Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Homeownership Elusive for Single Buyers

Buying a first home is the most difficult it’s ever been for single buyers, in a market where home ownership rates have fallen to their lowest levels in 60 years.

A Stocktake of New Zealand’s Housing, a report commissioned by the Government in late 2017 and released earlier this year, has identified a number of reasons for declining home ownership including; a fast-growing population, fewer new homes being built and house prices rising faster than incomes.

Craig Pope, of Pope & Co. Mortgages believes single people wanting to buy a home on their own are a hidden statistic in our housing market, with very few buyers able to secure a mortgage big enough to buy a house under their own steam - what was possible even 10 years ago is almost impossible today.

“We’re finding that unless a person has a very high income, it’s difficult to obtain enough lending to cover the budget needed in today's market . House prices have risen, mortgages are larger, and banks want to see sizeable household income to service the debt, ideally with contributions from two people, even with a large deposit, before they approve lending. They want to be confident that mortgage repayments will be made,” says Craig Pope.

According to QV, in the 12 months to February 2018, average house values rose by 7.6 percent to $764,020 in Wellington City, and 13.9 percent to $546,371 in Kapiti.

“Wellington’s housing market has been very strong. However, the climbing prices are squeezing out lone buyers who may have been able to afford an ‘entry-level’ 2 bedroom property 10 years ago. Trade Me’s latest Property Index has reported that a standard one - two bedroom home in Wellington was worth $437,800 in January. Realistically a mortgage of this size is out of reach of single buyers,” says Craig Pope.

If you are a single buyer, and determined to get on the property ladder, there are some options to consider.

“Look further afield for a first home if you’re happy to commute to work. Consider pooling resources - I recently met with a brother and sister who decided to buy a home together. Investing with trusted friends is another option. The key here is to explore all possible avenues to see if there is another way to home ownership,” says Craig Pope.

About Pope & Co.
Pope & Co. Mortgages is located upstairs at 18 Seaview Road, Paraparaumu Beach.

Established in 2010, Pope & Co. Mortgages (previously Craig Pope Mortgages and Insurance) is an award-winning mortgage broker and advice service. The Pope & Co. team provide a 7-day service covering Wellington, the Hutt Valley, Porirua, Kapiti, and the Wairarapa and further from their offices on the Kapiti Coast and in central Wellington.

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Perils Of Using PPPs To Meet Auckland’s Roading Needs

More than once, the coalition government has ruled out using public private partnerships (PPPs) to fund the country’s infrastructure needs in health and education – apparently private profiteering in those areas is recognised as being undesirable. Not the same story though with transport, and the reasons for that differential treatment are mystifying. Earlier today, Transport Minister Phil Twyford announced that one of two new roads that the government would be co-financing would be a PPP – namely, the Penlink project that will link the northern motorway to the Whangaparaoa Peninsula.



HiveMind: Fair Enough? How Should New Zealanders Be Taxed?

Have Your Say - Scoop and PEP invite you to share your issues, ideas and perspectives on the NZ tax system with other New Zealanders using Scoop’s HiveMind tool. This Tax HiveMind is intended to complement and feed into the review being run by the Government-appointed Tax Working Group (TWG), which is looking at the fairness, balance and structure of the tax system with a 10-year time horizon. More>>


Gordon Campbell: On Thompson + Clark & Russia’s World Cup

Daily, the coalition government keeps running into examples of the toxic legacy left behind by National – and just as regularly, even the simple fixes are proving stubbornly difficult to enact. Take the case of the security firm Thompson + Clark ... More>>


Gordon Campbell: On The GCSB’s Security Hang-Up With Russia

So our GCSB has chimed in, alongside its British, Australian and US allies, with warnings about a “fresh wave” of Russian cyber attacks, although the warning has been curiously framed. More>>


PM's Europe Trip: CHOGM & Bilateral Meetings

Prime Minister Jacinda Ardern is in Europe for the Commonwealth Heads of Government Meeting (CHOGM) in London and meetings with counterparts in Paris and Berlin. More>>


Addressing Climate Change: No New Offshore Exploration Permits

The Coalition Government is taking an important step to address climate change and create a clean, green and sustainable future for New Zealand, Prime Minister Jacinda Ardern announced today. More>>


Road Safety Summit: Actions To Improve Identified

The Local Government Road Safety Summit held last week identified actions that will lead to lasting changes to road safety in New Zealand, says Associate Transport Minister Julie Anne Genter. More>>





Featured InfoPages