Wellington, Tuesday 26 June 2018 - Middle-income families can still get on the property ladder in the Wellington region, despite the average home value continuing to rise.

QV figures show the average house value across the region in May 2018 was $633,759, with the latest home affordability statistics from MBIE revealing 72.49% of local renters are unable to ‘comfortably afford’ a new home.

Craig Pope, Director of Wellington-based Pope & Co. Mortgages says home ownership is still a realistic goal for first-home buyers in Wellington if they’re prepared to look further afield.

“Kapiti, Upper Hutt, Wainuiomata and South Wairarapa are all in an easy commuting distance from Wellington CBD, and there are affordable first homes - under $500,000 - available in each of these areas. All these areas also offer great family living.

“Nationwide close to 80% of renters are unable to ‘comfortably afford’ a new home, but Wellington is still well below national averages, indicating housing affordability is still within reach,” says Craig Pope.

Major infrastructure investment, including Transmission Gully, due to open in 2020 will further reduce the commute and open the northern Wellington region even further.

“A longer commute is just one compromise you can make to buy your first home - use the time to your benefit; maybe upskill or get some work done. Consider working longer hours Monday - Thursday and take Friday off (if your employer allows) or see if you can work from home one day a week or try a local coworking space.

“Wellington has good public transport links, particularly by rail, making it quick and easy to get into the CBD. Our road network will be world-class once Transmission Gully is open - now’s the time for first home buyers to be looking beyond Wellington city,” says Craig Pope.

Andrea Corrigan, Bayleys Real Estate agent, believes home ownership is a realistic goal.

“I recently sold a three-bedroom family home in Raumati Beach for $414,000. It’s important buyers maintain perspective; there are many things you can compromise on, like location or buying a house that needs some renovation.

“My advice is to get on the ladder and find a property that you can stay in for five years or more and add value to – think minor renovations like a kitchen/bathroom upgrade, renewing the carpet or adding simple landscaping to a garden. Doing this will help you move up”.

Craig Pope also recommends perspective first-home buyers set achievable budgets.
“KiwiSaver is a fantastic way to build your savings, particularly when you combine the power of two funds. If you want to buy a home, set some savings goals and work out a realistic budget. We always recommend people don’t overextend themselves because it’s important you still enjoy life.

“When you start meeting those savings goals, work with a professional advisor to establish what you can afford - start looking in the neighbourhoods that meet your budget and suit you - whether that’s being close to schools, or transport links”.

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