim that housing has never been less affordable and that it is an impossible dream for today's young people”, says Andrew King, Executive Officer of the NZ Property Investors’ Federation. “While these well-meaning people believe they are standing up for young first home buyers, they may in fact be doing them a disservice.”

A new study shows that while house prices have risen over the last 30 years, other aspects have made it easier for people to get into their first home. This doesn't mean that it is easy to buy a home today, rather than it has always been difficult but for different reasons.

The NZ Property Investors' Federation study looked at the situation faced by first home buyers in each decade from 1985 to 2015. The study looked into how long it took to save for a deposit and how much of your income it took to service the mortgage.

The study found that while house prices had increased considerably faster than incomes, this was offset by lower mortgage interest rates and other factors like Kiwisaver, rental prices and lower income tax rates.

Factors have changed over the decades meaning it was easier to save a deposit in 1985 but harder to service the mortgage when compared to modern times.

"Commentators who state that it has never been less affordable to get into your first home are wrong and may inadvertently be doing a great disservice to first home buyers" says King.

"Being told that they cannot achieve home ownership is likely to stop potential first home buyers from even trying. Rather than standing up for first home buyers, those who continue to state that housing has never been less affordable may in fact be condemning them to being tenants for life".

"This is a poor outcome for the individual, but also a serious risk for New Zealand, as tenants are likely to be less financially secure in retirement and may require a higher level of taxpayer support".

ENDS

A full report of the NZPIF study is attached

NZPIF__Affordable_Housing_report_2017_PDF.pdf

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tornado Aftermath: More Storms Forecast For New Plymouth

Up to 30 homes were damaged Monday night when a tornado roared through a New Plymouth suburb last night , cutting power lines, tearing off roofs, and toppling trees. More>>

ALSO:

Government Investment Rejig: Sustainable Food & Fibre Futures Launched

Growing New Zealand’s food and fibre sectors sustainably and supporting a thriving economy are the hallmarks of a new investment programme announced today by Agriculture Minister Damien O’Connor. More>>

Dump Levy Options: Waste Work Programme Announced

Associate Environment Minister Eugenie Sage has announced a programme of work to take action on New Zealand’s long-neglected waste problems. More>>

ALSO:

Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>

ALSO:

Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>

ALSO: