First-home buyers are in prime position across outlying Wellington suburbs, with 32% of all sales in the region going to new buyers in the first months of 2017. In comparison, of all sales across New Zealand, only 20% of sales went to first home buyers, and 19% in Auckland.
CoreLogic, who recently released the data, say up to 50% of all sales in the Hutt Valley and Porirua went to first- home buyers.
When comparing Wellington to tougher markets like Auckland, this is an incredibly positive message for people who may have felt too scared to make the leap of faith and buy a property.
While Wellington’s house prices are generally seen as expensive, many areas are full of potential for people looking to buy their first home. Kapiti, Porirua, Upper Hutt, Wainuiomata, Stokes Valley and South Wairarapa are all within reach if buyers are willing to compromise on size and location of their desired property.
Despite the recent surges in local house prices, people looking for their first home can still make their dream a reality.
While there is a benchmark of a 10% minimum deposit, depending on the amount you have saved (KiwiSaver counts as savings!), a mortgage is a real possibility. Parents can also be guarantors to help boost the deposit amount.
Beyond the all important deposit there are other factors that we recommend buyers consider:
- Is your desired home close to public transport, will it be easy to get work?
- What schools are nearby? Even if you don’t have children, investing in somewhere that is near good schools and in the right zones will help increase the value in your property
- Is it close to supermarkets, cafes, shops, parks, culture, and sports facilities
- Is money being spent on infrastructure such as new community facilities, pool upgrades, and new parks
Alongside the price, these are important questions to consider as the answers can influence the future value of your home when you choose to move on. The above questions also influence what compromises you have to make to get into that first home. Will a new suburb and longer commute be your compromise?
Now’s the time to talk to your local trusted mortgage adviser, to help find the right property, and a mortgage that fits your needs and lifestyle.
Contact us now to discuss your options.