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First,as anewbieintheinvestment fieldyouwon’t yethavelearnt akeylessontheexperiencedinvestors have.Don’ttryto pickthetopsandthebottoms.You’ll feelfarworsewaitingtoolongandmissingeitherthan takingadvantageofthelargenumberofpeopleonthe
Whenwetalkedaboutgetting afootontheproperty ladderitwasinthecontextofstartingsmall,thenlater upgradingtoaccountformorechildrenand ahigher incomefurtheruptheworkladder.Thesedaysit seemsmoretorefertooutrightbuildingof afinancial wealthportfolioandavoidingmissingoutonwealth accumulationbeingenjoyedbyothers.
Mainlyitisbecauseweconsidermorewealthtobe betterthanless.Ifhousepricesarerising,wefeelricher, potentiallymorecleverandpleasedwithourselves, happieraboutourabilitytofundour retirementby downsizingifnecessary,andperhapswelike areasonto justifyspendinguplargeon aholidayornewfurniture.
Thatis,you sellwhenmarketsareexceptionally frothyandthereisnotroublefinding abuyerwhosets noconditionsforthelesserqualityassetyoumight wanttosell.Youbuywhenthereare ahighnumberof sellers,youcanuseeachas abargainingchipagainst theothers,andyoucanpickandchoosethebestquality assetswithgreatestlong-termoryieldgrowthpotential.
Second,ifyour focusiswhereitshouldbeon securing ahomeratherthan thefirsthousingassetfor yourportfolio,thenwherethemarketsitsrightnow, potentiallyeventhismonth,isasgoodasitisgoingto getfor averylongtime.
Youcanpickup apropertyforasmuchas15% -20% lessinAucklandthanyouwouldhavepaidlatelast year.InAucklandyouhave80%morehousestochoose fromthan ayearago,outsideofAucklandalmost 130%more. Vendorshavelikely reachedtheirpointof capitulationtomarket reality,with arecentASBsurvey showing anet31%ofpeopleexpectpricestofallfurther (28%inAuckland).Thissurveyisnot agoodpredictor ofwhatwillhappen, butitdoesinthisinstanceallow ustosayvendorshavealmostcertainly lostfaithinany beliefthatwaitingwillyield abetterprice.
We’veaskedNZ’sleadingpropertyexpertsto explainwhythehousing markethas changedinsuch ashortspaceoftimeand whateffect inflationand interestratesare having on houseprices.
So,arefirst-homebuyersinfactstartingtofocuson thenewopportunitytosecureahome?Maybe.My latestsurveyof realestateagentsshowsthatforthe firsttimesinceSeptemberlastyearmoreagentsare seeingincreasednumbersof first-homebuyersthan decreasednumbers.Lastmonth anet36%wereseeing fewer.Thingsmaybechangingveryquicklyamongst first-homebuyersandifyouhave amisplacedfocus ongettingyour first housingassetatthebottomofthe pricecycleratherthanyour firstownedhome,thenthe clockistickingagainstyou.
MysurveywithREINZshowsthatworriesabout highinterestrates,accessto finance,andevenfalling prices,areallabating.Italsoshowsnumbersattending openhomesrisingfor thefirsttimesinceFebruary2021. Thehousingcyclehasnowenteredthepreparatory phaseforturningbackupward.
elcometothelatestOneRoofProperty ReportandourfirstOneRoofFirstHome BuyerGuide. We wanted to putour expertisetouseandhelpnervous first-homebuyers andpropertynovicesmakesenseofthebuying process.Inthefollowing pageswe’llprovidetipsthat will supportKiwis on theirpropertyjourneyandset out whatgrantstheycan drawonwhen makinga purchase.
othersideof thetransactiongivingyoutheabilityto pickandchoose.
naverageeachyearinNewZealandabout 80,000housesareboughtandsoldaroundthe country.Thisisabout4.4%ofthetotalhousing stockandmeansthatforthevastmajorityof peoplethesometimeslargeupsanddownsofhouse pricesareirrelevant.Sowhydowepaysomuchattention towhatishappeninginthehousingmarket?
MARKET WATCH
Alsoinsideare thelatestsuburbvaluesforallof NewZealand,provided by ourdatapartner, Valocity, andinsightsand commentaryfromindependent economistTonyAlexander, propertycommentator AshleyChurchandmortgagebrokerRupertGough.
•TonyAlexanderisanindependenteconomics commentator.Additionalcommentaryfromhimcanbe foundatwww.tonyalexander.nz
Theriskiest afirst homebuyercan make
Ifyouareafirst-homebuyerandyourfocusison wealthgrowth,thenyou thinkyouareincentivisedto holdoff untilpriceshavebottomed.Thisis adangerous strategyeasilychallengedin twoways.
move
Whyholdingoff untilpriceshavebottomedis thewrongchoicefor Kiwis tryingto geta footonthe propertyladder,writes TONYALEXANDER “RIGHTNOW, POTENTIALLY EVENTHISMONTH,ISAS GOODASITISGOING TO GET FOR AVERYLONGTIME.” From theeditor 4 Coverstory:Beginner’sluck 9 OneRoofFirstHomeBuyerGuide 25 Moneymatters:RupertGough 26 OneRoof-ValocityHousePriceReport 38 Comment:AshleyChurch Inside Designandcover Beth Walsh │ Artwork Derek Watts Subeditor Akanisi Taumoepeau Photos FionaGoodall, TedBaghurst,PeterMeecham, GettyImages
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Forthosewho can’ttelltheirdeadlinesalesfrom theirtenders,andare terrifiedbyauctions,this isthe perfectguide.
Shouldyoutryandbecleverandholdoutforthe final5%ofpricedeclines?Considerthis.Haveyouever heardyourparentsorgrandparentsbemoanthefact theyboughttheir first housefor$65,000buthadthey waitedthreemonthscouldhavegotitfor$61,750?
O
Mymonthly surveyofrealestateagentsundertaken alongsideREINZhas just shownthat45%ofinvestors lookingtomake apurchasearemotivatedbyhopesof finding abargain, upfrom30%inFebruary.The smallest netproportionofagentsare seeinginvestorsstanding backfromthe marketsinceSeptemberlastyear.
Thisis aproblemforcurrentfirst-homebuyersright thismomentbecauseofthestagewhichourhousing cyclehasjust reached.Currentlythereisa dominant focusonhowmuchfurtherpriceshavetofallafter alreadydeclining10.4%fromtheirnationwide peak lastNovember.Aucklandpricesaredown16%.The commonexpectationisthatpriceswilldeclinemaybe another5%.Afterthatitseemstheprevalentview isthingswillsit flatforanextendedperiodoftime. Actually,I expectrisesof5% -10%in2023.
Keep in theknow!
Butforthoseofuswhomadeour firstpurchase beforegovernmentstoldusweneededtobuildwealth for retirementbecausenationalsuperannuationmight notbeaffordableoneday,lifetimewealthaccumulation wasnot reallythemotivation.Ourfocuswason securing ahomeinwhichtoraise afamily. We wanted somethingnottoofarfromourworkplace,perhapswith someoutsidespaceforplaying,gardening,andhanging thewashing.
BEGINNER’S LUCK
PHOTO /T ED BAGHURST
Listings areup, pricesare down andcredit rulesare loosening. Can first home buyers getahead, when so muchhas beenstacked against them? CATHERINE MASTERS checks out the state of the market. ? FIRST HOME BUYERS | COVER STORY
4 OneRoof.co.nz
INTEREST RATE PRESSURE
If they were entering the market now,with the FOMO having dissipated, they may have decided not to uproot themselves, he says.
While high inflation has grabbed headlines with stories of people cutting back on their spending, Patterson says the untold story is whathappenswhen people refix their mortgages.
“If you have half amillion dollars of debt,for every percent your mortgagerate goes up,that’s $5000 of additionalinterest.”
Awin for first home buyers, though, was this year’s Budget announcement of the removal of first home loan caps nationwide and theincreasing of the price caps for first home grants.
The relaxation of the stringent CCCFA(Credit Contracts andConsumer FinanceAct) lending rules banks have been applying around home loan applications has seen newbies being able to dip their toes in thewater again -and those rules aredue to befurther loosened, although the next wave of changes won’t take place until March.
Forastart,thephonesareringingagain–but Kurukuntalasaysfirsthomebuyersarealsocomingback tothemarketfarmoreeducatedandmuchmoresensible.
They aremoreaccepting of the higher interest rates whereas at the beginning of the year they wereshocked at how theyweresoaring: “Now they realise that is the reality and people do understand inflation and everything.”
People arealso realising thereisnopoint stretching their budgets to the maximumoftheir loan approval, he says.
“As abroker Icalled all my firsthome buyers who couldn’t buylast year and told them themarket is changing; nowinvestors areout; now it’s your time to get in and buy.”
“Some of that is not necessarily because of theallure of the place they’ve moved too, it’s morethat they think they need to have ahouse at all costs.”
The rollercoaster housing market changes direction quicklyand not-if-but-when it flips back to asellers’ market firsthome buyers could again struggle to compete.
IRST HOME BUYERS areemergingfroman enforcedhouse buying slumber,although the road to home ownership is still noteasy. Tweaks to Government regulations and home loan schemes, however,have eased the pain abit after adifficult few years, say agentsand commentators.
“In 2020 and 2021 if peoplegot approved for $1m they wanted to buy ahouse for$1.2m but now the trend is if they’reapproved for $1m they arelookingathousesat $900,000.
Kurukuntala also thinks firsthome buyers arerelying on brokers morethan banks, and shoppingaround among brokers, to make surethey aregetting theright information andthe best deal.
Developers have become morerealistic, too, he says, which helps because they areselling property for afair price as opposed to wanting morethan what the house was worth in last year’s market
But mortgage broker Solomon Kurukuntala,fromthe Loan Market, who works in firsthome buyer areas in Auckland’s south, says he’s noticed changes in the first home buyer psycheoflate.
“I think therewas alot of despair around ‘I can’t find a house’ ayear agoand nowit’s back to ‘I can’t affordthe house Iwant’. That’s ahuge change.”
Given house prices have dropped, this is still amore preferable scenario to being approved for $1m but not being able to snareahouse at all amid thebuying frenzy last year,Gough says.
Economist Benje Patterson, however,urges caution about buying far from home just for the sakeofgetting on the property ladder
“USUALLY, BEFORE YOUREALISE IT’S HAPPENING,YOU’RELOCKED OUT AGAINSODON’T FALL INTOTHE TRAP OF SITTING BACK AND WAITING.“ JAMESWILSON, VALOCITY HEADOFVALUATIONS
Patterson also saysfirsthomebuyers shouldworkout their own mortgage repaymentbudget on very high interest rates, regardless of whatever thebanks’ shortterm stress test rates are, because anything canhappen.
”If the unthinkable ever happened and they went to something like 12 or 15 percent would Ihaveaway to get through?”
“They realise they can’t keep spending theway they used to beforeand alsohave amortgage.”
“Over recent years we’ve seenalot of people pushed in to places they don’t actually really want to live,both
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Caveats to thegoodnews for firsthome buyers is not just high inflation and risinginterest rates but the fact banks aretesting people’s abilitytorepaymortgages on much higher rates.
But even with the tweaks and the housing market having turned alittle in the favour of firsthome buyers, meaning they can take abit of time to look around and put in offers with conditions attached instead of trying to buyunconditionally at auction, many say new buyers should not taketoo long to make up their minds.
Some have said next year is notsoon enough because the CCCFA, which has seen banks examining expenses on the bank statements of would-beborrowers with a magnifying glass, has stopped many firsthome buyers in their tracks.
And while the banks have dialleddown on the CCCFAstringency,Kurukuntala says the strictness over the firsthalf of the year contributed to achange in the cultureofhow first home buyers managetheir finances.
Patterson says he haspeers who are“not completely comfortable” with wherethey have ended up and some have found themselves stuck in aplace that doesn’t quite fit them and far from their social connections.
“Theyknowverywellthewaythingsaregoingwith interestratesandothercostsiftheywanttospend$1mor morethenthatit’sgoingtoputalotofburdenonthem.”
James Wilson, head of valuations forOneRoof’sdata partner Valocity,saysfirst homebuyers who think they
suburbs and also other parts of the country
RupertGough, CEOandowner of the MortgageLab, says interest rates arethe really big problem in thefirst home buyer market because higher rates meanpeople lose asignificant amount of their buying power
MISSED OPPORTUNITIES
“That kind of salary gets you about $800,000 of borrowing. That’s anywhereinNew Zealand and $800,000insome parts of New Zealand buysalot –you could get afour-bedroom house in the provinces.”
CHANGING MINDSET
“If they could have afforded $1m last year for a mortgageitwould be about $850,000 this year”
He says he bought when rates wereabout 5per cent but was alwayslooking at how he would cope if they were10per cent or more.
That’s because they have to find alot moremoney to pay back theloan.
Gough also sayspeople haven’t grasped the magnitude of geographical barriers being removed from the firsthome loan price caps, saying anyone earning less than$150,000 can access the first home loan scheme and withalow deposit.
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FIRST HOME BUYERS | COVER STORY
can’t affordtobuy ahomeshouldnot be swayed by advice from mum or dad or familybut should talktotheirbank or abroker
But he says even though house prices have fallen first home buyers shouldn’t be fooled intoexpecting the market to fall further,saying while that mayhappen the minute the market stops softening it could take off upwards again quickly
WHANGANUI
“There’snicehousesandnice estatesspringingupallover Whanganui.There’sbeenquitealotof buildinggoingon.
‘You’re five minutes away from anywhere’
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With interest rates the way they aredebt servicing affordability is an issue as first home buyers generally start from lowdepositsbut want to borrow alot.
IN WHANGANUI, thefirsthomebuyer marketisstillactiveinpartbecauseof peoplemovingintothearea,manyof themAucklanders.
“They’reable to buy properties alot moreontheir own terms of howthey go about it and any potential conditions they put on the purchase.”
“Usually,beforeyou realise it’s happening, you’re locked out again so don’t fall into thetrap of sitting back and waiting.”
“There’salotofactivitiesinthistown thatalltheyoungsterslike.Ifyougeta jobinWhanganui,you’refiveminutes awayfromanywhere.”
“PeoplemovetoWhanganuiand thentheirkidsbuypropertieshere.
PHOTO /TED BAGHURST
“Whanganuionthewholeisoneof thecheaperareasinthecountry.We’ve hadalotofpeoplemovetoWhanganui andveryhappytheydidso.”
“Whanganui’saveryeasyplaceto getaround.It’sgotthesurfbeaches, relaxingbeaches,you’vegottheski fieldsjustanhouraway,you’vegotthe river,andit’saverysportytown.
PHOTO /B EV AN CONLEY
Sometimesolderpeoplecometo Whanganui,enticedbythelifestyle andmildclimate,thenyounger generationsfollow.
Butthepricesareabsolutelya drawcard–whatcosts$600,000or $700,000insomepartsofthecountry costs$500,000inWhanganui,Ellis says
“Go and find out the factsbecause you may be surprised, you could be alot closer to being able to buy than you think.”
Thereareplentyofareasforthem togetahomeinandapopularsuburb isCastlecliffatthebeach,whichused tobealowersocioeconomicareabut whichistransforming
They’recomingnotjustbecause propertiesarecheaperbutalso becauseofthelifestyletheareaoffers, saysSteveEllis,principalforHarcourts Whanganui.
“Forareallygoodhouse,fora good,basic,starterposition,you’dbe lookingatabouthalfamilliondollars. Ouraveragepricinghereisabout $550,000/$600,000.”
“We’ve gottotake that perspective that we get these periods whereinterest rates maybequitehigh and that can make life abit challenging for ayear or two butthey arenot always goingtoremain at those levels.”
“Thereare$1m-plushomesout thatwayorthere’syourlower-priced probablyaround$400,000to$500,000 dependingonwhatpartyou’rein.
TheASB’s chief economist,Nick Tuffley,says he sees two bigpositivesfor first home buyers at the moment one is house prices arelikely to keep falling into the early parts of next year,and the other is the disappearance of the FOMO factor
EllissaysinWhanganuifirsthome buyersareoftenalittleolder,perhaps intheir30sandalreadywithfamilies, sotheyarelookingforanicerproperty whereascheaperpropertiesare generallysoldtoinvestors.
But Tuffley pointsout therehave always been, and always willbe, cycles in prices and interest rates.
“IF YOUHAVEHALF A MILLIONDOLLARS OF DEBT, FOR EVERYPERCENT YOUR MORTGAGERATE GOES UP,THAT’S $5000OFADDITIONAL INTEREST.” ECONOMISTBENJEPATTERSON
Unlikesomecities,firsthomebuyerlocations, though,tendtobescatteredthroughout Wellington,shesays.
‘Outerareashave takena muchbigger fallthanthecity’
It’sashamebecausehousehunting-wise there’sprobablythebestchoicetheyhaveever had:“Beforetheyhadtobuywhattheycould getbutnowtheycanactuallyhaveagood lookaround.”
Shethinkssomegaveupthehomeownership dreamwhenpricesweresohighandsomeof thosebuyershavepossiblybecomingpartofthe netmigrationlossthecountryisseeing.
AGENTSIN AUCKLAND agreethefirst homebuyermarketiswakingup.
‘A lotofinvestorshave had enoughandaresellingup’
TomRawson,co-ownerofRayWhite Manukau,inSouthAuckland,isseeing farmorefirsthomebuyerslooking inareaslikeWattleDowns,Conifer Grove,WeymouthandManurewa.
PHOTO /GETTYIMAGES
NickiCruickshank,principalofTommysReal Estate,says:“InWellington,firsthomebuyers wereabletopayupto$1.3millionsixmonths agobutnowIwouldsaytheyaredownto $700,000to$900,000.”
DiegoTraglia,atop-sellingagentfor HarcourtsNorthwestRealty,whosellsall overthecity,saystherecentsoftening oftheCCCFAandchangestoprice capsandgrantshadmadelifeeasier forbuyersbuthigherinterestratesand, moreimportantlyhighertestrates,were stillaproblem.
Bankscanofferlowerinterestratesfor newbuildsatabouthalfthenormalrates, Cruickshanksays.
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Theinner-cityhasapartmentswithinreach, andtwo-bedroomunitscanbefoundin suburbslikeKarori,LyallBay andMiramar.
“Someofthemaredrivingfromallover Aucklandtoouroffices.Theywantto doadealandoftenthey’renothanging arounduntilthenextdaytodoadealwith aconditionalmarket,”hesays.
Clinton ToChrissyChrisKenny
FIRSTHOMEBUYERS | COVERSTORY
Rawsonsaysthateventhoughmany firsthomebuyerswouldprefertomake conditionaloffers,theyshouldstilllookat what’sonofferatauction.That’sbecause he’sseeingalotofinvestorswhohave hadenoughandaresellingupbutthey wantthedealdoneontheday.
“Thatsouthwesternsideseemstobea desirableparttobebuyinginandit’sat pricepointswefindfirsthomebuyers areshoppinginaswell.The$600,000to $850,000rangeseemstobegoodfirst homebuyerterritory,”hesays.
can’taffordalotofthetime.”
Rawsonaddsthatfirsthomebuyers strugglingtogettheirheadsaroundhigh interestratesshouldrealisethey’renot thathigh.Heboughthisfirsthousewhen rateswereatninepercent:“Theseare normalinterestrates-wejusthadatwoyearperiodofincrediblylowrates.”
INWELLINGTON, agentsreportthatbuyer havemuchlesspurchasepowerthantheydid attheendoflastyear,becauseofthesqueeze onlendingandrisinginterestrates.
Thefallinhousepricesinthecityhasbeen apositiveforthoselookingtogetafootonthe propertyladder,withTommysdirectingnew buyerstowardstwo-bedroombrickandtile unit-typeproperties,aswellasoff-the-plan two-bedroomtownhouses.
your ValuationRequirements
PHOTO /F IONAGOODALL
ellStreet,Whanganui4500 www.morgans.co.nz
Property Valuerswithexpertlocalknowledge
“Therehavebeentwoorthree differentchangesofheartinterms ofregulationsandincentivesfrom theGovernmentbutit’sstillveryhard becauseoftheinterestrates.”
Firsthomebuyersonabudgetwouldn’thave ahopeofgettingintosought-aftersuburbslike Seatoun,wheretheaveragehousepriceis$2m, butCruickshankpointsoutMiramarisrightnext door,asisStrathmore,wheretherearealso affordableplaces.
AUCKLAND WELLINGTON
Traglianotesthatsomefirsthome buyerscanbepicky,wantingchampagne onabeerbudget.“Theywantthe dream-theywantthequarteracrewith thedoublegarageandtherenovated house.Thereareplentyofoptionsfor townhousesbutKiwisdon’tlikethattype ofpropertysotheystillwantwhatthey
“AnewbuildinterestrateisIthinkabout2.75%. TheANZIthinkaretheonlyonesofferingitatthe momentandtheyareofferingacertainamount untilitrunsoutandIthinkitwillprobablyapplyfor anothersixmonthssofirsthomebuyersshould definitelybetakingadvantageofthat.”
Cruickshanksaysdespitetherebeingtwiceas manyhomesonthemarketthanlastyearthere arefarfewerfirsthomebuyersoutlooking.
Pricedropshaveputmoresuburbs withinreachoffirsthomebuyerswith lessthan$1mtospend,withTraglia highlightingopportunitiesinGlenfield, BirkdaleandBeachHavenonAuckland’s NorthShoreandthewholeofWest Auckland,includingMassey,Henderson andpartsofWestHarbour.
Theoccasionalthree-bedroomhouse mightbeachievableforafirsthomebuyer buttheywouldhavetolookoutsideofcentral Wellington,asfarasTawa,WhitbyortheHutt Valley,Cruickshanksays.“Thoseouterareas havetakenamuchbiggerfallthanthecity, theyalwaysdo,becausepeoplehavetogo furtheroutasthingsgetmoreexpensiveand thenasthepricesdropitcontractsbackin againsothoseouterareasdodropmorethan thecity.”
Buying your first homeis abig step. Butevery yearthousandsofNew Zealandersmanagetodo it and becomehomeowners.
Discoverwheretostartandhowto buywith OneRoof’scomprehensive guide.
Findouthowmuchdeposityou need,howto qualifyfor amortgage, thedifferentsalesmethods,buying new,andthelegalprocess. We cover allthemainquestions andissuesthat first-homebuyerswillencounteron thejourney.
We’vecmpiled aseriesofarticles coveringthehome-buyingjourney fromdreamto reality.Thisguide coverseverythingfrom:howtosave for adeposit,tosettlementday,when thehomebecomesyours.
ithproperty pricesfalling, moreand morefirsthome buyers willachieve theirdreamoverthenext 12 to24 months,picking upthekeys totheir veryownhome.It’sdo-able withthe rightknowledgeandattitude.
OneRoof buying your firsthome
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BY DIANACLEMENTguide to The
The first step in working out howmuch you can affordand how much the bank is likely to lend you is to crunch the numbers to determine howmuch you can affordtospend on ahome. This helps you focus on the right housesin your price range.
● At least $400 for each building inspection
● You’ll receive the annual government contribution of up to $521.
Speak to thebank or a mortgageadviser Yourbank’smobilemortgage manageroranindependent mortgageadviser(broker)canhelp youdothenumbers.Theservice isusuallyfree.Yourmanager oradviserwillgothroughyour financesandadviseonissuessuch asconsumerdebt,andsuggestways toincreasetheavailablesurplus youhaveformortgagerepayments.
Often, first-home buyerswill seek to supplement their income to helpcover therepayments:
● Having atenant, flatmate or boarder: If youplantolivewith aflatmate in yournew home,you mightbeable to count some of the rent as income in the mortgage calculation. Be aware that lenders won’t count theentirerent paid to youasincome.
● Youmay also qualify for aFirst Home Grant. The grantranges from $3000 to $20,000 depending on the number of yearsyou’ve been saving,whether the home is existingorbrand-new,and if you’reasingle or acouple, buying.
● Debt-to-income ratios (DTIs): some banks will onlylend you a certainmultiple of your income, such as six timesyour salary
Tocalculatehowmuchyouhave foradeposit,adduphowmuchyou havesavedalreadyinKiwiSaver,other investmentsandinthebank.Youmaybe abletoborrowmoneyfromthebankof mumanddad,or,ifyou’relucky,receive agiftthathelpsyougathersufficient deposittobuy
When banks assess whether they will lend to you, they use atest rate which is several percentage points higher than the actual interest rate. This helps ensureyou can affordthe mortgage if interest rates goup. It is still agood ideato create apersonal budget based on your actualexpenses.
Thingstoconsider
Supplementing income to affordrepayments
Paymorethan theminimum repaymentif youcan
Mostfirst-home buyerstakeouta 30-yearmortgage becausethe repaymentsare lowerthanshorter mortgageterms However,thelonger themortgageterm themoreinterestyou willpayintotalover thelifetimeofthe loan.
Whatyou canaffordnow mightchange in thefuture
Whatare the upfront costs and legalfees?
Most buyers need 20% of thehome’s purchase price as adeposit in order to borrow therest as amortgage.With a brand-new home,the deposit is 10%.If youqualify for schemes such as Kāinga Ora’s FirstHome Loan andFirst Home Partner,itispossibletobuy with a5% depositprovidedyou meet certain income and propertyprice thresholds.
Thetotal amount of money you need to buy ahome is more than just the deposit. Upfront expenses forbuying ahome include:
When buying your first home, it’scritical to set arealistic budget.It’s thefirst step in working outhow much youcan affordand how much thebank is likelytolendyou
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● $1000 to $1500 forconveyancing/legal fees
1 FIRST HOME BUYERS GUIDE
Once you’ve worked out how much deposityou have, youwill have an indication of how much youcan afford to payfor ahome.Itisimportant to understand howmuch homes are sellingfor in theareayou areinterested in moving to.Youcan find sale prices for recently sold houses, estimates based on sales in the area and alsouse our house prices report updated monthly on OneRoof.co.nz.
Using KiwiSaver
Saving for ahousedeposit requires that you spend lessthan you earn. Most firsthome buyers save with KiwiSaver.There aremany advantages to this:
Ahome-buyingbudgettakesintoaccount howmuchyouearn,howmuchdeposit youhave,thecostsofbuying,andwhat yourone-offandongoingexpenseswillbe afteryoumovein.
● Good an additional 3%, although some employers use a“total remuneration” clause in the employmentagreement to avoid paying this.
Makesureyou calculatethe upfront costs of buyingahomesuch as lawyers’ fees and LIMs, and alsonew ongoing costs such as council rates, body corporatefees andhouseinsurance.
How much canIborrow?
● Buying as asingle or acouple: Buying with two incomes is usually
You’ll need to learn some of thejargon:
● Youwon’t be tempted to dipinto your savings for everyday spending
How much you canborrow fora mortgage comes down tohow much the bank believes you can repay comfortably
● SETTING A BUDGET
Most banks have affordability calculators, which crunch your income andspendingtodetermine how much youcan comfortably payeach fortnight or month.
● Loan-to-value ratios (LVRs): the percentage of theloan that the bankiswilling to lend. It adds up to 100%. So if the LVRis80%,you needa20% deposit.
Ifyoucanafford to,it’sworth budgetingforhigher repaymentsora shorterloanterm(25 or15years).
easier than one. If you are applying for ajoint mortgage (with apartner,family member or friend) the bank will calculate how much it will lendyou based on your joint income and expenses. If the mortgage is 100% in your name the amount you can borrow will be based solely on your income and expenses
● CreditContracts and Consumer Finance Act (CCCFA): alaw thatrequireslenderstoact responsibly.Itcan, however, restrict how muchhome buyers can borrow because banksare required by lawtoensurethe loan is affordable forthe home buyer
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Additional costs
Ongoing expensesincludefortnightly ormonthlymortgage repayments, utilitiesbills,councilrates,home insurance,andmaintenance.Inmany apartmentcomplexesyouwillhave body corporatefeesto pay, which do atleastcoveryourmaintenanceand insurance.
● Around $300foreachLIM(Land InformationMemorandum)
If ahousepurchasefalls through andyou havetostartagain,you mayhavetopaymorethanoncefor buildinginspectionsandlegalfees.It’s unfortunate,howeveryourbuilding inspectorand/or lawyercansaveyou frombuying alemon.
The costofbuying ahomedoesn’t stop withmovingin. Youmayneedto budgetfor renovationcosts.
Movinginalsocostsmoney.Thereare removaltruckcostsifneeded,utility connection feesandyouwill needtobuy furniture andfurnishings(unlessyou alreadyownthese).
Yourmortgagealsocan have hiddencosts suchaslendersmortgage insurance (LMI)/LowEquity Premiums(LEP)ifyourdepositis lessthan20%.
All the banks have mortgage calculators, which give you an indication of how much your mortgage will cost each fortnight or month. Sorted.org.nz also has amortgage calculator.Some banks have goal planners.
First, download your bank account, credit cardand loan statements for the past three months and then categorise the spending under headings such as: food, utilities, rent, giving, saving, and fun money
● If you break even each month: you may have enough income to cover mortgage repayments.
Budgeting is essential for anyone who is serious about saving for afirst home. It will help you prioritise spending in order to reach your goal faster
Afterthreeyears youcanwithdrawallof yoursavings,except for$1000,tobuyyour firsthome.Saverswho qualifycanalsogeta FirstHomeGrantofup to$5000perperson foranexistinghome,or $10,000forabrand-new home.That’sdoubled iftwopeoplesuchas acouplearebuying together
To set your savings target for the deposit, work out approximately what you expect your first hometo cost at the time when you’reready to buy.With that figureyou can work out howmuch your 5%, 10% or 20% deposit will be in dollar terms
Trygaming yourself to spend less and savemore. That might encourage you to thinkbeforespending unnecessarily If youwantyour budget to succeed, always makesureyou give yourself afixedsum of “fun”moneyeachpay packet to spend on whateveryou want, then manage the rest carefully
● Ask parents forhelp. Some parents areinthe financial position to help
If you’ve decided to buy yourfirst home, you’ll need to save fora depositand the sooner youstart the better.Hereare some practical tipstohelp you startsaving
higher deposit, you will sometimes get alower interest rate.Also, because you’reborrowing less, your regular interest payments will be lower.They’recalculated on the outstanding mortgage balance.
● What the home willcost
Using Kiwisaver
With abrand-new home, thedeposit is usually 10%. Those who qualify for schemessuchas Kāinga Ora’sFirst Home Loan it could be 5% if youmeet certain incomeand propertyprice thresholds.With First Home Partner, the deposit will vary according to how much aparticipating lender is willing to lend to you andthe percentage contributionKāinga Ora will make towards purchasing the homewith you.
● How much deposit you willneed, and
● If you arespending morethan you earn: you will need to cut costs.
How long will it take?
If your first home is likely to cost $600,000, a5%depositis$30,000, a10% deposit is $60,000, and 20% is $120,000. For an $800,000 house, that’s $40,000, $80,000 and $160,000. You’ll probably need another$5000 to $10,000 for your purchase and moving costs.
How to createabudget
Once you know how much deposit you need, dividethat by the sum you plantosave weekly or monthly,and from this you canworkout how many years it will taketoget your deposit together
Start by searchingOneRoof to get an ideaofhow much you’ll pay for a home in yourcriteria.
Budget apps and spreadsheets are available on the Internet. Sorted has a simple budgeting tool. Most banks also have tools to help you budget.
Earning moremoney makessaving for adeposit easier.Italso increasesthe amount you can borrow
If you can, savingmorethan the minimum deposit makes sense. With a
Toolstohelp yousave
Next, compareyour expenses with your earnings.
● If you have asurplus income each month: this is agood place to be, but you might still need to reduce your outgoings to reach your savings goal.
SAVING FORA DEPOSIT
Topsavingstips
● Payoff consumer debt. If you’re paying interest on storecards, credit cards, hire purchase, or otherdebts, it’s slowingdown your savings. Pay off thehighest interest debtfirst if you can. Paying downconsumer debtisimportant if you’regetting ready to buy.Any debt youstill have, including student loans and buy now pay later, willreduce the amount you can borrow because youhaveless spare money to payyour mortgage. If youcan’t increase payments on the existing debt as wellassave for a deposit,then at least stoptaking out new debt. If youcan’t trust yourself, cut up your credit andstorecards.
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● How much disposable income you have to save after necessitiesare paid for
How long it will take you to save for a deposit on your first home will depend on:
AllKiwiSavers receiveagovernment contributionofupto $521.43eachyearon thefirst$1042.86saved. Ifyou’reemployed,you shouldalsoreceivea contributionfromyour employerequalto3% ofyourgrossincome Anotheradvantageof savingforahomeloan withKiwiSaverisyou can’tbetemptedtodip intoyoursavings.
Work outhow much youneed to save
The banks may be able to split your pay into various accounts as it comes in, which makes saving easier
● Increase your KiwiSaver contributions. If you’re already saving all you can, great. If you needsome encouragement, you could increase your KiwiSaver contributions because it comes out of yourpay before you receive it.You can choosecontributionsrates of 3%, 4%, 6%,8% or 10%. Then just adjust yourbudget aroundyour newnet pay.Ifyou can’t committoputting away moreinKiwiSaver because you might need it in emergencies, at least set up automatic payments from your bank accountintosavings.
Saving for ahouse deposit is not easy, but the sooner you have adeposit, the sooner youcan buy
Thereare many budget apps on GooglePlay and theApp Store. Make surethe one you choose works for New Zealand. Some budgeting apps such as Booster’s mybudgetpal (free) and PocketSmith (paid) download your bank transactions automatically,which makes budgeting quicker
2 FIRST HOME BUYERS GUIDE
Theverybestplaceto keepyourfirst-home savingsisinKiwiSaver becauseofthebenefits forfirst-homebuyers. You’llneedtosavefor atleastthreeyearsin KiwiSaverbeforeyou canuseittobuyyour firsthome.Togetthe mostoutofKiwiSaver youneedtosaveforfive yearsormore.
Decreasingwhatyou spend now can pay off.Ifyou’relike most New Zealanders, you’ll spend morethan you needto, and smallexpenses addupvery quickly
helpedpeoplebuyandsell propertyfor over100 years. Ourexpertconveyancers doallthehardwork foryousothat yourproperty transactiongoesassmoothlyaspossible. Let’s getstarted, callourfriendlyteamtoday.
● Find an additionalsourceofincome. Somesaversget asecondjob,or aside hustle to makeextramoney.Youmight alsowanttoselloff someunwanted belongings.Doingsocouldadd afew thousanddollars to yoursavings,but alsoteachyounot to confuseneeds andwantsinthefuture.
if y. n
horsleychristie LAWYERS F: +64(06)345 2405 A: 14Victoria Ave, Whanganui,NewZealand. T: +64(06)3490090 E: reception@horsleychristie.co.nz horsleychristie.co.nz
● Reduce yourday-to-day expenses. Makingsavings is easierthanyou think. Take areallyhardlookatyour bankandcreditcardstatements.Most peoplehavemoreentriesforlunches, coffees,takeaways,and restaurants thanthey think.Take alonghardlook atyoursubscriptionsfromsoftware toNetflix.Cutthemout,orlimitthe numbertomakethem atreat.
andmaybeabletolendorgiftyou someofthedeposit.
adepositcouldbeeasierifyoumove backhome,takeinflatmates,orget acheaper rental.It’snotforeverand canspeedupyourhomepurchase considerably.
HorsleyChristiehave
● Shoparound forbetterdealson
● Watch living costs. Renteatsupa huge chunkof yourincome.Saving for
OneRoof.co.nz 13
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phone. Ifyouhaven’tdonethisfor12 monthsmostlikelyyou’reonan old plan,whichcostsmorethanthelatest onebeingofferedto newcustomers.
● Speaktoanaccountant,mortgage adviser(broker)orfinancialadviser earlyon.Theycangiveusefuladvice.
● Learnhow to savemoneyon groceries. Oneofthe bigexpenses whereweconfusewantsandneeds isoursupermarkettrolley.Planyour meals,learnto cook,andaskyourselfif everyiteminyour trolleyisa necessity. Manyaren’t.Comparepricesbetween mainstreamsupermarketsandother suppliers.Youmay havea Chineseor Indian supermarketnearyou, acheap fruitandvegetableshop,or afarmers market.Savingscanbeconsiderable.
areYourLocal ConveyancingExperts
$ $
Ifyou haven’t done this for 12
yourpower, broadband andmobile
● Getapay riseorswitch jobs.You canincreaseyourincomebyseeking apromotion,orswitchingemployers. Earningmoreatworkisn’talways easy.Lookatyourskillsetthentalk toyourbossorhuman resources departmentabouthowyoucanmove upintheorganisation.Ifthereare nopossibilitieswithinyourexisting organisation,itmay be timetomove.
Youcould delay your purchase. That allows you to build up abiggerdeposit and/orincrease your income, both of which allow you to borrow more.
● Proof of income
If you’reunsure about which home loan options arebest foryou,your mortgage adviser or manager can help identify the most appropriate for your financial circumstances.
Howmuch shouldyou beearningto payoffyour mortgage?
Asmall proportion of buyers who can’t borrow from thebank anddon’t want to wait borrow instead through “non-bank lenders” such as building societies and finance companies.Amortgage adviser can arrange this. But the trade-off is that usually you’llpay ahigherinterest rate for loansfromnon-bank lenders.
3 FIRST HOME BUYERS GUIDE
Starting out
qualifyto borrowfrom
Mortgage /income calculatortools
Most people needtoborrowtobuy ahome. The mortgage (also known as ahome loan)combined withyourdeposit make up the purchase price of the property.Inmost casesyou’ll need to have 20% of the purchase price of the house saved as adeposit beforethe home loan application process starts.
GETTING A HOME LOAN
Thereare different types of homeloans. The most common ones are:
interest payments component.
Afloating(variable) interest rate can rise or fall at any time, affecting your repayments.Afixedinterest rate(for anywherebetween one andfive years) ensures that the interest rate youpay on your loan is fixedfor theentirety of that period.Your repaymentsdon’t change until thefixed-rate period expires.
Arevolving credit home loan is like a giant overdraft.Yousave interest when your wages gointo the account each month becauseit reduces the outstanding balance.Youneed to be very disciplined for thissort of home loan to work, but it’s an option forthose who arefinancially prudent.
Acommon tactic for homebuyersis to split amortgage overmorethan one fixed-rateterm, and to keepaportion on afloating rate, which allows extra repayments, paying down the home loan faster
Thehome loan application process
● Bank statements from thelast six months
There’snomagicsum youneedtoearntobe eligibleforamortgage It’slessabouthow muchyouearnand moreaboutbeing prudentwithyour finances.
Thegeneralruleis thatyouwillneedto earnsufficientmoney tocoverrepayments afteryourexpenses.
● Proof of address.
Areducing loan is similar,but has higher repayments at the beginning because you’repaying moreofthe capital than a table loan.As the amount outstanding to the bank goes down, so too does the
Beforeyou applyfor ahome loan, you’ll need to getsome documentationtogether Regardless of whether you’regoing direct to abank as your lender orgoing through amortgage adviser you’regoing to need the following:
Evenifitlookslike youcanaffordto borrow,sometimes thebanksdecline That’sbecausethey determineaffordability usinga“testrate”, whichisseveralpercent higherthantheactual interestrateyou’llpay. Thereasonforthisis thatthelenderwants tostress-testyour financestoensureyou canstillaffordtopayif mortgageratesrise.
Applying foramortgage
Mortgage calculatorscan give you an indication of how much you may be eligible to borrow
Floating versus fixed interest rates
Tableloans
If going directly to thebank rather than via amortgage adviser,make sure you ask thebank aboutthe interest rate, its
● Acopy of your photo ID, and
Revolving credit home loan
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● Evidence of yourdeposit
Reducing balance loans
As well as choosing the most appropriate type of home loan for your circumstances, you also need to consider floating versus fixed interest rates.
It costs the same to completethe application witha mortgageadviser or thebank’s mobilelendingmanager as doing it online. They can give you a clear pictureofwhattoexpect from your lender beforeyou sign the mortgage documentation
Home loan eligibilitycriteria Whenbanksassessyourloan,they wanttodetermineifyouareagood risktolendto.UndertheCredit ContractsandConsumerFinance Act(CCCFA),banksandother lendersmustlendresponsibly Cuttingbackyourspendingsix monthspriortoapplyingfora mortgagecanhelpyourapplication considerably Ingeneral,yourhomeloan eligibilitywillbeassessedonthe following: ● Income ● Expenses(bothessentialand non-essential) ● Consumerdebt(including studentloans) ● Yourcreditrecord ● Whetheryou’reacasualor permanentemployee,orselfemployed Consumerdebt,includingstudent loans,reducestheamountyoucan borrowbecauseanyrepayments aredeductedfromyouravailable income.Youshouldalwaysbe upfrontwithyourmortgageadviser (broker)orbankmortgagemanager aboutyourdebtswhenyou’re applyingforamortgage
Differenttypes of homeloans
With table loans, you pay afixedamount each fortnight or month. In the beginning, most of the payment is interest, but as the balance slowly reduces, agreater portion of your payments goesto pay off the capital.
How much you canborrow forahome loan depends on the size of your deposit. If you’rebuying an existing property, you’ll usually need a20% deposit. For abrand-new home, that percentage drops to 10%. Buyers who qualify for the government’s First Home Loan scheme only need a5%deposit.
● Arecordofoutgoings and debts
If youdon’t abank or can’tget as much as you need,there areother options.
The first hurdletopassfor buyers is thebank’s affordabilitytest, which considers whether the surplusleftover onceyour expenses arededucted from your incomeissufficient to cover mortgagerepayments.
Whenassessing yourabilitytopay, thebankwilltakeinto accountexpenses thatyoudidn’thave beforebuying.They includecouncilrates, maintenanceandhome insurance,whichis compulsoryifyouhave amortgage.
● Youcanonlyborrowasmuchasyour depositandincome/expenseswill allowyou
fees,yourabilitytomakechangesto your mortgageonceset up,andwhat happens if youbreak afixed-rateterm. Youare not limitedto borrowingfrom your ownbank.Shop around.When competitionis highbetweenbanks, youcanoftennegotiatetheinterestrate downor getthe loanapplicationfees reduced.
● Proofofincome(suchasyour balancesheet profitandloss,orcash flowstatements)
Homebuyersoften applyto getpreapprovedby abanktogetanideaof theirpotentialbuyingpowerandprice range. Thisgivesyou more confidence toshoparoundforaproperty.Itshows to realestateagentsand vendorsthat youareaseriousbuyer.
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Contact amortgageadviseror your lenderofchoiceanddiscussyour circumstanceswith them.Theywillbe abletoassessyourmortgageeligibility and tellyouwhatthey’rewillingto lend yousubjecttoconditions.
● Pre-approvalisn’t aguaranteethat youcanborrow.It’s anindicationand expiresafteraperiodoftime
Mortgageadvisersalsosaveon legworkbecausetheyknoweach bank’scriteria,andtheycan argue yourcaseif yourloan is borderline.Theycan alsonegotiateconditions suchasguarantees.If youhaveconsumer debtthat’sstandingin yourwayofgettinga mortgage,mortgage adviserscanhelp restructure thatdebt orgiveadviceabout payingitoff faster.
● Banks’mortgagemanagersand independentmortgageadviserscan helpyou navigatetheprocess
ofwhatyoucan borrowifthe bank approvesof thepropertyyouwantto buy.Ifinterestratesrise,loan-to-value ratios(LVRs)andother ruleschange, oryoudon’tmanagetosettlewithin thepre-approval period, youwillmost likely need to reapplyfor pre-approval. Thisis somethingtobevery waryofif buyingatauction,goingunconditional onanyproperty,orbuyingoff-the-plan whenthebuildcouldtakelongerthan expected.
KiwiSaverFirst Home Grantconsiderations
● Self-employedapplicants need additionaldocumentationandmay havetoconsideralternativelenders
FIXED RATE
Typicallyyouneed14daystothree weeksforthebanktoassessand approveyourhomeloanapplication. Makecontactwiththebankormortgage advisermuchearlierthanthat.
Applying fora home loan whileyou’reself-employed
Gettingpre-approvalcostsnothing. Nor doesitlockyou intothelender.
How long does applying fora home loan take?
Mortgage adviserscanworkwithyou topickthemostappropriatealternative lenderforyourpurchase.
Thingstokeep in mind when ahgetting ome loan
Gettingpreapproval homforyour eloan
Mortgageadvisersare ago-between, workingonyourbehalf.Theycan adviseyouonhowtoimproveyour abilitytoborrow,shoparoundfor you,andnegotiatewiththebanksand otherlenders.Theserviceisfreeifyour mortgageisplacedwith abank.Ifyou don’tfitthebankcriteriaandborrowfrom anon-banklender,youwillneedtopaya feeforthis.
First-homebuyers canfindthepurchase process daunting. Having amortgage adviserinyourcorner takes someofthe uncertainty out. They’reexpertsintheirfieldand workfor you.
As aself-employedhomeloanapplicant, you’regoingtoneedthefollowing ontopofthestandardsupporting documentation:
● Makesure youbudgetin expenses such as councilrates,maintenanceand insurance
Theadvantages of usinga mortgagebroker
F l O a t i n
Ifyoualreadyhave apropertylined up,thenit’s agoodideatogetyour KiwiSaverwithdrawalandFirstHome Grantapplicationsinatthistime. As aruleofthumb,FirstHome Withdrawal andFirstHome Grants cantake anywherebetween 20 days andfourweekstosortout.Sogetthe paperwork togetheratthesametime aschoosing alender.Ifyou’reunsure abouttheapplications requiredforyou to accessyourKiwiSaverfundsfor buyingyour firsthome,orifyou have questionsaboutyour owneligibility, OneRoof has aKiwiSaver firsthome buyer’sguide.
● IRDdocuments (GSTandIR4 returns).
Pre-approvalisanindication
Itcansometimesbehardertoget amortgageifyou’reself-employed becausethestandardeligibilitycriteria ismoresuitedto employees.Ifyou don’tqualifyforahomeloan froma bank,mortgageadviserscan placeyour business withalternativelenders.That usuallycomesatthecostof ahigher interestrate.
● Asettlement date or adate when the money is needed to pay the deposit, which is at least four weeks away
● Submit yourapplication online at least four weeks beforesettlement
Yoursavingsand employer/government contributionsareinvested byyourfundproviderand growovertime.Typically,the returnishigherthanyou’d getinatermdepositand youpaylesstaxthanyou wouldonastandardsavings account,meaningyour moneygrowsfaster
● Earn less than $95,000for asingle or $150,000for twobuyers or an individualbuyerwithone or more dependants
Theapplication process
● Apply for pre-approval beforeyou decide on aproperty to giveyou adegree of certainty about your eligibility; or
● Include asigned sale and purchase agreement
If youhavefound ahometobuy already, you willalsoneed:
4 FIRST HOME BUYERS GUIDE
● KiwiSaver contributionstatements
● Other supporting documentation relevant to your purchase.
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● Chooseahomethatfallsunder thecurrentpurchasepricecapfor thearea
If you’rebuying aproperty where you have to make progress payments at specificpoints during the build, then any funds that you’reeligible for under the First Home Grant must be held in trust or escrow by an independent organisation and not the developer
Using your FirstHome Grantonanew-build
The FirstHome Grant is overseen by Kāinga Ora and provides up to $10,000 per coupletowards the purchase of an existing first home or $20,000 fora brand-new home.
FIRSTHOME BUYERGRANTS ANDKIWISAVER
It’salsopossibleforfirst-homebuyers tousetheirKiwiSaverFirstHomeGrant topurchaselandtobuildapermanent house.Buyersneedtoliveinthehome foratleastsixmonthsfromtheissueof theCCCforthehouse.TheFirstHome Grantisthesameasforanew-build.The FirstHomeGrantruleshaveacapon themaximumcostofthelandandhome combined.
of up to $10,000 for asingleordouble that for twoormorepeople buying, providing you meet the eligibility criteria.
● Apply once you findaproperty and have asigned sale and purchase agreement.
● Proof of income
● Photo ID
● Havesaved at least 3% of your total income into your KiwiSaver for a minimum of threeyears
Getalawyerinvolvedassoonaspossible New-buildcontractsveryoftenhave clausesthatstandardsaleandpurchase agreementsforexistinghomeswillnot have.Itisbesttogetalegalopinionon thesaleandpurchaseagreementbefore yousubmityourFirstHomeGrant application.
To qualify for the First Home Grant on land you need to apply and getpre approval. Make sureyou:
Schemesthatcan contribute toward your deposit
● Supply the plans for building work or relocation related to thelandthat you arebuying
Buying afirst homeisn’t easy. KiwiSaver andother government schemes canhelp.The earlier youlearn aboutthem, thebetterprepared youcan be to use them.
BecauseKiwiSaveris lockedin,it’sagreatwayto stopyoufromdippinginto savingswheneveryou’re tempted.
Underthe First Home Grant, firsthome buyerslooking to purchase an existing home areeach eligible to receiveup to $1000 peryearfromtheir three-year savings mark,capped at $5000. Thoselooking to buyanew home or landwillqualify for $2000per yearupto$10,000 each.Where two people arebuying the house andboth qualify,the grant is doubled.
Buying anew build withthe FirstHome Grant involves afew more steps.For example, for aproperty to qualify asa new-build,itmust have received itsCode Compliance Certificate (CCC) within six monthsof the date of yourFirstHome Grant application.
Find out how theKiwiSaver First Home Withdrawal andFirst Home Grant schemes can boostthe deposit and makeit easier for youtobuy your first home.
Using your FirstHome Granttobuy land
Purchaseprice caps
To be eligible youneed to:
KiwiSaverisagreatplace tosaveforyourfirsthome AsaKiwiSavermember youcancontribute3%, 4%,6%,8%or10%of yourbefore-taxpaytoa providerandfundofyour choice.Youremployer shouldcontribute3%as well.Youcanalsomake regularorone-offvoluntary contributionstoKiwiSaver. Ifyou’reunemployedorself employed,youcanmake voluntarycontributions.
Using your Kiwisaver
If you have any questions about the First Home Grant, speak to amortgage adviser (broker) or amobile mortgage manager, who can help younavigate the application process.
Youcan only receive the First HomeGrant once. That includesits predecessors, HomeStartgrantor KiwiSaver deposit subsidy
TheGovernment contributes50cforevery $1yousaveeachyearupto $1042.86.Thatmeansup to$521.43offreemoney, whichthencompoundsand growsovertime,boosting yourdeposit.Theannual cut-offdateforKiwiSaver contributionsisJune30.
● Have afixedprice building contract showing the cost of construction and estimated start and finish dates
Thereare two ways to apply foryour First Home Grant:
How does theFirst Home Grantwork?
Additional considerations forfirst-timebuyersof new-builds
The KiwiSaver rules allow first-home buyers, or those in asimilar position, to withdraw all but $1000 from their KiwiSaver to buy afirst home.Youmay also qualify for aFirst Home Grant
What youwanttobuy must fallunder the purchaseprice capfor theregion you live into be eligible forthe First Home Grant.Thosecapswill also vary dependingonwhetheryou’re buying an existinghome or anew home Make sureyou apply early to ensure your grant is approved in time. The First Home Grant is paid out either as a deposit or at settlement.
Both First Home Withdrawal and First HomeGrant schemes can boost your deposit providingyou have been saving into KiwiSaver for at least three years andpreferably five or more.
The applicationprocessstarts online via Kāinga Ora’s KiwiSaver portal. For preapproval you will need thefollowing documents to hand:
● Acopy of the agreement or asigned sale and purchase agreement or a contract fora new build
● KiwiBuild. Thisis aprogramme toencouragedevelopers,iwiand councilstocreateaffordablehomes withinpricecaps.KiwiBuild homes aretypicallycheaperthanequivalent homesonthe openmarketandare verypopular.Allnormal KiwiSaver criteriaapplyforthe FirstHome Withdrawal andFirstHome Grant schemeson aKiwiBuild home.Tobuy one, youneedtobechosen by ballot. Moreinformationcanbefoundat www.kiwibuild.govt.nz
arenoincomeorhouse pricecaps. Whatcan youwithdraw from yourKiwiSaver? Ifyou’reeligibletomake aKiwiSaver withdrawaltowardsyourfirsthome purchasethen you’ll beabletowithdraw
Additional optionsfor first homebuyers
● KiwiSavercontributionsyou’vemade personally
KiwiSaverFirst Home Withdrawal scheme
TheKiwiSaverFirstHomeGrantis justoneofthemanyoptionsfirst-home buyerscanaccesstohelppurchase theirfirsthome.Thereare anumber ofotherschemesforfinancingpartof thepurchasepriceorprovidingmore affordablehomes.
● FirstHomeLoan. TheFirst Home Loanscheme runbyKāingaOra enablesqualifyingbuyersto purchase ahomewitha5% deposit.KāingaOra doesn’tprovidethedeposit.Instead, itprovidesaguarantee,enabling your banktolendmoretoyouthan itsnormallendingstandards would otherwise allow. LiketheKiwiSaver FirstHomeGrant,thereisan income capandaregional housepricecap.
● KiwiSavercontributionsyour employerhasmade
thefollowingprovidingyouleavebehind $1000inyourKiwiSaver savings account:
Aswellasanexistinghome,theFirst HomeWithdrawalcanbeusedtobuyanewbuild,landyouintendtobuildon,ortobuild ahomeonmultiple-ownedMāoriland. there
TheFirstHomeWithdrawalschemeenables first-homebuyersand othersin asimilar financialpositiontowithdrawallbutthe last $1000ofKiwiSaverfundsfor thedeposit ortowardssettlementontopof anyFirst HomeGrantentitlement.
● FirstHome Partner is another governmentschemethatallows qualifyingbuyerstoshareownership of abrand-newhomewithKāinga Ora.KāingaOrabuysupto25%ofthe propertythatyou’reinterestedin, and becomesaco-owner on thetitle.Over time,thehomeowner willeventually buyout Kainga Ora’sshare.
● Anyfeesubsidiesyou’ve received
Applying fora First Home Withdrawalgrant
Beforeyouapplywithyourscheme providerfor aKiwiSaverFirstHome Withdrawal,youwillneedthefollowing readytogo:
● KāingaWhenuaLoan Scheme. The KāingaWhenuaLoanSchemerun byKāingaOra and Kiwibankhelps Māoribuildor relocatehomesonto ancestralland.Ifyou’reeligiblefora KiwiSaverFirstHome Withdrawal, youcan alsoputanyfundsobtained that waytowardsthepurchaseofa KaingaWhenuaproperty.
● Thegrowthyou’veearnedonyour KiwiSaverfunds
● Certified photoID
● Certified proofofaddress
● Yoursolicitor’strust accountdetails
● Acopyofthesaleandpurchase agreement foryour property
Yourmortgagebrokerormobile mortgagemanager willconfirmthe amountthatyou needtowithdraw. Once youhaveapplied,yourscheme providerwillliaise withyourlawyer. Themoneyispaidbytheproviderinto your lawyer’strustaccount.
Someprevioushomeownersina similarpositiontofirst-homebuyers mayalsoqualifyfortheFirstHomeGrant andFirstHomeWithdrawalschemes.
● Governmentcontributionstoyour KiwiSaveraccount,and
Whatdoyouneed to make aKiwiSaverFirst Home Withdrawal? TheeligibilitycriteriaforFirstHome Withdrawalisthesameas theFirstHome Grant,except
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Theyinclude:
The average property value varies according to suburb. Some suburbs wherethereare alot of large expensive homes with water views have ahigher average property value, while others on city fringes or dominated by apartments have alower average property value. But most suburbs have arange of properties within them,which means that even the most popular and expensive suburbs have options for first-home buyers.
● Some homes bought off the plan can be alteredduring the build.
Buying your first home is abig step in life. It will take time to find the right propertyinthe right suburbata price you can afford.
● Whereare the nearest parks, beaches or other recreational areas?
Freehold: Most traditional homes in New Zealand arefreehold whereyou own the house and the land it sits on.
and may even limit things likepet ownershiporpaint colours
To get an indication of what a property is worth, searchfor it on OneRoof.co.nz. TheAVM(automated valuationmodel) will giveyou agood indication of what the property is worth, while recent sales information will tell you what propertiesare selling for in individual suburbs.
You’ll almostcertainly need to make compromises and start your journey with amoremodest home. That might be an apartment or terrace house to begin with beforeyou can trade up the property ladder to astandalonehome in your suburb of choice.
● 10% Deposit. You’ll typically only pay a10% deposit on anew home instead of 20% requiredfor existing homes under the ReserveBankof New Zealand’s loan-to-value ratio (LVR) rules.
Think of howyou could compromise. Forexample, you mightbe able to movefurther out of town where homes arecheaper if thereisgood public transport.
Buying off theplan
Whatare bodycorps?
● What is the proximity to public transport or main highways?
Therearethreemain propertytypesin NewZealand: Freestandinghomesare generallythemostsought afterinNewZealandand sitonlargerpiecesof land,whichmeansthey costmore.Thesmallerthe sectionthelowertheprice, whichiswhytownhouses willusuallybecheaper thanastandalonehome andapartmentsandflats thecheapest
Finding thebest suburb foryou
With many apartments you needtobudget for annual body corporate levies, which cover the building management, upkeep of shared areas and lifts, insurance and maintenance costsofthe building.
Buying off the plan means you sign up to buy ahomewhen it’saplan only and isn’t built.Yousign asale and purchase agreement upfront and pay adeposit to securethe property,but don’t settleuntil the home is built.
● What about local shops, cafes and night life?
Workingout prices
Consider what’s important to you in a suburb. Depending on yourstage of life and priorities,different amenities might be important to you.
● Which schools areinzone?
Ask yourself questions such as:
FINDING THE RIGHT PROPERTY
Your lender will take into account the body corporate fees when assessing how much youcan afford to borrow.Don’t letbodycorporate fees putyou off buying.You’d needtospend moneyeachyear on maintenance of ahome,somay find the cost of owning is little different whether thereisabodycorporate or not
We’d all like to liveinabeautiful home in aperfectlocation.Your firsthomeis not your forever home, however
All owners in unit title developments, suchas apartment buildings, automatically become members of thebody corporate.
Freehold,leasehold or crosslease?
Leasehold: is where you own the building, butnot theland.Youpay annual ground rent to the landowner Leasehold is common overseas,but apart from someapartment buildings isn’t oftenseen in New Zealand. The lease may be fora fixed number of years, such as 100,after which youno longerhave theright to havea home on it.Orthe lease can be in perpetuity The shorter the lease and the higher the groundrent, thelowerprice thehome will fetch when sold.
Cross lease: This is aform of home ownership whereeach home on a cross-lease section owns ashare of the underlying land. Historically these came about whensomeone subdivided their section into two or three. Instead of eachowner buying theland beneath their home, they took ashareinthe entirelandand alease for thebuilding Some New Zealanders arehesitant to buy cross leased properties because the ownershipstructurerestricts them from alteringorextendingtheirhome,
This hassomeadvantages forfirst-home buyers.
Youmay have grown up dreaming of owning astandalone home on aquarter acresection, but to get on the property ladder you may need to begin with an apartment, or terrace home, that is joined to neighbouring properties.
● Brand-newhomes come with a guarantee against defects,and usually they won’tneedmuch in the wayofmaintenance for thefirst sevento10years.Thiscan be abonus in theearly years when mortgage repayments can be adrain on finances.
The different typesof property
Gettingstarted
18 OneRoof.co.nz
FREE STANDING HOMES arethemostcommon stylesofhomesinNew Zealand.Theyare detachedandsiton theirownsection. TOWNHOUSES arehomesthathave theirownexittooutside, butareusuallyconnectedto theneighbouringproperty. Usuallyit’saterraceof townhouses.
Before you gettoo far into your house-hunting journey,find out how much you canaffordtopay for ahome and how much you canborrow by checking with your bank or mortgage adviser(broker).They will look at your savings, salary,spending,and the variouscosts associated with buying homes such as lawyers’ fees and moving costs. Banksalso have useful calculators on their websites thatcan give you ageneral indication of how much you mightbeapproved to borrow
5 FIRST HOME BUYERS GUIDE
FLATS AND APARTMENTS areusuallyhomesin multi-unitblocks orhighrise buildings.
● The homeissmallerthanitappeared inthe “renders”onthemarketing material,oritis poorqualitywhen built.
Ifit’s astandalonehome you mightbeabletochangethedesign orarrangeforcosmeticorappliance upgradesatyourcost.
floororcarparkplans,thedeveloper usesthe‘specificationslist’to substituteitemsthatarenotalways like-for-like
● A“sunsetclause” is invokedbecause thebuildhastaken toolong,and thedevelopercancelsthesaleand purchaseagreement.Itmaybe considerablymoreexpensivebythen tobuyanotherhome
● Thebuildisdelayedandyourpreapprovalforfinance runsout
OneRoof.co.nz 19
Building ahouse as afirst-home buyer
● Otherissuessuchasfailuretogeta
● Typically it’s cheaper to buy ahome off the planthanonce it’s complete. Thisisbecausedevelopersneedto secureapercentageofpre-salestoget theirfinancetobuild.They’reoften willingtosellslightlymorecheaply tothefirstbuyerswhosignsaleand purchasecontracts.
NewZealandhasalongstanding traditionofgetting ahouse builttoyour ownspecifications.Youeitherbuya houseand landpackage wherethehome isbuilttoyourliking,oryoubuy the landseparatelyand employanarchitect andbuilder, orchoose agroupbuild home.
● Thedevelopergoesbustanddoesn’t completethe build
● Therecouldbebudgetblowouts
Getting amortgage
● “Materialdifferencesclauses”are usedtomakechangestoproposed
Typically,youwillpay a10%deposit andthenprogresspaymentsasthebuild progresses.Banksoffer construction loansdesignedtopayforthebuildin stages.It’sa goodideatoseekadvice from amortgageadviserorbank’s mortgage managertoensureyou understand howtheseloansworkand getthemostappropriateoneforyour situation.
● The projectmaybedelayedandyour pre-approval runout
Youcan useKiwiSaverFirstHome WithdrawalorFirstHomeGrant to paythe deposit,andorwithdraw at settlement.TheKiwiSavermoney mustbeheldintrustorescrowby the developeruntilthecertificate of titleand theCodeCompliance Certificate(CCC)
Theadvantageofbuildingisthatyou get ahomethat’suniquely yoursinthe locationofyourchoice.Butthereare risks:
Therearepotential downsides to buying offtheplan
10-year-guaranteeon thework Averyspecificriskforfirst-home buyersusingKiwiSaveristhatthe costtobuildincreases(thanksto“cost adjustments”clauses)anditexceedsthe pricecapsfortheFirstHomeGrant.This couldspelldisastersobecareful.
● KiwiBuild: Youcangointo aballotto buy aKiwiBuildhomeoff theplan. Theyaretypicallypricedlessthanan equivalent homebeingsoldonthe openmarket.
Buyingoff theplan ismoreriskythan buying aturnkey (completed)home.
● Thebuildermightdopoor workmanship,or
CanyouuseKiwiSaver to builda house?
Someofthoserisks are:
Whencalculatingthe costof buying ado-up house, makesure youfactorinthecostof renovating. Youcanonlyborrow topayfor renovations ifyou’renot already stretchedtothelimit.Bankswill runyourapplication throughan affordabilitycalculator andifyou don’thavesufficientequityand/ or income to make repaymentsyou won’tbe abletoborrowmore.
FIRSTHOMEBUYERSGUIDE
● Apre-purchase report(AKA building report) canidentify defectsin ahome.It’sbesttoget yourownand notrely on one providedbytheseller.Aprepurchaseinspectionby abuilder willhelpyou avoid expensive mistakesbybuying aproperty with expensiveproblemssuchas rot,leaky roofs,oldwiring, and wornoutpipes.Itcanalsogiveyou negotiatingpowerwhenbuying, or helpyouchoose betweentwo properties.It’spainfultopayfor apre-purchaseinspectionbecause itcouldcost$1000or more,justto missout,and need anotherone on the nextproperty.
ManyhomesinNewZealand aresold without apriceonthembyauction, tenderordeadlinetreaty.Itcanbeha knowwhattobidorofferinthatcase.
areissued.Oncethathappensthe saleis settledandthebuyercanmovein.
be sold hardto se n? ouncil b) yo couldaffordmore.
hers very e ng. u ou 20 OneRoof.co.nz
Aregistered valuationwillhelp ensure youa)don’tpay toomuchfor ahomeand b)don’toffertoolittleandloseoutifyou
Thecost of renovatingdepends onthe scopeofthework.Some renovationsareaestheticandothers arestructural.Thelattercanbevery expensiveindeed.
Banksoftenrequirearegistered valuationbeforetheywilllendona property. That’stoensurethatshouldyou defaultonyourmortgage, theycansell thepropertyand recouptheirmoney. If you arebuyingthehouseformorethan thevaluationit’sunlikelyyou’llbeloaned asmuch moneyas youexpect.
Discoverthousands ofproperty listingsright acrossthe countryand FREE estimated valuesbasedonthe very latest sales figures. Download theOneRoofapptoday.
calledthegovernmentvaluation(GV) orconfusinglybecauseofitsacronym, theratingvaluation(RV),areproduced forratingspurposes.Theydon’tgive anaccurateindicationofhowmucha propertymightsellfor.Youcanalsoget insurancevaluations,whichtellyouthe costto replacethehomeifit’sdestroyed. Realestateagentscan giveyouan estimateof what ahouse mightsellfor. Registered valuations(RV)are betterto relyon.Theyoftencost around$1000, but willgive amoreaccurate valuationofthe home. Valuersare trainedtoassess the marketworthof apropertybasedonan inspectionandcomparablesales.
WhydoI needone?
● Theproperty file contains all thedocuments that relatetoa LIM reportsuchas building and resourceconsents,and correspondence withthecouncil aboutthe property. Be aware thatbuildingworkdonewithout consentisn’tincluded in thefile.
When aregisteredvaluervisitsthe propertytheydoalotmorethansimply compareittonearbyhomes.They willlookatthesizeandconditionofa property,itslayout,elevation,views,and surroundings.
Thetwomainadvantagesoffixer-uppers arethattheycanbepricedconsiderably cheaperthansimilarhomes,andyou cangrowyourequityinthehomeby doing renovations.Onthedownside, youwillfindthatdoingup ahomeis nowherenearaseasyasitappearson TV renovationprogrammes.Renovators oftenunderestimatethecostandtheir ownskills.Bylawmanyjobs requirea licensedbuildingpractitioner(LBP)such as abuilderorelectrician.Theycanbe expensive.
How much does it cost to renovate?
Valuations
Buying to renovate
What it’s worth.
Homescanbevaluedfordifferent purposesandit’s importantto understandwhattheymean.Thecou valuation(CV),whichcanalsobe
Whathappens
Building reports andLIMs
izeandconditionofa tslayout,elevation,views,and
hansimply
What’s forsale.
Pros and cons
Whatisahousevaluation?
Manyfirst-homebuyersoftenbuyfixeruppersas awayofgettingontheproperty ladderat alowerprice.
Yourhomeis averybiginvestment. It’s agoodideatoget reportsdoneto ensureit’singoodorderandthereare nosurprises.
at ahouse valuation?
● ALandInformationMemorandum (LIM) is afile heldbylocalcouncils thatsummarisestheinformation heldonthatproperty. Itcontains arangeofinformationsuchas rates information,stormwaterand seweragepipeson theproperty, consents, andpotentialerosion, subsidence, slippageorflooding, andthepossiblepresenceof hazardousmaterials.
Theteam at Succulent StylingHomeStaging transformhouses into homes. We know howbuyers thinkand we know whatworks.
OneRoof.co.nz 21
succulentstyling.co.nz succulentstyling@gmail.com 0211499717 We service right across the whole Whanganui-Manawatu region WHANGANUI HOMESTAGING Succulent Styling
Local.Experienced. Defining.
Biddingatauctionisoneofthemost commonwaystobuypropertyinNew Zealand.Atauctionyoubidagainst otherstobuythehome.Theauction isrunbyanauctioneerwhoopensthe biddingatafigurethatisusuallyless thanthereserve,thepricetheselleris willingtoaccept.Eachbidneedstobe higherthanthepreviousbid.
● Securing finance
THE BUYING PROCESS
Anofferby negotiationor tenderisnotlegally bindinguntilitis acceptedandboth thebuyerandseller signthesaleand purchaseagreement (contract).
Whether you’rebidding at auction or making an offer,you’ll need your ducks in arow to win that dreamhome
Once both buyer andseller have signed, thecontract is “unconditional”. This meansyou can’t back out evenif you change your mind. Buyers willneed to paythe deposit as soon as thecontract is signed.
An offer by negotiation or tender is not legally bindinguntil it is accepted and both the buyer and sellersign the saleand purchase agreement (contract).
Buying ahomeis abigcommitment and thereisquiteabit thatcould go wrong. Alawyer works for you and checks the sale and purchase agreement, the title, the LIM, and does the transfer of the property on settlement day.It’sbest to choosea specialistproperty lawyer to do this work.
You’ve fallenin lovewith aproperty and want to buy it.You’ll need to have your ducks linedup. That includes your mortgage, your KiwiSaver withdrawal, FirstHomeGrant if you qualify,aproperty inspectorto write a pre-purchasereport, anda lawyer (or conveyancer) to handlethe salefor you.
● Early access to do renovations prior to settlement
Sellers tend to prefer unconditional offers or at leastas few conditions as possible. As aresult, your offer is more likelytobe accepted if it has fewer conditions.
Offers aremade to the vendor via the real estate agent who is selling the property.The offer is made on asale and purchase agreement document, noting any conditions, such as subject to finance, building reports, LIM (land information memorandum), or due diligence (investigation). The seller can either accept your offer,ormake a counter offer Buyer and seller continue to negotiate in this wayuntil an agreement is reached. If you areinamulti-offer situation wherethereare other potential buyers you might need to put your best offer on thetable early
Sale and purchase agreements for new-builds areoften bespoke and could
22 OneRoof.co.nz
can accept or negotiate on(called countersign or counter offer).
Trynot to become too attached. If you’rebidding at auction, youmay not win. Propertysales fall through for other reasons as well, such as the vendor asking too much, or hidden issues that the property inspector or lawyer discovers.
Sold by negotiation
Buying at auction
Whathappens after youmakeanoffer?
Beforemaking your starting offer,it’s averygood idea to get your lawyer to check the contract and property records of title (showing ownership and other information).Your lawyer will also check the title for any defects.
How to make an offer on ahouse
Getting started
Whenbuyingatauctionyouare usuallybuyingunconditionally,so youcannotbackout.Sometimes thesellerwillagreetoavariation ofagreementinadvance,suchas alowerdepositamount,orthe settlementdate.
Buyers should notmake offers on multiple properties at the same time, because they areduty-boundtobuy both properties if theoffers areaccepted.
have worrying clausesthat alawyer will spot
Typesofoffers youcan make Unconditional and conditional offers
If the house isfor sale by negotiation, you offer an amount you areprepared to pay.Usually you don’t makeyour best offer immediately
6 FIRST HOME BUYERS GUIDE
Iftheauctiondoesn’treachits reserve,itwillveryoftensellshortly after,bynegotiationwiththehighest bidder.Sometimesconditional buyerswhoneedtimetogetfinance willbeconsiderediftheauctionfails toresultinasale.
Ifyouwinatauction,youwillneed topaythedeposit,usually10%,on thesameday.Youwillalsohaveto signthesaleandpurchaseagreement.
Your offer canbeunconditional, or conditional. Some of the common conditions include:
● Getting asatisfactory building report
Legalfeesand paperwork
Othermethods of sale
Some properties aresold at tender or by deadline sales (also called “treaties”). With atender youmake writtenoffers by acertain date, which areconsidered by the seller.Adeadline sale is similarwithbuyers able tomake an offer any timeuptothe deadline.
When ahouse is sold by negotiation, buyers make offers whichsellers
● Asunset clause which voids the agreement afteracertain period of time
Most existing homes in New Zealand aresold using thestandardADLS/ REINZ Sale Purchase of Real Estate Agreement. Eventhen, therecan be different clausesused.
● Alonger than normalsettlement period
Sold at tender or ‘bydeadline’
For tenders and deadline sales you usuallyonly getone shot at making an offer,soneed to make it your best first time. The seller chooses between the offers presented.
Settlementdayiswhentheproperty transferstoyou and it’sofficiallyyours. Itcanbe along nerve-wrackingday in which alot happensbehindthescenes. Thebuyer’slawyerneedsto arrangeforpaymenttobetransferred totheseller’slawyerandin return thetitle transferiscompletedand
Discoverthousands ofproperty listingsright acrossthe countryand FREE estimated valuesbasedonthe very latest sales figures. Download theOneRoofapptoday.
Thecostof conveyancing istypically $1000to $1500. OneRoof.co.nz 23
Oncesettlementiscompleteyoupick upthekeysandcanmovein.Sometimes itpaystobook removalvansfortheday aftersettlement,justincasethings go wrongonsettlementdayandyouwaste yourmoney.
Thecostofconveyancing istypically$1000to$1500. Somelawyersoffer acheaper service,butmaychargeextra for‘disbursements’suchasLand InformationNewZealand(LINZ) feesandotherexpenses.
Afewdayspriortothehome becomingyours,youwilltodoa pre-settlementinspectiontoensurethe houseis intheconditionitwaswhenyou agreedtobuy.
What it’s worth.
What happens at settlement?
thekeys released.Thatsounds straightforward,buttakestime becauseofthenumberofsteps needed.Ifonesideisnot ready tosettle,theycanbecharged penalties.
What’s forsale.
Thevastmajorityof purchasesgothroughwithout problem,butsometimes thingscango wrong,suchas thesellerortenantsfailing tomoveout, rubbishleft behind,newdamagetothe property, ormissingkeys.In circumstancessuchasthesethelawyers willnegotiateto reach asatisfactory resolutionbeforethesettlementgoes through.
Buying andsellingpropertyisful thatcancatchyouout.The prop MooreLawcanhelpyouthroughthesaleand purchaseprocessforboth re andcommercialproperty. ThistimeMoorereallydoesmeanmore. Experience.Expertise.PersonalService. Tel.(06)3490012 www.moorelaw.co.nz GET M O O R E LAW isfullofpitfalls propertyteamat oughthesaleand esidential Whenitcomestobuyingorsellinga property,youshouldalwaysgetMoore. TalktoRob at MooreLawtoday forexpert,friendlyadvice. Talkto theteam today 24 OneRoof.co.nz
A‘NO’ATONE BANK ISN’T A‘NO’ATALL BANKS
Itdoesn’tmatterwhereyouareonyourhome-buying journey;checkingyourbudgetisagoodidea.Ifyou’re startingout,controllingyourspendingwillmeanyour depositgrowsfaster.Ifyou’realmostreadytoapply,a goodbudgetwillmeanyoucanborrowmore.Removing a$10,000creditcardlimitcanincreaseyourmortgage
aybeyou’vejustdecidedtostartsavingfor ahouseorhavebeensavingforawhile Whicheveritis,youwillwanttoknowhowto takethefirststeptowardshomeownership.
Nowthatyo control,it’sti helpfromKā not;checkth parents,forexample,canhaveearnedupto$150,000in thelast12monthstoqualifyfortheFirstHomeLoan.This wouldmeantheyonlyrequirea5%deposittopurchasea house.IsuspectthousandsofpeopleacrossNewZealand qualifyforoneoftheKāingaOraschemesthatcouldget themintoahouseanddon’trealiseit.Thesepotentialhome buyerswillbescramblingtogethera10%or20%deposit whentheycouldbeintheirhomenow
affordability spendby$50 abilityby$30 quicklyaddu Onceyouha lookingatyo andhirepur thatallowsy moneyyouw creditcardlimi howmuchyo unusedcards meagreamo worththeeff
Finally,it’stimetofindouthowmuchmoneyyoucan borrow.Youcanchattoyourbankortalktoanadviser
sometimesitcanbeassimpleastheydon’thaveenough moneytolendoutthisweek.Ifyouknowwhyyouwere declined,youknowwhatitwilltaketofixit Nothingisstoppingyoufromapplyingwithmultiple lenders,butitmaymeantheybrushyourapplicationaway morequickly.Ifabankcanseeasmallissuewithyour applicationandtheyaretheonlylenderyouaretalkingto, theymayworkwithyoutoapprovetheapplication.Ifthey knowtheyareoneofmanylendersyouareworkingwith, chancesaretheywilldeclinetheapplicationandmoveon tothenextone.Gotothebestlenderfirstandapproach othersifrequiredtoafterthat
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Some aremoreconservative than others when it comes to mor and if your application is declined, always ask the reason, writes OneRoof.co.nz 25
Herearethefundamentalsofwhatyouneedtoknow Gettingamortgagecomesdowntotwothings.Your incomeandyourdeposit.Inotherwords,doyouhave enoughincometopayforyourfuturemortgage?Anddo youhaveenoughsavingstomeetthebankcriteria? Itseemsintuitivetostartwithyourdepositbecausethere issuchaclearlineinthesand.Youcan’tbuyahouseifyou don’thaveacertainpercentageofthepurchasepriceasa deposit.Formostpeople,theminimumdepositis10%.A 20%depositmakesgettingamortgageeasier-youarea saferbetforthebanks-butdon’twriteoffhomeownership ifyouonlyhave10%.Evena5%depositispossibleifyou meettheKāingaOraFirstHomeLoancriteria. Butifyou’reconsideringbuyingahome,myadviceisto startbyreviewingyourincome.Yourhouseholdincome (andexpenses)willdictatehowmuchyoucanborrowfrom thebank,whichwilldictatehowmuchdeposityouneed Therefore,beforeanythingelse,thefirstthingtodoistoget yourbudgetinorder.Knowexactlyhowmuchhascomein andgoneoutofyouraccountoverthepastthreemonths. Thebankwilltakeyourspendingintoaccountinyour application.Makesureyouknowwhatyou’respending yourmoneyon.
HE HOUSING market decline has accelerated and across the country New Zeala valuedropped months to $1. activity collaps Figuresfro ValocityHouse drops in 15 of with significant in Wellington andAuckland.
Themost expensivesuburboutside ofAuckland is Queenstown-Lakes' KelvinHeights(down2.2% over the quarterto$2.6m)
THE BIGGEST WINNERS, BIGGEST LOSERS
James Wilson,head of valuations at Valocity, OneRoof's datapartner,said: "Almost half of thevalue gains made in the last 12 months have been wipedout by the slump, with the nationwide average propertyvalue down 5% -$55,000 -since peaking in February
"Wellington’s newest homeowners arelooking particularly vulnerable. Forthe second month in arow, housevaluesinthe region weredownyear on year,with the 5.6% drop recorded in the 12 months to the endof August the region's biggestyear-on-yeardecline since.
Wilson said: "Fifty eight out of 72 territoriallocal authorities were in negative growth territory over the quarterand propertyvalues in five weredown year on year.Properties in Lowerand Upper Hutt, Porirua, Wellington and Palmerston North areworthless now than whatthey were ayearago."
NZ’S MOSTEXPENSIVE
MOST EXPENSIVE: Herne Bay,inAuckland. Photo /Fiona Goodall
ONEROOF VALOCITY HOUSE VALUE INDEX
The total number of newmortgages registrationsincluding first-home buyers, investors andmovers -had droppedfrom26,000 in the threemonthstothe endof June to 21,000 in thethree months to the end of July
Thefigurescited belowonly cover suburbs with 20plus settled sales in thelast 12 months.
Thecapital’s average propertyvalue dropped11%
Nationwide, moversmadeup 16.5% of new mortgage registrations in thethree months to theend of July, while investorsmade up 25.6%, and thosere-entering the market made up 2.9%.
Thenumberofsettled sales in the last quarter was13% down on the quarterprior and 31%down on thesame quarterlast year."Moretelling is thefact thatsales were 24% down on the same quarter five years ago," Wilson said. "Auckland, which accounts for the bulk of sales activity in the country, recorded almost 8% fewersales last quarterthan it didduring the same three-month [period] in 2017, whenthe city's housing market was in the midst of aslump."
"Worse still, thelastsix months have wipedout more than40% of the$350,000valuegains Wellingtonians made during thepost-Covidboom. Those whobought around market peak with aminimumdeposit maynow find themselves in negative equity,and runthe risk of incurring real losses if forced to sellinthe current market environment."
26 OneRoof.co.nz
Nelson's average propertyvalu biggest quarterly drop after Greater followedbyHawke'sBay (down (down4.4%).
Forty-sevensuburbs with 20 or more settled sales in the last 12 months have an averagepropertyvalue of $2m and above -down from 53 threemonths ago.Ofthe current crop of $2m-plus suburbs, just foursaw value growth over thequarter, and only eight areinabetter position now thanthey weresix monthsago.Values in six $2m-plus suburbs -all of which areinAuckland -are down year on year
($151,000) over the quarter to $1.137m, and is down 6.3% ($76,000)year on year. The valuedecline in Tauranga over thequarter was 5.6%, andjust over 4% in Dunedin House values in Hamiltonand Christchurchdropped2% and1.1%respectively
Almost half of the value gains made in the last 12 monthshavebeenwipedout by the slump.
Auckland’s average property value was down 4.3% over the threemonths to theend ofAugust -its sixth successive quarterly decline since theend of March -and is up just 2.3% year on year
"Some 7600, or 38.5%,ofall new mortgagesissued between Mayand July this year weretofirst-home buyers, compared with 7800, or 36.9%, in theprevious three-month period.
Suffering the country's biggest Wellington. Theregion'saverag 9.1% over thequarter,ending its $1m club
With an average property value of $3.9m, Herne Bay is New Zealand’s most expensive residential suburb, but the downturn has madehouses thereless expensive. The wealthy enclave has in the last three monthslost its status as NZ’s $4msuburb, withits average property value dropping 5.7% ($236,000) overthe quarter,and 6.91% ($290,000)in the last sixmonths.Year on yeargrowth for the suburb was4.4%,so those who bought lastSeptember have stillcome out$164,000 ahead.
dgrowth in thethree months est Coast (up 2.5%,to$403,000). dfromsix months agowhen and onlyAucklandwas on the .The region taking the biggest average propertyvalue verthe quarterto$992,000 -the low $1m since May 2021 rritorial local authorities,14 the threemonths to theend of wereinWest Coastand Otago, bury, and Waikatodistrict, in fthe rankings forthe second growth of 13.2% and7.3% was at the bottom of the heap, valuedown11.7% ($151,000) otherTAs also suffered doubleand Otorohanga,bothin
GreaterWellington was also the down year on year,but it won't regions follow suit.
"It'sabig drop from the10,500 mortgagesregisteredto first-home buyers 12 months ago,whenthe buyergroup represented 39.9%ofall newmortgages."
NZ’S CHEAPEST
HOUSING MARKET'S WINTER FREEZE
Wayne Shum, head of research at Valocity,said that the volume of mortgage registrations wasfalling fast.
Only West Coast, NewZealand's market, managed to escape thed average property value up 2.5%( quarterto$403,000.
Of the country's seven majormetros, only one, Queenstown-Lakes, avoided thewinter chill. Itsaverage propertyvaluegrew1.8% ($33,000) in the last three months to $1.878m.
Shum saidthe decline was in line with declining sales andrising interest rates. "Beforeweentered the Delta lockdown the market was stillpumping.Itwasn't until thewhole Delta lockdown was hanging aroundthat peoplestarted having doubts, especially inAuckland."
Runanga, in Grey,retains its crown as New Zealand's cheapest placetobuy,withthe town's average property value sitting at $233,000. Value growth over the quarter was 1.7%, adding another $4000 to the price of atypical home there. While the property boom hasn’tadded hundreds of thousandsof dollars to the value of Runanga homes, residents who bought in the town post-lockdown, when the average property value was $165,000,aresitting on atidy $68,000 gain. Just four other towns andsuburbs have an average property value of less than$300,000: Mataura, in Gore($242,000);Cobden, in Grey ($252,000); Blaketown, alsoinGrey($270,000) andKaitangata, in Clutha ($286,000).
olumestumbled from 98,450 in the Julyto95,455 in the12months he 2605suburbscovered in 20 or moresettled salesover onth period, while 597 had one or none.
At $1.043 million, New Zealand’s average property value is 4.7% ($47,000) aheadof whereitwas this time last year, but the downturn is eating away at the gains made late
last year and early this year, with $40,000 lost inthe last ontinued decline at current pace could magic $1mmark beforethe end of
Wilson said hesitancyamong buyers, drivenbyrising interest rates, an inflation rate of morethan 7% and fears about the wider economy,was resultinginfewer sales, which in turn was putting downwards pressureon propertyvalues.
OutsideofQueenstown-LakesandChristchurch, heatinthemajormetrosisbecomingharderto find.No suburbinDunedin, Taurangaor Wellington recorded valuegrowth overthequarter,whilethenumberof growthsuburbsinAucklandandHamiltonwasthree andone respectively.
Whatthemaptells
FALLINGFAST
LakeHayes,in Queenstown-Lakes,enjoyedthe biggestdollar gainoverthequarter,withitsaverage propertyvaluerising $147,000to$2.48m.
Northland $893,000 -2.9% Auckland $1.452m -4.3% Waikato $981,000 -0.6% BayofPlenty $1.040m -4.4% Gisborne $706,000 -3.2% Hawke’sBay $869,000 -5.2% Taranaki $723,000 -1.0% ManawatuWhanganui $659,000 -4.1% TasmanWellington $994,000 -2.0% Marlborough $795,000 -1.4% Nelson $869,000 -5.9% WestCoast $403,000 +2.5% Canterbury $786,000 -1.1% Otago $952,000 -0.4% Southland $520,000 -2.3% $992,000 -9.1%
INDEMAND
KaikouraFlat,inKaikoura,Canterbury,recordedthe strongestgrowthoverthequarter,withthesuburb’s averagepropertyvalueup11.7%to$870,000.Growthwas alsostrongin MeremereandPukekawa,bothin Waikato district,buttheoverallnumberofgrowthsuburbs droppedfrom223inthethreemonthstotheendofJuly to 157inthethree monthstotheendofJuly.
Ofthe71suburbswithanaveragepropertyvalueof lessthan$500,000,49experiencedvaluedeclinesover thequarter.Thedownturnhasalsowidenedthepoolof “cheap”suburbsinthecountry’smostexpensivecity, withthenumberofAucklandsuburbswithanaverage propertyvalueoflessthan$1mupfrom17sixmonths agoto24now.
Theaveragepropertyvaluein 158suburbsislowernowthan whatitwas ayearago, withRoseneath,in Wellington,suffering thebiggestdollar dropyearonyear -adeclineof $216,000to $1.71m.
you Themapshowsthecurrentaverageproperty valueforeach region,andgivesthethree-month change.Thedifferentcoloursonthemapexpress thechangeinhousevaluesineachlocation. All NZ -3.7% $1.043m OneRoof.co.nz 27
2%+ 1%+ 0%+ -1% -2% -3% -4% -5% -6% -9%
Northland,inWellington,isthehousingmarket’s weakestlink.Thesuburb’saveragepropertyvaluefell 15%($220,000)to$1.24m in thethreemonthsto theendofAugust,andisdown5.6% year on year.Another64suburbs, mostlyinGreater Wellington,sawdouble-digit declinesoverthe quarter,up from52inthethreemonthstothe endofJuly.Thesuburb thatlostthemostdollars was TotaraPark,inAuckland'sManukaudistrict, withitsaverageproperty valuedropping$299,000 overthequarterto$2.47m.Allup768suburbs lostacombined$44moverthethree-month period,withvaluesdropsof$100,000-plus recorded in131suburbs.
ONERAHI
RUAKAKA $1,045,000$1,077,000$899,000 3.0%16.2%95
PUKENUI $791,000$761,000$633,0003.9%25.0%20
WHAUVALLEY $765,000$808,000$713,000 5.3%7.3%51
NORTHLAND
TUTUKAKA $1,497,000$1,451,000$1,223,0003.2%22.4%50
$893,000 13%%
$1,452,000 2.3% AVERAGEPROPERTY VALUEYEARON YEARCHANGE 28 OneRoof.co.nz
MOUNT ROSKILL $1,312,000$1,331,000$1,276,000 1.4%2.8%311
CURRENT AVERAGE
KAWAKAWA $503,000$511,000$445,000 1.6%13.0%33
MISSION BAY $2,437,000$2,626,000$2,352,000 7.2%3.6%86
NORTHLAND’S average property valuefell 2.9%to$893,000inthelastthreemonths. That's still$103,000 upon ayearago(and$271,000abovetheAugust2020figure),but thepaceofdeclinehasincreased sincetheregionfirst slippedintonegative growth territoryinApril.
KINGSLAND $1,556,000$1,658,000$1,562,000 6.2% 0.4%70
GREATER AUCKLAND’S averagepropertyvaluefell4.3%($66,000)to$1.45minthe lastthreemonths.Housevaluesinthecityare8% belowwheretheywereat thestart oftheyearandonly2.3%abovewheretheywereinSeptember2021.
LYNFIELD $1,481,000$1,568,000$1,423,000 5.5%4.1%50
NEWWINDSOR $1,405,000$1,501,000$1,343,000 6.4%4.6%58
Draggingthe regiondownisWhangarei,wheretheaveragepropertyvaluedropped 4.4%($43,000)overthequarterto$934,000.Ofthe28suburbsinthe TAthathad20or moresettledsalesoverthepast12months,onlyone, Tutukaka, registeredvaluegrowth inthethreemonthstotheendofAugust -a healthy3.2%lift to $1.49m -but 11 suburbs fellharderthanthe TAaverage.
GREYLYNN $2,021,000$2,136,000$1,986,000 5.4%1.8%222
Of theAucklandsuburbsthatrecorded20ormoresettledsales in thelast12 months,three -GreatBarrierIsland(AoteaIsland),CoatesvilleandPollok -sawvalue growthoverthequarterwhile TotaraParksufferedthebiggestquarterlydrop,10.8% to$2.47m.
WHANGAREIHEADS $1,221,000$1,261,000$1,071,000 3.2%14.0%38
PARAHAKI $850,000$881,000$757,000 3.5%12.3%27
The region'smostexpensivesuburbisLangsBeach(averagepropertyvalueof $2.39m)anditscheapestisKaikohe(averagepropertyvalueof$385,000).
$701,000$720,000$653,000 2.6%7.4%140
AHIPARA $666,000$674,000$538,000 1.2%23.8%28
TIKIPUNGA $683,000$704,000$626,000 3.0%9.1%196
KARIKARIPENINSULA $812,000$807,000$633,0000.6%28.3%88
Propertyvaluesin41suburbsarelowernowthantheywere inSeptemberlastyear, withManurewaEastdownthemostyearonyear(-9.7%to$798,000).
GRAFTON $711,000$761,000$768,000 6.6% 7.4%70
REGENT $763,000$815,000$698,000 6.4%9.3%38
FARNORTH $797,000$803,000$675,000 0.7%18.1%1435
WAIPAPA $1,130,000$1,117,000$934,0001.2%21.0%65
RIVERSIDE $812,000$869,000$758,000 6.6%7.1%23
GREAT BARRIERIS. (AOTEAISLAND) $842,000$833,000$715,0001.1%17.8%49
GREATER AUCKLAND
HARURU $865,000$874,000$739,000 1.0%17.1%45
KERIKERI $1,129,000$1,156,000$985,000 2.3%14.6%331
KAITAIA $468,000$455,000$376,0002.9%24.5%136
WAIPU $1,274,000$1,334,000$1,114,000 4.5%14.4%103
MOUNTWELLINGTON $1,113,000$1,150,000$1,088,000 3.2%2.3%375
TAMATERAU $1,261,000$1,310,000$1,111,000 3.7%13.5%23
OKAIHAU $785,000$785,000$655,0000.0%19.8%31
THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
RAUMANGA $571,000$602,000$512,000 5.1%11.5%64
OPONONI $567,000$586,000$484,000 3.2%17.1%30
MOUNTEDEN $2,005,000$2,086,000$1,896,000 3.9%5.7%354
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877 ONEROOF VALOCITYHOUSE VALUEINDEX
GREENLANE $2,032,000$2,163,000$2,083,000 6.1% 2.4%88
PAIHIA $814,000$827,000$711,000 1.6%14.5%65
HERNE BAY $3,904,000$4,140,000$3,740,000 5.7%4.4%71
MEADOWBANK $1,849,000$1,936,000$1,843,000 4.5%0.3%73
TAIPA $767,000$768,000$627,000 0.1%22.3%24
MORNINGSIDE $1,428,000$1,539,000$1,444,000 7.2% 1.1%68
KOHIMARAMA $2,417,000$2,578,000$2,382,000 6.2%1.5%70
CABLE BAY $860,000$866,000$716,000 0.7%20.1%60
KAIKOHE $385,000$390,000$336,000 1.3%14.6%66
Allsevenof theregion'sformerlocalgovernmentareas recordednegativegrowth overthequarter,withManukau andtheNorthShoretakingthebiggesthits;their averagepropertyvaluesfell5.5%and5.4% respectivelyoverthe quarter,fuelled byquietersalesactivityintheirhighervaluesuburbs.Thevaluefallsinthefour remainingAucklanddistrictswerebetween 2.6%and3.9%.
LOCATION PROPERTY VALUE
NORTHLAND $893,000$920,000$790,000 2.9%13.0%4208
RUATANGATAWEST $1,116,000$1,172,000$984,000 4.8%13.4%21
MOUNTALBERT $1,529,000$1,593,000$1,508,000 4.0%1.4%242
KAEO $834,000$843,000$668,000 1.1%24.9%42
RUSSELL $1,496,000$1,544,000$1,299,000 3.1%15.2%47
PARUA BAY $1,235,000$1,290,000$1,094,000 4.3%12.9%42
COOPERSBEACH $920,000$919,000$737,0000.1%24.8%28
WOODHILL $648,000$704,000$617,000 8.0%5.0%38 GLENINNES $1,300,000$1,430,000$1,322,000 9.1% 1.7%147 GLENDOWIE $2,544,000$2,707,000$2,487,000 6.0%2.3%115
Kaipara'saveragepropertyvaluewasdown2.4%overthequarter,with Te Kopuru leadingthe TA'sslumpwith avaluefallof8.1%.MangawhaiHeadsnarrowlyescaped thewintercoldspell,withitsaveragepropertyvaluedownonly0.7%overthequarter.
KAIPARA$983,000$1,007,000$863,000 2.4%13.9%657 BAYLYS BEACH $702,000$725,000$609,000 3.2%15.3%20 DARGAVILLE $563,000$587,000$515,000 4.1%9.3%112 KAIWAKA $1,036,000$1,070,000$881,000 3.2%17.6%69 MANGAWHAI $1,421,000$1,477,000$1,225,000 3.8%16.0%140 MANGAWHAIHEADS $1,492,000$1,502,000$1,305,000 0.7%14.3%108 MAUNGATUROTO $786,000$816,000$684,000 3.7%14.9%40 TE KOPURU $512,000$557,000$473,000 8.1%8.2%20 WHANGAREI $934,000$977,000$846,000 -4.4%10.4%2116 AVENUES $603,000$653,000$591,000 7.7%2.0%37 GLENBERVIE $1,354,000$1,411,000$1,170,000 4.0%15.7%23 HIKURANGI $667,000$694,000$600,000 3.9%11.2%40 HORAHORA $734,000$775,000$699,000 5.3%5.0%27 KAMO $842,000$864,000$752,000 2.5%12.0%274 KAURI $1,289,000$1,339,000$1,054,000 3.7%22.3%23 KENSINGTON $716,000$749,000$622,000 4.4%15.1%107 LANGS BEACH $2,394,000$2,422,000$2,068,000 1.2%15.8%29 MAUNGATAPERE $1,189,000$1,253,000$1,099,000 5.1%8.2%35 MAUNU $1,116,000$1,141,000$967,000 2.2%15.4%87 MORNINGSIDE $636,000$672,000$581,000 5.4%9.5%47 NGUNGURU $1,165,000$1,215,000$1,031,000 4.1%13.0%35 ONETREEPOINT $1,224,000$1,228,000$1,079,000 0.3%13.4%161 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
Northland'sstarperformersoverthe quarterwere Waipapa(up1.2%to$1.13m), Kaitaia(up2.9%to$468,000)andPukenui(up3.9%to$791,000).
Theslumpcanalsobeseeninthedrop-off insalesactivity.Settledsalesinthe 12monthstotheendofAugustnumbered29,475 -downfromthe34,694inthe12 monthstotheendofMarch.
GREATER AUCKLAND$1,452,000$1,518,000$1,419,000 4.3%2.3%29475 AUCKLANDCITY$1,647,000$1,711,000$1,632,000 -3.7%0.9%7188 AUCKLANDCENTRAL $622,000$635,000$651,000 2.0% 4.5%884 AVONDALE $1,107,000$1,141,000$1,156,000 3.0% 4.2%296 BLOCKHOUSE BAY $1,290,000$1,347,000$1,290,000 4.2%0.0%190 EDENTERRACE $863,000$900,000$878,000 4.1% 1.7%108 ELLERSLIE $1,420,000$1,461,000$1,474,000 2.8% 3.7%153 EPSOM $2,387,000$2,531,000$2,335,000 5.7%2.2%247 FREEMANS BAY $1,837,000$1,892,000$1,810,000 2.9%1.5%89
AVERAGEPROPERTY VALUEYEARON YEARCHANGE
MANGONUI $833,000$839,000$692,000 0.7%20.4%48
HILLSBOROUGH $1,454,000$1,541,000$1,441,000 5.6%0.9%89
WAIHEKEISLAND $3,600,000$3,869,000$3,245,000 7.0%10.9%31
TOTARA PARK $2,477,000$2,776,000$2,197,000 10.8%12.7%34
EASTERN BEACH $2,045,000$2,172,000$2,043,000 5.8%0.1%23
WATERVIEW $1,154,000$1,273,000$1,128,000 9.3%2.3%40
FRANKLIN $1,201,000$1,233,000$1,091,000 2.6%10.1%1348 BOMBAY $1,842,000$1,951,000$1,591,000 5.6%15.8%24 CLARKSBEACH $1,349,000$1,393,000$1,205,000 3.2%12.0%51
$1,287,000$1,367,000$1,311,000 5.9% 1.8%45
FLAT BUSH $1,484,000$1,524,000$1,427,000
GOODWOODHEIGHTS $1,205,000$1,310,000$1,168,000
MURRAYSBAY $1,858,000$1,996,000$1,893,000 6.9% 1.8%68
TOTARA HEIGHTS $1,126,000$1,219,000$1,121,000 7.6%0.4%33
UNSWORTHHEIGHTS $1,263,000$1,385,000$1,263,000
DEVONPORT $2,287,000$2,461,000$2,325,000 7.1% 1.6%109
MAIRANGI BAY $1,878,000$1,999,000$1,910,000 6.1% 1.7%100
BELMONT $1,728,000$1,814,000$1,635,000 4.7%5.7%49
HALFMOON BAY $1,773,000$1,831,000$1,664,000 3.2%6.6%105 HIGHLAND PARK $1,266,000$1,365,000$1,254,000 7.3%1.0%76 HILLPARK $1,023,000$1,109,000$1,033,000 7.8%
GLENFIELD $1,164,000$1,206,000$1,130,000 3.5%3.0%290
BAYVIEW $1,117,000$1,200,000$1,090,000 6.9%2.5%113
$1,678,000$1,768,000$1,638,000 5.1%2.4%103
DANNEMORA $1,740,000$1,876,000$1,785,000 7.2% 2.5%35
HOWICK $1,325,000$1,405,000$1,312,000 5.7%1.0%242 MANGERE $1,012,000$1,061,000$925,000 4.6%9.4%170 MANGEREBRIDGE $1,407,000$1,497,000$1,282,000 6.0%9.8%137 MANGEREEAST $986,000$1,044,000$925,000 5.6%6.6%255 MANUKAU $678,000$714,000$712,000 5.0% 4.8%89 MANUREWA $907,000$951,000$905,000 4.6%0.2%748 MANUREWA EAST $798,000$886,000$884,000 9.9% 9.7%112 MARAETAI $1,657,000$1,810,000$1,608,000 8.5%3.0%41 MELLONS BAY $2,262,000$2,457,000$2,256,000 7.9%0.3%47 NORTHPARK $1,546,000$1,665,000$1,563,000 7.1% 1.1%56 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
WEYMOUTH $891,000$945,000$870,000 5.7%2.4%211
FARMCOVE $1,886,000$2,057,000$1,841,000 8.3%2.4%28 4.9%6.3%70 2.6%4.0%819 7.2% 3.3%43 8.0%3.2%59 1.0%78
NARROW NECK $2,141,000$2,297,000$2,102,000 6.8%1.9%32
OTAHUHU $877,000$944,000$840,000 7.1%4.4%186
WAIOTAIKI BAY $1,681,000$1,853,000$1,665,000 9.3%1.0%30
$1,240,000$1,312,000$1,268,000 5.5% 2.2%52
REMUERA $2,987,000$3,018,000$2,809,000 1.0%6.3%433
FAIRVIEWHEIGHTS $1,706,000$1,783,000$1,704,000 4.3%0.1%47
LONG BAY $1,767,000$1,874,000$1,757,000 5.7%0.6%110
OTEHA $1,230,000$1,278,000$1,230,000 3.8%0.0%89
PARNELL $2,237,000$2,336,000$2,211,000 4.2%1.2%168
SURFDALE $1,573,000$1,676,000$1,392,000 6.1%13.0%48
ONEROA $2,382,000$2,546,000$2,168,000 6.4%9.9%80
ST HELIERS $2,523,000$2,656,000$2,462,000 5.0%2.5%244
PAPATOETOE $926,000$986,000$911,000 6.1%1.6%800
ORAKEI $2,637,000$2,689,000$2,516,000 1.9%4.8%80
THREEKINGS
POINTCHEVALIER $2,112,000$2,232,000$2,122,000 5.4% 0.5%144
GREENHITHE $1,877,000$2,012,000$1,826,000 6.7%2.8%122
POINTENGLAND
HILLCREST $1,365,000$1,426,000$1,376,000 4.3% 0.8%162
COCKLE BAY $1,738,000$1,879,000$1,689,000 7.5%2.9%87
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877 OneRoof.co.nz 29
SCHNAPPER ROCK $1,724,000$1,821,000$1,716,000 5.3%0.5%54
SUNNYHILLS $1,848,000$1,949,000$1,775,000 5.2%4.1%55
NORTHCOTEPOINT $1,813,000$1,957,000$1,820,000 7.4% 0.4%46
EAST TAMAKI $1,225,000$1,266,000$1,184,000 3.2%3.5%101
EAST TAMAKIHEIGHTS $1,885,000$2,032,000$1,855,000 7.2%1.6%64
HAURAKI $2,209,000$2,382,000$2,110,000 7.3%4.7%89
GOLFLANDS $1,396,000$1,505,000$1,444,000
PAKURANGAHEIGHTS $1,312,000$1,369,000$1,261,000 4.2%4.0%141
OSTEND $1,576,000$1,677,000$1,425,000 6.0%10.6%53
BEACHHAVEN $1,176,000$1,250,000$1,207,000 5.9% 2.6%223
PONSONBY $2,619,000$2,761,000$2,512,000 5.1%4.3%92
RANDWICK PARK $837,000$920,000$850,000 9.0% 1.5%98
WHITFORD $3,654,000$3,728,000$3,466,000 2.0%5.4%41 WIRI $754,000$817,000$773,000 7.7% 2.5%43
CLEVEDON $2,278,000$2,343,000$2,113,000 2.8%7.8%44
ONEHUNGA $1,266,000$1,270,000$1,289,000 0.3% 1.8%289
PAKURANGA $1,323,000$1,391,000$1,304,000 4.9%1.5%152
PALMBEACH $2,155,000$2,230,000$1,893,000 3.4%13.8%20
BAYSWATER $1,874,000$2,032,000$1,844,000 7.8%1.6%39
SANDRINGHAM $1,589,000$1,650,000$1,541,000 3.7%3.1%195
SUNNYNOOK $1,334,000$1,398,000$1,339,000 4.6% 0.4%77
NEWMARKET $989,000$1,005,000$1,020,000 1.6% 3.0%39
ONETREEHILL $1,504,000$1,578,000$1,486,000 4.7%1.2%69
PINEHILL $1,788,000$1,892,000$1,798,000 5.5% 0.6%57
OTARA $872,000$938,000$829,000 7.0%5.2%128
ALBANY $1,222,000$1,293,000$1,165,000 5.5%4.9%184
PAREMOREMO $2,027,000$2,226,000$1,929,000 8.9%5.1%28
WAIHEKEISLAND $2,106,000$2,249,000$1,900,000 6.4%10.8%292
THE GARDENS $1,411,000$1,512,000$1,351,000 6.7%4.4%48
ONETANGI $2,137,000$2,290,000$1,921,000 6.7%11.2%40
CASTOR BAY $2,046,000$2,225,000$2,092,000 8.0% 2.2%72
FORRESTHILL $1,506,000$1,593,000$1,562,000 5.5% 3.6%135
ROYALOAK
$1,595,000$1,659,000$1,509,000 3.9%5.7%65
BROWNS BAY $1,368,000$1,416,000$1,304,000 3.4%4.9%243
SAINTMARYS BAY $3,184,000$3,319,000$2,984,000 4.1%6.7%40
WESTMERE $2,743,000$2,955,000$2,655,000 7.2%3.3%67
GLENBROOK $1,343,000$1,423,000$1,221,000 5.6%10.0%72
CLOVER PARK $939,000$1,012,000$897,000 7.2%4.7%97
FAVONA $951,000$1,000,000$895,000
SHELLYPARK $1,693,000$1,852,000$1,658,000 8.6%2.1%32
CHATSWOOD $1,611,000$1,720,000$1,602,000 6.3%0.6%46
TOTARA
WATTLEDOWNS $1,170,000$1,235,000$1,088,000 5.3%7.5%139
CAMPBELLS BAY $2,452,000$2,642,000$2,512,000 7.2% 2.4%50
SOMERVILLE $1,622,000$1,736,000$1,613,000 6.6%0.6%50
NORTHCOTE $1,380,000$1,434,000$1,348,000 3.8%2.4%139
ROTHESAY BAY $1,693,000$1,868,000$1,798,000 9.4% 5.8%47
TAKAPUNA $2,392,000$2,529,000$2,337,000 5.4%2.4%168 TORBAY $1,358,000$1,412,000$1,350,000 3.8%0.6%281 VALE $1,129,000$1,191,000$1,118,000 5.2%1.0%100 8.8%0.0%72 $1,216,000$1,244,000$1,079,000 2.3%12.7%192
WAIAKE $1,692,000$1,873,000$1,743,000 9.7% 2.9%27 WINDSOR PARK $1,515,000$1,564,000$1,494,000 3.1%1.4%24 PAPAKURA $1,136,000$1,176,000$1,061,000 3.4%7.1%2154 CONIFERGROVE $1,131,000$1,227,000$1,092,000 7.8%3.6%87 DRURY $1,515,000$1,594,000$1,311,000 5.0%15.6%28 KARAKA $1,874,000$1,974,000$1,745,000 5.1%7.4%252 OPAHEKE $1,197,000$1,259,000$1,095,000 4.9%9.3%137 PAHUREHURE $1,109,000$1,199,000$1,068,000 7.5%3.8%88 PAPAKURA $944,000$963,000$865,000 2.0%9.1%961 REDHILL $924,000$989,000$826,000 6.6%11.9%66 ROSEHILL $1,027,000$1,099,000$930,000 6.6%10.4%89 TAKANINI $1,034,000$1,062,000$971,000 2.6%6.5%438 RODNEY$1,523,000$1,580,000$1,441,000 3.6%5.7%3285 ALGIES BAY $1,480,000$1,545,000$1,423,000 4.2%4.0%22 ARMY BAY $1,243,000$1,338,000$1,234,000 7.1%0.7%28 COATESVILLE $3,743,000$3,704,000$3,269,0001.1%14.5%51 DAIRYFLAT $2,485,000$2,555,000$2,349,000 2.7%5.8%71 GULFHARBOUR
PANMURE $1,153,000$1,225,000$1,151,000 5.9%0.2%112
NORTHSHORE $1,570,000$1,660,000$1,568,000 5.4%0.1%4237
NORTHCROSS $1,402,000$1,491,000$1,418,000 6.0% 1.1%54
SAINTJOHNS
BIRKDALE $1,050,000$1,101,000$1,065,000 4.6% 1.4%184
$1,734,000$1,785,000$1,686,000 2.9%2.8%84
WESLEY $1,267,000$1,369,000$1,284,000 7.5% 1.3%33
MILFORD $1,935,000$2,087,000$1,878,000 7.3%3.0%146
OMIHA $1,207,000$1,347,000$1,179,000 10.4%2.4%20
HUNUA 3.1%7.6%651 RAMARAMA $1,844,000$1,985,000$1,702,000 7.1%8.3%49 WAIUKU $1,013,000$1,030,000$904,000 1.7%12.1%274
$1,637,000$1,698,000$1,430,000 3.6%14.5%31 PAERATA $1,486,000$1,559,000$1,352,000 4.7%9.9%47 PATUMAHOE $1,403,000$1,473,000$1,249,000 4.8%12.3%34 POLLOK $1,183,000$1,161,000$1,006,0001.9%17.6%22 PUKEKOHE $1,025,000$1,058,000$953,000
MANUKAU (EAST ANDSOUTH) $1,307,000$1,383,000$1,265,000 5.5%3.3%6314 BEACHLANDS $1,722,000$1,812,000$1,636,000 5.0%5.3%152 BOTANYDOWNS $1,389,000$1,474,000$1,363,000 5.8%1.9%110 BUCKLANDSBEACH $1,860,000$1,966,000$1,766,000 5.4%5.3%169 CLENDONPARK $803,000$881,000$792,000 8.9%1.4%176
ALBANYHEIGHTS $1,488,000$1,554,000$1,422,000 4.2%4.6%111
BIRKENHEAD $1,445,000$1,508,000$1,419,000 4.2%1.8%189
STONEFIELDS
WHENUAPAI $1,421,000$1,552,000$1,392,000
QUEENWOOD $1,107,000$1,110,000$994,000 0.3%11.4%65
Waikato'sbestperformingsuburbinthreemonthstotheendofAugustwas Meremere,in Waikato.Itsaveragepropertyvaluejumped10.9%to$531,000 -again of$52,000.TheweakestwasNgatea,inHauraki,withitsaveragepropertyvalue down12.9%($110,000)overthequarter,althoughstillup12.6%yearonyear.
HOBSONVILLE $1,264,000$1,303,000$1,190,000 3.0%6.2%583
ORATIA $1,761,000$1,771,000$1,627,000 0.6%8.2%20
DINSDALE $770,000$801,000$737,000 3.9%4.5%201
FLAGSTAFF $1,230,000$1,227,000$1,138,0000.2%8.1%254
GRANDVIEWHEIGHTS $956,000$1,014,000$915,000 5.7%4.5%25
RIVERLEA $926,000$988,000$891,000 6.3%3.9%22
HUAPAI $1,404,000$1,470,000$1,306,000 4.5%7.5%74
MASSEY $1,108,000$1,128,000$1,083,000 1.8%2.3%538
TE ATATUPENINSULA $1,301,000$1,376,000$1,289,000 5.5%0.9%290
ROTOTUNA $1,073,000$1,092,000$1,012,000 1.7%6.0%69
SUNNYVALE $1,016,000$1,089,000$991,000 6.7%2.5%106
HATFIELDSBEACH
WELLSFORD $901,000$944,000$844,000 4.6%6.8%66
Hamilton'saveragepropertyvalueismorethan$60,000belowwhereitwasat thestartoftheyear,andonly$33,000aheadofSeptember2021levels.Thetrend linesuggestspropertyvaluesinthecitywillcomeunderfurtherpressure.Aquarter ofthecity's41suburbs recordedfewerthan20settledsalesinthelast12months andonlyone,Flagstaff,registeredvaluegrowthinthelastthreemonths -quitea turnaroundfromthe first quarteroftheyearwheneverysuburb recordedgrowth.
MAKARAU $1,321,000$1,387,000$1,235,000 4.8%7.0%27
WAINUI $1,652,000$1,769,000$1,635,000 6.6%1.0%179
RANUI $976,000$1,031,000$961,000 5.3%1.6%220
WESTHARBOUR $1,456,000$1,537,000$1,367,000 5.3%6.5%164 $1,078,000$1,137,000$1,074,000 5.2%0.4%75 8.4%2.1%159 $624,000$651,000$625,000 4.1% 0.2%43
FRANKTON $698,000$723,000$691,000 3.5%1.0%164
PUKETE $873,000$921,000$847,000 5.2%3.1%98
$875,000$900,000$841,000 2.8%4.0%27
$1,589,000$1,732,000$1,580,000 8.3%0.6%28
MURIWAI
KAIPARAFLATS $1,516,000$1,572,000$1,369,000 3.6%10.7%23
$1,192,000$1,245,000$1,119,000 4.3%6.5%97
TE ATATUSOUTH $1,099,000$1,135,000$1,100,000 3.2% 0.1%259
BEERESCOURT $1,071,000$1,071,000$971,0000.0%10.3%56
TINDALLSBEACH $1,704,000$1,887,000$1,671,000 9.7%2.0%20
PUHOI
KUMEU $1,758,000$1,876,000$1,695,000 6.3%3.7%181
KELSTON $1,032,000$1,105,000$1,001,000 6.6%3.1%70
WAITAKERE $1,640,000$1,682,000$1,430,000 2.5%14.7%33
$1,344,000$1,420,000$1,271,000 5.4%5.7%131
DEANWELL $672,000$727,000$681,000 7.6% 1.3%24
RIVERHEAD
WARKWORTH $1,312,000$1,329,000$1,198,000 1.3%9.5%212
FITZROY $845,000$874,000$801,000 3.3%5.5%41
GLENVIEW $809,000$845,000$786,000 4.3%2.9%137
HENDERSON $1,086,000$1,133,000$1,051,000 4.1%3.3%661
KAUKAPAKAPA $1,528,000$1,543,000$1,457,000 1.0%4.9%52
HAMILTONEAST $772,000$785,000$756,000 1.7%2.1%282
NEW LYNN $975,000$986,000$991,000 1.1% 1.6%374
OMAHA $2,753,000$2,812,000$2,506,000 2.1%9.9%29
FAIRFIELD $834,000$859,000$784,000 2.9%6.4%158
HILLCREST $828,000$881,000$825,000 6.0%0.4%134
MAEROA $777,000$793,000$741,000 2.0%4.9%56
WAITAKERE $1,169,000$1,216,000$1,138,000 3.9%2.7%4648
WAITOKI $2,169,000$2,231,000$2,080,000 2.8%4.3%24
WAIMAUKU $1,761,000$1,851,000$1,655,000 4.9%6.4%73
SILVERDALE
CHARTWELL $918,000$923,000$850,000 0.5%8.0%252
MELVILLE $696,000$731,000$676,000 4.8%3.0%119
ROTOTUNANORTH $1,111,000$1,170,000$1,110,000 5.0%0.1%153
HUNTINGTON $1,147,000$1,155,000$1,069,000 0.7%7.3%145
HAURAKI $792,000$880,000$640,000 10.0%23.8%413 KEREPEHI $594,000$630,000$446,000 5.7%33.2%20 NGATEA $741,000$851,000$658,000 12.9%12.6%39 PAEROA $624,000$664,000$527,000 6.0%18.4%97 WAIHI $781,000$841,000$637,000 7.1%22.6%165 MATAMATA PIAKO$881,000$878,000$739,0000.3%19.2%674 MATAMATA $889,000$875,000$771,0001.6%15.3%243 MORRINSVILLE $879,000$888,000$758,000 1.0%16.0%241 TEAROHA $774,000$770,000$604,0000.5%28.1%98 OTOROHANGA$670,000$756,000$664,000 11.4%0.9%148 KAWHIA $582,000$668,000$570,000 12.9%2.1%24 OTOROHANGA $642,000$718,000$620,000 10.6%3.5%93 SOUTH WAIKATO$546,000$564,000$489,000 3.2%11.7%498 PUTARURU $586,000$604,000$506,000 3.0%15.8%109 TIRAU $701,000$736,000$655,000 4.8%7.0%56 TOKOROA $463,000$478,000$379,000 3.1%22.2%301 TAUPO $962,000$1,001,000$859,000 3.9%12.0%1175 ACACIABAY $1,501,000$1,528,000$1,251,000 1.8%20.0%57 HILLTOP $967,000$1,008,000$858,000 4.1%12.7%67 KINLOCH $1,395,000$1,439,000$1,188,000 3.1%17.4%79 KURATAU $910,000$919,000$814,000 1.0%11.8%22 MANGAKINO $551,000$540,000$453,0002.0%21.6%45 MOTUOAPA $818,000$849,000$742,000 3.7%10.2%36 NUKUHAU $949,000$964,000$835,000 1.6%13.7%113 OMORI $845,000$853,000$743,000 0.9%13.7%22 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS WAIKATO'S AVERAGE propertyvalueslipped0.6%($6000)to$981,000inthelast threemonths,withstrongvaluegrowthin Waikato TAoffsettingthe10%-plusdrops inHaurakiandOtorohanga. Housevaluesinthe regionarestill9.7%($87,000)abovewheretheywereayear ago,and42%($293,000)abovewheretheywerejustbeforethehousingmarkettook WAIKATO $981,000 9.7% AVERAGEPROPERTY VALUEYEARON YEARCHANGE
HAMILTONLAKE $975,000$1,030,000$984,000 5.3% 0.9%48
STANMORE BAY $1,225,000$1,275,000$1,150,000 3.9%6.5%271
CHEDWORTH $989,000$1,017,000$913,000 2.8%8.3%26
STILLWATER $1,706,000$1,789,000$1,598,000 4.6%6.8%34
WHITIORA $714,000$720,000$661,000 0.8%8.0%39
$2,042,000$2,059,000$1,811,000 0.8%12.8%114
GLENEDEN $1,013,000$1,054,000$989,000 3.9%2.4%412
VALOCITYHOUSE VALUEINDEX
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877
ONEROOF
GLENDENE $1,084,000$1,168,000$1,044,000 7.2%3.8%92
OKURABUSH $2,757,000$3,033,000$2,861,000 9.1% 3.6%21
WAIKATO$981,000$987,000$894,000 0.6%9.7%10689 HAMILTON$879,000$897,000$846,000 2.0%3.9%3398 BADER
GREEN BAY $1,353,000$1,437,000$1,292,000 5.8%4.7%60
HAMILTONCENTRAL $816,000$831,000$782,000 1.8%4.3%59
SILVERDALE $784,000$847,000$758,000 7.4%3.4%31
POINTWELLS
SNELLSBEACH
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SAINTANDREWS $902,000$941,000$861,000 4.1%4.8%140
OREWA $1,364,000$1,401,000$1,271,000 2.6%7.3%389
$1,719,000$1,733,000$1,520,000 0.8%13.1%20
PARAKAI
LEIGH $1,620,000$1,645,000$1,360,000 1.5%19.1%20
REDBEACH
TITIRANGI $1,376,000$1,426,000$1,347,000 3.5%2.2%254
$1,507,000$1,589,000$1,428,000 5.2%5.5%202
MATAKANA $2,071,000$2,150,000$1,796,000 3.7%15.3%44
WESTGATE
NAWTON $706,000$735,000$689,000 3.9%2.5%233
HELENSVILLE $1,305,000$1,340,000$1,233,000 2.6%5.8%121
Deanwell,inHamilton'ssouth-west,wasthecity'sbiggestwinterloser,withits averagepropertyvaluedown7.6%($55,000)to$672,000overthequarteranddown 1.3%yearonyear.
MANLY $1,356,000$1,444,000$1,338,000 6.1%1.3%121
$2,344,000$2,435,000$2,058,000 3.7%13.9%34
$1,194,000$1,307,000$1,184,000 8.6%0.8%28
CLAUDELANDS $820,000$841,000$777,000 2.5%5.5%63
ENDERLEY $647,000$670,000$631,000 3.4%2.5%79
SWANSON $1,306,000$1,375,000$1,220,000 5.0%7.0%110
FORESTLAKE $799,000$818,000$745,000 2.3%7.2%67
LAINGHOLM $1,152,000$1,222,000$1,120,000 5.7%2.9%46
PIHA $1,511,000$1,574,000$1,318,000 4.0%14.6%20
HENDERSON VALLEY $1,494,000$1,612,000$1,351,000 7.3%10.6%44
off inSeptember2020.Theslowrateofdeclinemeansthosepost-Covidgainsaresafe fornow,butweaknessesareevidentinthe region'sdiversehousingmarket -someof whichcouldbeseasonallydriven.
FAIRVIEWDOWNS $771,000$797,000$745,000 3.3%3.5%44
TAUHARA $631,000$649,000$577,000 2.8%9.4%31
MEREMERE
$531,000$479,000$530,00010.9%0.2%29
PAUANUI $1,627,000$1,587,000$1,367,0002.5%19.0%106 TAIRUA $1,266,000$1,241,000$1,080,0002.0%17.2%72 THAMES $800,000$813,000$721,000 1.6%11.0%112 WHANGAMATA $1,526,000$1,549,000$1,370,000 1.5%11.4%192 WHITIANGA $1,172,000$1,151,000$991,0001.8%18.3%259 WAIKATO$1,178,000$1,098,000$1,088,0007.3%8.3%1654 BUCKLAND $1,494,000$1,408,000$1,369,0006.1%9.1%34
POKENO $1,177,000$1,083,000$1,046,0008.7%12.5%193
WHAREWAKA $1,414,000$1,480,000$1,255,000 4.5%12.7%106
$2,235,000$2,049,000$1,965,0009.1%13.7%81
TAUPO $796,000$796,000$709,0000.0%12.3%211
TURANGI $509,000$529,000$468,000 3.8%8.8%104
WHATAWHATA $1,349,000$1,271,000$1,244,0006.1%8.4%33
RICHMONDHEIGHTS $836,000$876,000$763,000 4.6%9.6%61
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877
RAGLAN $1,286,000$1,207,000$1,176,0006.5%9.4%157
TWOMILEBAY $971,000$1,028,000$906,000 5.5%7.2%29
MATARANGI $1,197,000$1,229,000$1,085,000
OpotikiwastheonlyTAtoseevaluegrowthoverthequarter -amodest0.3%,but stillgrowthina slowingmarket.ThebiggestfalleroverthequarterwasTauranga, withitsaveragepropertyvaluedropping5.6%($69,000)to $1.172m.Noneofthecity's suburbs recordedvaluegrowthovertheperiod. Poikesufferedtheworstdrop,both inthecityand Waikatoas awhole.Itsaveragepropertyvaluefell9.1%($72,000) to $723,000.The leastaffected TaurangasuburbwasPyesPa,whichdroppedonly1.9% overthesameperiod.
BAYOF PLENTY
OneRoof.co.nz 31
PORTWAIKATO $667,000$633,000$681,0005.4% 2.1%22
THEDECLINE inBayofPlenty'saveragepropertyvalueacceleratedoverwinter.In thelastthreemonthsitdropped4.4%($48,000)to$1.04m,althoughitisstillup7.3% ($71,000)yearonyear,whichsuggestsnewhomeownerswillbeabletoholdonto valuegainsforlonger.
FentonParkinRotoruaenjoyedthe region'sbiggestvaluelift.Itsaverageproperty valuejumped3.5%to$604,000.However,thedownturndidpull Lynmoreoutof Rotorua's$1mclub,withtheprizedsuburb'saveragepropertyvaluedropping1.9% to $991,000.
AVERAGEPROPERTY VALUEYEARON YEARCHANGE
RANGATIRAPARK $1,083,000$1,110,000$944,000 2.4%14.7%45
TE KOWHAI $1,448,000$1,353,000$1,332,0007.0%8.7%33
TAUPIRI $1,208,000$1,133,000$1,103,0006.6%9.5%41
THAMES COROMANDEL$1,290,000$1,280,000$1,151,0000.8%12.1%1137 2.6%14.4%20 2.6%10.3%76
TAMAHERE
PUKEKAWA $1,239,000$1,117,000$1,159,00010.9%6.9%24
WAIPA$1,103,000$1,138,000$989,000 3.1%11.5%1409 CAMBRIDGE $1,273,000$1,284,000$1,156,000 0.9%10.1%326 KARAPIRO $1,611,000$1,668,000$1,335,000 3.4%20.7%24 KIHIKIHI $831,000$856,000$726,000 2.9%14.5%126 LEAMINGTON $1,036,000$1,044,000$920,000 0.8%12.6%259 NGAHINAPOURI $1,527,000$1,543,000$1,260,000 1.0%21.2%55 OHAUPO $1,399,000$1,428,000$1,189,000 2.0%17.7%45 PIRONGIA $1,106,000$1,166,000$993,000 5.1%11.4%41 TE AWAMUTU $856,000$872,000$747,000 1.8%14.6%412 TEMIRO $1,453,000$1,510,000$1,228,000 3.8%18.3%24 WAITOMO $462,000$480,000$374,000 3.8%23.5%183 TE KUITI $464,000$491,000$385,000 5.5%20.5%119 BAYOFPLENTY$1,040,000$1,088,000$969,000 -4.4%7.3%6076 KAWERAU $441,000$443,000$400,000 0.5%10.3%140 OPOTIKI $617,000$615,000$607,0000.3%1.6%101 OPOTIKI $467,000$467,000$466,0000.0%0.2%59 WAIOTAHE $989,000$1,010,000$976,000 2.1%1.3%21 ROTORUA $792,000$799,000$744,000 0.9%6.5%1120 FAIRYSPRINGS $617,000$611,000$582,0001.0%6.0%37 FENTON PARK $604,000$584,000$572,0003.4%5.6%21 FORDLANDS $407,000$412,000$392,000 1.2%3.8%24 GLENHOLME $706,000$719,000$684,000 1.8%3.2%95 HAMURANA $1,362,000$1,338,000$1,188,0001.8%14.6%27 HILLCREST $653,000$674,000$628,000 3.1%4.0%27 KAWAHAPOINT $834,000$848,000$795,000 1.7%4.9%46 KOUTU $545,000$560,000$538,000 2.7%1.3%21 LYNMORE $991,000$1,010,000$926,000 1.9%7.0%67 MAMAKU $604,000$591,000$558,0002.2%8.2%27 MANGAKAKAHI $574,000$570,000$549,0000.7%4.6%55 NGONGOTAHA $756,000$755,000$694,0000.1%8.9%85 OWHATA $718,000$731,000$671,000 1.8%7.0%106 POMARE $776,000$808,000$745,000 4.0%4.2%25 PUKEHANGI $675,000$679,000$647,000 0.6%4.3%82 SPRINGFIELD $847,000$871,000$818,000 2.8%3.5%64 SUNNYBROOK $764,000$789,000$727,000 3.2%5.1%34 VICTORIA $575,000$574,000$562,0000.2%2.3%39 WESTERNHEIGHTS $557,000$565,000$544,000 1.4%2.4%57 TAURANGA$1,172,000$1,241,000$1,112,000 5.6%5.4%3161 BELLEVUE $853,000$928,000$808,000 8.1%5.6%74 BETHLEHEM $1,241,000$1,313,000$1,127,000 5.5%10.1%164 BROOKFIELD $860,000$925,000$814,000 7.0%5.7%130 GATE PA $731,000$768,000$690,000 4.8%5.9%133 GREERTON $788,000$842,000$746,000 6.4%5.6%70 HAIRINI $847,000$919,000$805,000 7.8%5.2%45 JUDEA $797,000$857,000$766,000 7.0%4.0%64 MATUA $1,291,000$1,383,000$1,207,000 6.7%7.0%91 MAUNGATAPU $983,000$1,050,000$935,000 6.4%5.1%60 MOUNTMAUNGANUI $1,604,000$1,678,000$1,480,000 4.4%8.4%462 OHAUITI $1,194,000$1,255,000$1,112,000 4.9%7.4%136 OTUMOETAI $1,144,000$1,194,000$1,081,000 4.2%5.8%149 PAPAMOA $1,023,000$1,108,000$947,000 7.7%8.0%118 PAPAMOABEACH $1,199,000$1,256,000$1,129,000 4.5%6.2%666 PARKVALE $709,000$768,000$676,000 7.7%4.9%63HousesinHamilton.Thecity'saverageproperty valuedropped2% in thelastthreemonths. Photo/ FionaGoodall LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
NGARUAWAHIA $822,000$796,000$774,0003.3%6.2%206
MANGATAWHIRI $1,438,000$1,308,000$1,292,0009.9%11.3%24
TE KAUWHATA $912,000$851,000$835,0007.2%9.2%123
$1,040,000 7.3%
COOKSBEACH $1,470,000$1,498,000$1,349,000 1.9%9.0%29 COROMANDEL $933,000$917,000$831,0001.7%12.3%40 HAHEI $1,761,000$1,808,000$1,540,000
TUAKAU $912,000$888,000$833,0002.7%9.5%173
WAIRAKEI $1,168,000$1,183,000$967,000 1.3%20.8%27
HUNTLY $595,000$570,000$554,0004.4%7.4%152
MATANGI $1,861,000$1,789,000$1,674,0004.0%11.2%39
WAIPAHIHI $1,130,000$1,188,000$1,038,000 4.9%8.9%36
The7.2%fallin Wairoa'saveragepropertyvalueoverthequarteris abrutal turnaroundforthe TA,whichhadenjoyed a5.3%valuesurgeinthethreemonthsto theendofMay -moreevidenceoftheinstabilitythatgoeswith alow-salesmarkets.
ESKDALE
$1,787,000$1,882,000$1,562,000 5.0%14.4%31
PARKVALE $730,000$775,000$729,000 5.8%0.1%79
AHURIRI $1,154,000$1,258,000$1,093,000 8.3%5.6%35
KATIKATI $880,000$889,000$770,000 1.0%14.3%154
WELCOMEBAY $993,000$1,028,000$890,000 3.4%11.6%211
MAREWA $629,000$705,000$669,000 10.8% 6.0%78
32 OneRoof.co.nz
NAPIER SOUTH $762,000$807,000$756,000 5.6%0.8%101
WAIROA$463,000$499,000$388,000 7.2%19.3%122 MAHIA $841,000$910,000$726,000 7.6%15.8%25 WAIROA $339,000$360,000$272,000 5.8%24.6%72 MANAWATU WHANGANUI$659,000$687,000$646,000 4.1%2.0%4965 HOROWHENUA $685,000$724,000$671,000 -5.4%2.1%840 FOXTON $556,000$594,000$543,000 6.4%2.4%79 FOXTONBEACH $682,000$732,000$654,000 6.8%4.3%69 LEVIN $663,000$700,000$645,000 5.3%2.8%462 OHAU $1,072,000$1,130,000$969,000 5.1%10.6%44 SHANNON $554,000$591,000$540,000 6.3%2.6%50 TOKOMARU $763,000$799,000$725,000 4.5%5.2%20 WAITAREREBEACH $728,000$797,000$706,000 8.7%3.1%43 MANAWATU $732,000$745,000$712,000 1.7%2.8%628 FEILDING $709,000$723,000$695,000 1.9%2.0%428 HALCOMBE $836,000$849,000$755,000 1.5%10.7%35 HIMATANGIBEACH $555,000$576,000$538,000 3.6%3.2%24 RONGOTEA $736,000$750,000$694,000 1.9%6.1%32 PALMERSTONNORTH$747,000$792,000$750,000 5.7% 0.4%1587 AOKAUTERE $1,238,000$1,275,000$1,119,000 2.9%10.6%25 ASHHURST $764,000$818,000$763,000 6.6%0.1%73 AWAPUNI $698,000$725,000$697,000 3.7%0.1%156 BUNNYTHORPE $978,000$996,000$896,000 1.8%9.2%37 CLOVERLEA $611,000$677,000$641,000 9.7% 4.7%31 FITZHERBERT $1,037,000$1,088,000$1,033,000 4.7%0.4%96 HIGHBURY $593,000$624,000$586,000 5.0%1.2%107 HOKOWHITU $892,000$930,000$868,000 4.1%2.8%176 KELVINGROVE $880,000$918,000$873,000 4.1%0.8%167 MILSON $696,000$736,000$690,000 5.4%0.9%131 PALMERSTONNORTH $706,000$740,000$691,000 4.6%2.2%128 GISBORNE $706,000$729,000$672,000 3.2%5.1%665 ELGIN $525,000$538,000$495,000 2.4%6.1%31 GISBORNE $586,000$602,000$573,000 2.7%2.3%35 INNER KAITI $734,000$785,000$731,000 6.5%0.4%34 KAITI $530,000$540,000$486,000 1.9%9.1%38 LYTTONWEST $915,000$968,000$909,000 5.5%0.7%31 MAKAURI $1,500,000$1,478,000$1,341,0001.5%11.9%21 MANGAPAPA $676,000$699,000$640,000 3.3%5.6%93 OUTER KAITI $525,000$519,000$471,0001.2%11.5%52 RIVERDALE $817,000$854,000$807,000 4.3%1.2%25 TEHAPARA $613,000$640,000$587,000 4.2%4.4%101 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
ONEROOF VALOCITYHOUSE VALUEINDEX
TAHAWAI
AONGATETE $1,418,000$1,493,000$1,223,000 5.0%15.9%31
OMANAWA
PAENGAROA $1,154,000$1,181,000$1,001,000 2.3%15.3%34
MARAENUI $542,000$605,000$554,000 10.4% 2.2%53
WESTERNBAYOFPLENTY$1,282,000$1,337,000$1,134,000 4.1%13.1%1008
ONEKAWA $660,000$714,000$682,000 7.6% 3.2%105
OMOKOROA
TE AWA $901,000$958,000$876,000 5.9%2.9%24
$1,694,000$1,771,000$1,471,000 4.3%15.2%27
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877
TARADALE $934,000$977,000$920,000 4.4%1.5%230
$1,691,000$1,790,000$1,499,000
MINDEN
BAYVIEW $1,160,000$1,228,000$1,103,000 5.5%5.2%36
HASTINGS $669,000 $700,000 $642,000 4.4% 4.2% 69
ATHENREE $1,135,000$1,201,000$1,033,000 5.5%9.9%34
OROPI
WESTSHORE $1,194,000$1,230,000$1,168,000 2.9%2.2%31
$1,199,000$1,248,000$1,086,000 3.9%10.4%207
WHAKATANE $807,000$824,000$749,000 2.1%7.7%546 COASTLANDS $1,034,000$1,059,000$974,000 2.4%6.2%36 EDGECUMBE $669,000$659,000$621,0001.5%7.7%42 MATATA $878,000$891,000$812,000 1.5%8.1%31 OHOPE $1,231,000$1,335,000$1,209,000 7.8%1.8%95 WHAKATANE $729,000$726,000$664,0000.4%9.8%247 WAINUI $1,509,000$1,607,000$1,476,000 6.1%2.2%23 WHATAUPOKO $895,000$934,000$867,000 4.2%3.2%74 HAWKE'SBAY$869,000$917,000$836,000 -5.2%3.9%2903 CENTRALHAWKE'SBAY$720,000$756,000$621,000 4.8%15.9%371 OTANE $846,000$894,000$740,000 5.4%14.3%52 TAKAPAU $532,000$532,000$423,0000.0%25.8%20 WAIPAWA $706,000$725,000$601,000 2.6%17.5%86 WAIPUKURAU $699,000$729,000$592,000 4.1%18.1%138
TEPUNA $2,019,000$2,123,000$1,756,000 4.9%15.0%23
$1,385,000$1,426,000$1,198,000 2.9%15.6%34
Gisborne,Hawke'sBay,Manawatu-Whanganuiand Taranakiallsuffereddropsintheir averagepropertyvalueoverthequarter,withHawke'sBaysufferingthesteepestdecline. Itsaveragepropertyvaluefell5.2%($48,000)to$869,000onthebackofweakmarket conditionsintheregion'stwobiggestcentres,NapierandHastings.Salesvolumesare downintheregion,puttingdownwardspressureonprices.All28NapierandHastings suburbsthatrecorded20ormoresettledsalesinthelast12monthsareinaworse positionnowthantheywereatthestartoftheyear,andpropertyvaluesinsevenare downbyasmuchas6%yearonyear.
PIRIMAI $694,000$761,000$712,000 8.8% 2.5%70
TAURANGA $1,122,000$1,194,000$1,051,000 6.0%6.8%53
PORAITI $1,379,000$1,440,000$1,271,000 4.2%8.5%54
WAIHIBEACH $1,557,000$1,608,000$1,331,000 3.2%17.0%62
RAUREKA $685,000$737,000$688,000 7.1% 0.4%67
PUKEHINA $1,314,000$1,374,000$1,099,000 4.4%19.6%46
$1,547,000$1,617,000$1,350,000 4.3%14.6%34
GREENMEADOWS $905,000$975,000$879,000 7.2%3.0%125
Valuedropsofmorethan5%inHorowhenuaandPalmerstonNorthdragged Manawatu-Whanganui'soverallaveragepropertyvaluedown4.1%($28,000)overthe quarterto$659,000.OnlyRuapehusawvaluegrowth,butagain,lowsalescouldbe maskinggreaterweaknessesin thatmarket.
CENTRAL NORTH ISLAND
PYESPA $1,218,000$1,242,000$1,154,000 1.9%5.5%316
FLAXMERE
POIKE
AKINA $679,000$727,000$672,000 6.6%1.0%81 CLIVE
HAVELOCKNORTH $1,334,000$1,381,000$1,222,000 3.4%9.2%288
GISBORNE,HAWKE'SBAY,MANAWATU-WHANGANUIANDTARANAKI
Taranakifinallyjoinedthe restoftheNorthIslandinnegativegrowthterritory,with itsaveragepropertydown1%($7000)over thequarter.NewPlymouthhadthegentlest fall,withitsaveragepropertyvaluedown0.7%($6000) to $798,000.
$723,000$795,000$706,000 9.1%2.4%28
TEPUKE $896,000$923,000$788,000 2.9%13.7%183
TAURANGASOUTH
MAYFAIR $664,000$710,000$655,000 6.5%1.4%80
BLUFFHILL $1,151,000$1,236,000$1,105,000 6.9%4.2%53
TAMATEA $692,000$748,000$705,000 7.5% 1.8%90
$1,027,000$1,071,000$919,000 4.1%11.8%112
MAHORA $775,000$841,000$766,000 7.8%1.2%75
HASTINGS$942,000$988,000$903,000 4.7%4.3%1237 $978,000$1,059,000$924,000 7.6%5.8%38 $1,393,000$1,525,000$1,321,000 8.7%5.5%23 $497,000$529,000$491,000 6.0%1.2%126
WHAKAMARAMA 5.5%12.8%47
FRIMLEY $963,000$1,030,000$906,000 6.5%6.3%76
SAINTLEONARDS $667,000$732,000$682,000 8.9% 2.2%45
NAPIER $878,000$933,000$872,000 5.9%0.7%1173
AWATOTO $1,042,000$1,091,000$961,000 4.5%8.4%33
HOSPITALHILL $1,126,000$1,195,000$1,046,000 5.8%7.6%44
7.0%52 EPUNI $904,000$1,017,000$997,000 11.1% 9.3%41 FAIRFIELD $855,000$1,002,000$973,000 14.7% 12.1%44 HUTTCENTRAL $1,235,000$1,349,000$1,282,000 8.5% 3.7%43 KELSON $914,000$1,024,000$999,000 10.7% 8.5%43 MAUNGARAKI $975,000$1,140,000$1,060,000 14.5% 8.0%41 NAENAE $712,000$794,000$779,000 10.3% 8.6%110 NORMANDALE $1,004,000$1,100,000$1,064,000 8.7% 5.6%22 PETONE $982,000$1,056,000$1,047,000 7.0% 6.2%124 STOKES VALLEY $725,000$801,000$784,000 9.5% 7.5%157 TAITA $702,000$780,000$776,000 10.0% 9.5%88 WAINUIOMATA $719,000$777,000$777,000 7.5% 7.5%337 WAIWHETU $854,000$966,000$952,000 11.6% 10.3%73 WATERLOO $960,000$1,097,000$1,060,000 12.5% 9.4%67 WOBURN $1,345,000$1,472,000$1,419,000 8.6% 5.2%46 MASTERTON $768,000$789,000$726,000 2.7%5.8%637 KURIPUNI $632,000$654,000$609,000 3.4%3.8%57 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
9.4% 7.0%72 BELMONT $1,042,000$1,164,000$1,096,000
FRANKLEIGH PARK $744,000$747,000$657,000 0.4%13.2%57 AVON $804,000$802,000$713,0000.2%12.8%22
HURDON $827,000$833,000$737,000 0.7%12.2%20
LOWER VOGELTOWN $748,000$759,000$667,000 1.4%12.1%41
LYNMOUTH $703,000$734,000$643,000 4.2%9.3%26 MARFELL $477,000$478,000$425,000 0.2%12.2%45
GLEN
HURWORTH $1,220,000$1,197,000$1,034,0001.9%18.0%29
NEWPLYMOUTH $887,000$935,000$798,000 5.1%11.2%100 OAKURA $1,315,000$1,363,000$1,164,000 3.5%13.0%23
THESLUMP hashitGreater Wellingtonhard.Notonlydidtheregionsufferthe country'sbiggest valuedropoverthelastthree months,butGreater Wellingtonproperty valuesarenow5.9%($62,000) belowwheretheywereinSeptember2021, with therapid gainsmadeattheendoflastyearand startofthisyearallgone.
Thecapitalsufferedthe region'ssteepestdecline,withtheaveragepropertyvaluein thecityfalling 11.7%($151,000)inthelastthreemonthsto$1.137m.Alsofallinghard overthequarterwereUpperHutt(-9%to$874,000);LowerHutt(-8.5%to$888,000) andPorirua(-8.3%to$947,000).Propertyvaluesinallfour TAsweredownyearon yearbyasmuchas 8%, whichwillprovidemoreaffordableopportunitiestofirst-home buyersandinvestorsinthe region,butalsoleavemanyhomeownerswhoboughtat theheightofthemarketatriskofnegativeequity.
Shrinkingsalesvolumesarealso acauseforconcern,withthenumberofsettled salesinthe regionfallingfrom9083in the12monthstothe endofMarchto8215in the12monthstothe endofAugust.Theturnaroundinthecapital'sfortuneshasbeen severe.In thethreemonthstoMarch,justthreesuburbs recordeddeclinesintheir averagepropertyvalueandeverysuburbwasupyearonyear.Now,nosuburbis recordingquarterlygrowth,andhousepricesin47outofthecapital's56suburbsare lowerthantheywereayearago,withthepricedropsrangingfromaslittleas $6000 inKhandallah to asmuchas$228,000inOrientalBay.Somesuburbsarelooking particularlyvulnerable:propertyvaluesinPipitea, WellingtonCentral,Mount Victoria, TeAro,OrientalBayandMountCookarelessthan20%aheadofwheretheywerein September 2020.Thecrunchhas reducedPipitea'stwo-yearvaluegaintojust$26,000.
SPOTSWOOD $588,000$580,000$528,0001.4%11.4%43 STRANDON $1,013,000$1,010,000$903,0000.3%12.2%52 UPPER VOGELTOWN $710,000$720,000$642,000 1.4%10.6%28 VOGELTOWN $655,000$667,000$599,000 1.8%9.3%45 WAITARA $514,000$508,000$456,0001.2%12.7%108 WAIWHAKAIHO $1,154,000$1,151,000$996,0000.3%15.9%24 WELBOURN $723,000$756,000$681,000 4.4%6.2%35 WESTOWN $665,000$663,000$603,0000.3%10.3%121 WHALERS GATE $799,000$818,000$701,000 2.3%14.0%54 SOUTH TARANAKI $515,000$525,000$441,000 1.9%16.8%588 ELTHAM $446,000$458,000$392,000 2.6%13.8%36 HAWERA $569,000$568,000$488,0000.2%16.6%301 MANAIA $399,000$403,000$320,000 1.0%24.7%27 NORMANBY $531,000$559,000$451,000 5.0%17.7%27 OPUNAKE $507,000$525,000$442,000 3.4%14.7%59 PATEA $332,000$348,000$258,000 4.6%28.7%29 WAVERLEY $444,000$440,000$349,0000.9%27.2%35 STRATFORD $574,000$584,000$517,000 1.7%11.0%223 STRATFORD $548,000$555,000$489,000 1.3%12.1%170 GREATERWELLINGTON$992,000$1,091,000$1,054,000 9.1% 5.9%8215 CARTERTON $850,000$877,000$803,000 3.1%5.9%252 CARTERTON $726,000$769,000$704,000 5.6%3.1%168 KAPITICOAST $1,003,000$1,039,000$996,000 3.5%0.7%1121 HAUTERE $1,509,000$1,536,000$1,372,000 1.8%10.0%21 OTAKI $815,000$855,000$784,000 4.7%4.0%136 OTAKIBEACH $729,000$776,000$723,000 6.1%0.8%63 PAEKAKARIKI $1,092,000$1,124,000$1,089,000 2.8%0.3%24 PARAPARAUMU $904,000$948,000$911,000 4.6% 0.8%167 PARAPARAUMUBEACH $991,000$1,031,000$967,000 3.9%2.5%179 RAUMATIBEACH $1,002,000$1,059,000$993,000 5.4%0.9%82 RAUMATI SOUTH $994,000$1,069,000$1,012,000 7.0% 1.8%79 TEHOROBEACH $930,000$978,000$914,000 4.9%1.8%21 WAIKANAE
GREATER WELLINGTON
$992,000 5.9%
INGLEWOOD $677,000$657,000$592,0003.0%14.4%105
HIGHLANDS PARK $964,000$984,000$850,000 2.0%13.4%42
4.9%48 BOULCOTT $977,000$1,106,000$1,111,000
AVERAGEPROPERTY VALUEYEARON YEARCHANGE
OneRoof.co.nz 33
MERRILANDS $822,000$830,000$732,000 1.0%12.3%66 MOTUROA $797,000$779,000$684,0002.3%16.5%52
LOWERHUTT$888,000$970,000$975,000 8.5% 8.9%1578 ALICETOWN $918,000$1,014,000$1,026,000 9.5% 10.5%35 AVALON $832,000$918,000$895,000 10.5% 11.7% 12.1%36 12.3%
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877 ROSLYN $612,000$661,000$616,000 7.4% 0.6%107 TAKARO $617,000$649,000$619,000 4.9% 0.3%108 TERRACEEND $706,000$758,000$707,000 6.9% 0.1%102 WESTEND $671,000$723,000$681,000 7.2% 1.5%80 WESTBROOK $624,000$675,000$627,000 7.6% 0.5%41 RANGITIKEI $554,000$564,000$508,000 1.8%9.1%293 BULLS $606,000$631,000$562,000 4.0%7.8%49 MARTON $603,000$615,000$528,000 2.0%14.2%154 TAIHAPE $414,000$415,000$391,000 0.2%5.9%45 RUAPEHU $462,000$458,000$425,0000.9%8.7%287 OHAKUNE $571,000$583,000$531,000 2.1%7.5%94 RAETIHI $414,000$405,000$363,0002.2%14.0%25 TAUMARUNUI $375,000$378,000$352,000 0.8%6.5%65 TARARUA $528,000$545,000$505,000 -3.1%4.6%435 DANNEVIRKE $525,000$540,000$483,000 2.8%8.7%164 EKETAHUNA $492,000$505,000$453,000 2.6%8.6%33 PAHIATUA $544,000$564,000$526,000 3.5%3.4%105 WOODVILLE $489,000$497,000$472,000 1.6%3.6%72 WHANGANUI $578,000$604,000$563,000 4.3%2.7%895 ARAMOHO $512,000$539,000$475,000 5.0%7.8%83 CASTLECLIFF $447,000$482,000$427,000 7.3%4.7%121 DURIEHILL $643,000$675,000$626,000 4.7%2.7%34 GONVILLE $449,000$487,000$448,000 7.8%0.2%121 OTAMATEA $931,000$984,000$892,000 5.4%4.4%25 SAINTJOHNSHILL $726,000$764,000$713,000 5.0%1.8%28 SPRINGVALE $632,000$653,000$601,000 3.2%5.2%90 TAWHERO $557,000$591,000$556,000 5.8%0.2%58 WESTMERE $1,078,000$1,102,000$986,000 2.2%9.3%21 WHANGANUI $421,000$450,000$424,000 6.4% 0.7%95 WHANGANUI EAST $484,000$505,000$482,000 4.2%0.4%119 TARANAKI $723,000$730,000$642,000 1.0%12.6%2411 NEWPLYMOUTH $798,000$804,000$714,000 0.7%11.8%1600 BELLBLOCK $781,000$786,000$672,000 0.6%16.2%132 BLAGDON $600,000$621,000$553,000 3.4%8.5%32 FERNDALE $822,000$823,000$726,000 0.1%13.2%21 FITZROY $958,000$967,000$873,000 0.9%9.7%38
OKATO $701,000$673,000$602,0004.2%16.4%33 $1,049,000$1,085,000$1,018,000 3.3%3.0%218 WAIKANAEBEACH $1,083,000$1,153,000$1,118,000 6.1% 3.1%78
EASTBOURNE $1,240,000$1,414,000$1,334,000
STOKE $801,000$823,000$755,000 2.7%6.1%306
PAPAKOWHAI $980,000$1,116,000$1,080,000 12.2% 9.3%37
SPRINGLANDS $870,000$893,000$805,000 2.6%8.1%139
LYALLBAY $1,118,000$1,291,000$1,179,000 13.4% 5.2%43
AOTEA $1,357,000$1,465,000$1,381,000 7.4% 1.7%92
MONACO $722,000$785,000$713,000 8.0%1.3%23
PICTON $676,000$688,000$642,000 1.7%5.3%89
SILVERSTREAM $1,004,000$1,086,000$1,034,000 7.6% 2.9%60
CANNONSCREEK $603,000$698,000$642,000 13.6% 6.1%31
WASHINGTONVALLEY $645,000$702,000$653,000 8.1% 1.2%44
$874,000$960,000$948,000 9.0% 7.8%747
RIVERSDALE $584,000$599,000$587,000 2.5% 0.5%30
EBDENTOWN $756,000$848,000$844,000 10.8% 10.4%54
TAHUNANUI $749,000$789,000$682,000 5.1%9.8%88
1.8%11.0%28 MAPUA $1,169,000$1,187,000$1,056,000 1.5%10.7%36 MOTUEKA $800,000$815,000$753,000 1.8%6.2%141 REDWOOD VALLEY $1,673,000$1,641,000$1,454,0002.0%15.1%30 RICHMOND $910,000$939,000$849,000 3.1%7.2%446 RUBYBAY $1,566,000$1,561,000$1,402,0000.3%11.7%26 TAKAKA $711,000$746,000$678,000 4.7%4.9%34 UPPERMOUTERE $1,351,000$1,346,000$1,196,0000.4%13.0%32 WAKEFIELD $970,000$990,000$878,000 2.0%10.5%66 WESTCOAST $403,000$393,000$355,0002.5%13.5%1107 BULLER $375,000$371,000$329,0001.1%14.0%365 KARAMEA $412,000$393,000$336,0004.8%22.6%21 REEFTON $324,000$306,000$262,0005.9%23.7%29 WESTPORT $371,000$381,000$329,000 2.6%12.8%179 LANSDOWNE $734,000$760,000$692,000
NELSON $850,000$903,000$823,000 -5.9%3.3%960 ATAWHAI $973,000$1,024,000$936,000 5.0%4.0%57 BISHOPDALE $794,000$831,000$739,000 4.5%7.4%33
WHITBY $1,091,000$1,139,000$1,116,000 4.2% 2.2%215
TOTARA PARK $749,000$848,000$838,000 11.7% 10.6%36
BROOKLYN $1,241,000$1,380,000$1,267,000 10.1% 2.1%88 CHURTONPARK $1,186,000$1,351,000$1,259,000 12.2% 5.8%106
GRENADAVILLAGE $1,135,000$1,306,000$1,188,000 13.1% 4.5%40
CROFTONDOWNS $1,179,000$1,363,000$1,204,000 13.5% 2.1%28
MAUPUIA $1,085,000$1,190,000$1,081,000 8.8%0.4%24
BRITANNIAHEIGHTS $1,551,000$1,682,000$1,469,000 7.8%5.6%20 ENNERGLYNN $942,000$994,000$870,000 5.2%8.3%30
WAIRARAPA$1,022,000$1,049,000$958,000
NEWTOWN $1,091,000$1,260,000$1,157,000
34 OneRoof.co.nz
MELROSE $1,165,000$1,357,000$1,300,000 14.1% 10.4%27
SOUTH 2.6%6.7%336
BLENHEIM $638,000$640,000$619,000 0.3%3.1%178
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877 ONEROOF VALOCITYHOUSE VALUEINDEX
TOITOI $568,000$625,000$565,000 9.1%0.5%45
PAPARANGI $953,000$1,101,000$1,003,000
NGAIO $1,246,000$1,392,000$1,268,000
ASCOT PARK $727,000$809,000$787,000 10.1% 7.6%29
RIVERSTONETERRACES
TIMBERLEA $843,000$973,000$932,000 13.4% 9.5%43
MIRAMAR $1,177,000$1,328,000$1,203,000 11.4% 2.2%112
WELLINGTON$1,137,000$1,288,000$1,213,000
MARLBOROUGH $795,000$806,000$751,000 1.4%5.9%1182
MOUNTCOOK $894,000$1,007,000$963,000 11.2% 7.2%55
KENEPURU $936,000$1,056,000$1,004,000 11.4% 6.8%39
ROSENEATH $1,714,000$1,947,000$1,930,000
PORIRUA $947,000$1,033,000$997,000 8.3% 5.0%748
TASMAN $994,000$1,014,000$924,000 2.0%7.6%1190 APPLEBY $1,221,000$1,230,000$1,212,000 0.7%0.7%60 BRIGHTWATER $1,029,000$1,044,000$933,000 1.4%10.3%61 HOPE $1,396,000$1,392,000$1,215,0000.3%14.9%24 KAITERITERI $1,463,000$1,490,000$1,318,000 3.4%6.1%107 $645,000$667,000$608,000 3.3%6.1%216 3.9%5.7%154
WestCoastwasthesole regionto registergrowthinthelastthreemonths.Its averagepropertyvaluewasup2.5%($10,000)to$403,000,drivenby arelatively strongshowingby Westland(up4.2%)andGrey(2.6%).ThefactthatNewZealand's cheapesthousingmarketisstillgrowingwhilethe restofthecountryisin aslumpis telling,butlowsalesactivity(the region recorded 1107settledsalesinthe12months totheendofAugust,downfrom1365inthe12monthstotheendofMarch)makesit hardtodrawtoomanyhardconclusionsaboutpriceandaffordability.
Propertyvaluesintherestof theupperSouthIslandstruggledoverthequarter. Nelson's averagepropertyvaluefell5.9%($53,000)to$850,000asbuyerscontinued their retreat,but theseverefloodingthathaswreakedhavocacrossthe regionislikely tohave abiggerimpactonvaluesinthemonthsahead.
UPPER SOUTH ISLAND
REDWOODTOWN $625,000$642,000$610,000 2.6%2.5%142
MAORIBANK $691,000$806,000$786,000 14.3% 12.1%24
MOUNTVICTORIA $1,386,000$1,610,000$1,470,000 13.9% 5.7%64 10.8% 3.7%105 13.4% 5.7%91 10.5% 1.7%74 15.0% 5.6%59 13.4% 5.0%40 12.0% 11.2%21 11.5%1.4%45 13.5%1.5%39
STRATHMORE PARK $1,190,000$1,375,000$1,172,000
SOLWAY $707,000$736,000$669,000
MAYFIELD $605,000$614,000$605,000 1.5%0.0%31
RENWICK $790,000$811,000$753,000 2.6%4.9%46
BROADMEADOWS $1,012,000$1,152,000$1,070,000 12.2% 5.4%21
MARTINBOROUGH $1,175,000$1,191,000$1,078,000 1.3%9.0%64
CLOUSTONPARK $741,000$854,000$837,000 13.2% 11.5%32
MASTERTON
BROWNOWL $844,000$982,000$953,000 14.1% 11.4%27
BIRCHVILLE $784,000$896,000$869,000 12.5% 9.8%41
TAKAPUWAHIA $679,000$770,000$725,000 11.8% 6.3%21
KHANDALLAH $1,518,000$1,661,000$1,524,000 8.6% 0.4%119
PUKERUABAY $967,000$1,112,000$1,054,000 13.0% 8.3%22
TRENTHAM $774,000$870,000$827,000 11.0% 6.4%142
NELSON $1,179,000$1,269,000$1,107,000 7.1%6.5%26
PAREMATA $1,075,000$1,204,000$1,123,000 10.7% 4.3%32
NEWLANDS $956,000$1,072,000$993,000
HATAITAI $1,313,000$1,513,000$1,394,000 13.2% 5.8%88
BURLEIGH $1,068,000$1,089,000$979,000 1.9%9.1%21
STEPNEYVILLE $1,246,000$1,358,000$1,241,000 8.2%0.4%21
WAKATU $771,000$810,000$722,000 4.8%6.8%20
CAMBORNE $1,008,000$1,120,000$1,067,000 10.0% 5.5%29
PLIMMERTON
ELDERSLEA $810,000$908,000$897,000 10.8% 9.7%36
$1,164,000$1,292,000$1,193,000 9.9% 2.4%31
PINEHAVEN $853,000$952,000$910,000 10.4% 6.3%32
NORTHLAND $1,247,000$1,467,000$1,321,000
GREYTOWN $1,104,000$1,154,000$1,016,000 4.3%8.7%103
WITHERLEA $794,000$816,000$750,000 2.7%5.9%150
$1,148,000$1,259,000$1,167,000 8.8% 1.6%27
RANUI $712,000$794,000$734,000 10.3% 3.0%45
TITAHIBAY $794,000$889,000$873,000 10.7% 9.0%92
UPPERHUTT
WALLACEVILLE $833,000$927,000$912,000 10.1% 8.7%100 11.7% 6.3%2796 AROVALLEY $1,110,000$1,295,000$1,202,000 14.3% 7.7%38 BERHAMPORE $962,000$1,097,000$1,053,000 12.3% 8.6%62
TAWA $985,000$1,072,000$1,011,000 8.1% 2.6%195 TEARO $796,000$871,000$810,000 8.6% 1.7%242 THORNDON $1,127,000$1,251,000$1,181,000 9.9% 4.6%74 WADESTOWN $1,412,000$1,636,000$1,543,000 13.7% 8.5%44 WELLINGTONCENTRAL $627,000$668,000$634,000 6.1% 1.1%64 WILTON $1,097,000$1,286,000$1,129,000 14.7% 2.8%33 WOODRIDGE $1,045,000$1,206,000$1,110,000 13.3% 5.9%25 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
HAVELOCK $722,000$723,000$630,000 0.1%14.6%30
MARLBOROUGH,NELSON, TASMANANDWESTCOAST
FEATHERSTON $692,000$743,000$690,000 6.9%0.3%77
WAIKAWA $967,000$983,000$877,000 1.6%10.3%39
THEBROOK $758,000$806,000$708,000 6.0%7.1%27
NELSON SOUTH $812,000$867,000$771,000 6.3%5.3%75
THE WOOD $834,000$905,000$818,000 7.8%2.0%63
ISLANDBAY $1,326,000$1,455,000$1,355,000 8.9% 2.1%90
JOHNSONVILLE $956,000$1,036,000$999,000 7.7% 4.3%163
KILBIRNIE $1,021,000$1,183,000$1,092,000 13.7% 6.5%41
MARYBANK $974,000$1,001,000$911,000 2.7%6.9%21
SEATOUN $2,007,000$2,267,000$1,979,000
KELBURN $1,672,000$1,930,000$1,773,000 13.4% 5.7%42
KARORI $1,301,000$1,385,000$1,332,000 6.1% 2.3%210
ThequarterlydeclinesinMarlboroughand Tasmanwererelativelygentler -1.4% and2% respectively -buttheslumphaseatenupmuchofthegainsmadeatthestartof theyear.
ISLINGTON $587,000$583,000$499,0000.7%17.6%23
OPAWA $786,000$776,000$680,0001.3%15.6%20
TEMPLETON $864,000$836,000$699,0003.3%23.6%33
REDCLIFFS $1,155,000$1,204,000$1,038,000 4.1%11.3%45
HALSWELL $894,000$907,000$747,000 1.4%19.7%210
BURNSIDE $902,000$900,000$775,0000.2%16.4%198
MOUNTPLEASANT $1,167,000$1,141,000$963,0002.3%21.2%67
DALLINGTON $573,000$581,000$514,000 1.4%11.5%35
HEATHCOTE VALLEY $813,000$841,000$700,000 3.3%16.1%26
MAIREHAU $642,000$647,000$550,000 0.8%16.7%169
HORNBY $614,000$610,000$509,0000.7%20.6%92
BURWOOD $686,000$677,000$568,0001.3%20.8%163
CHRISTCHURCHCENTRAL $716,000$722,000$614,000 0.8%16.6%243
RUSSLEY $728,000$735,000$639,000 1.0%13.9%61
REDWOOD $683,000$689,000$572,000 0.9%19.4%178
EDGEWARE $558,000$557,000$483,0000.2%15.5%105
BROMLEY $532,000$525,000$444,0001.3%19.8%50
HILLSBOROUGH $814,000$833,000$693,000 2.3%17.5%46
KAINGA $548,000$543,000$472,0000.9%16.1%29
At asuburblevel,thebiggestdropwasinAkaroa,ontheoutskirtsofChristchurch. Theholidaytown'saveragepropertyvaluefell 7.2%($73,000)to$945,000.Thenext biggestdropswereinSelwyn'sSpringston(down6.8%)andDunsandel(6.6%).South NewBrighton wasChristchurch'sbiggestrise -itsaveragepropertyvaluewasup2.9% to$613,000 -but of theregion'sbiggestwinners overthequarterwereKaikouraFlat,in Kaikoura(up 11.7%to$870,000),andBenOhau,inMackenzie(up9.5%to$1.09m).
RICCARTON $764,000$768,000$668,000 0.5%14.4%207
ST ALBANS $873,000$894,000$786,000 2.3%11.1%389
BROOMFIELD $711,000$722,000$627,000 1.5%13.4%31
CANTERBURY'S AVERAGE propertyvalueslipped1.1%($9000)overthequarterto $786,000,butisstillup15%($105,000)yearonyear.Canterburyhasbeenoneofthelast regionstofeelthefullimpactoftheslump,althoughvaluegrowthinthefirsthalfofthe yearwasacrawlcomparedtothe9.3%surgeenjoyedinthelastthreemonthsof2021. Butwhiletheregion'shousingmarketisunlikelytoseethesuper-chargedgrowthrates of2021again,it'sequallyunlikelytoexperiencethesteepdeclinesseeninotherpartsof thecountry,withtheregion'smaincentresstillseenasaffordableanddesirablebybuyers rightnow.
ThreeofCanterbury'snine TAswerestillenjoyinggrowth overthequarter: Kaikoura'saveragepropertyvaluewasup13.2%to$761,000;Mackenzie'swasup4% to$801,000and Waimatewasup1.8%$515,000.Homeowners in thosedistrictsshould avoid readingtoomuchinto thesefiguresaslowsales volumesinallthreecouldbe leadingtovolatilityinthemarket.Selwyn, theregion'smostexpensive TA,sufferedthe biggestdrop,at3.7%,whileChristchurch'sdeclinewas arelativelysmall1.1%.
CASHMERE $1,144,000$1,146,000$950,000 0.2%20.4%94
MERIVALE $1,582,000$1,534,000$1,357,0003.1%16.6%125
SUMNER $1,145,000$1,156,000$1,006,000 1.0%13.8%30
$786,000 15.4% AVERAGEPROPERTY VALUEYEARON YEARCHANGE OneRoof.co.nz 35
NEWBRIGHTON $540,000$542,000$461,000 0.4%17.1%148
FENDALTON $1,845,000$1,820,000$1,620,0001.4%13.9%103
SOMERFIELD $759,000$778,000$645,000 2.4%17.7%110
CASEBROOK $846,000$831,000$700,0001.8%20.9%92
SHIRLEY $662,000$668,000$566,000 0.9%17.0%104
HOONHAY $701,000$699,000$583,0000.3%20.2%115
SOUTHNEWBRIGHTON $613,000$596,000$516,0002.9%18.8%43
WAIMAIRIBEACH $952,000$964,000$827,000 1.2%15.1%24
PHILLIPSTOWN $454,000$463,000$395,000 1.9%14.9%111
SPREYDON $654,000$667,000$569,000 1.9%14.9%166
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877 GREY$397,000$387,000$349,0002.6%13.8%413 BLAKETOWN $270,000$279,000$235,000 3.2%14.9%27 COBDEN $252,000$259,000$221,000 2.7%14.0%58 GREYMOUTH $388,000$387,000$339,0000.3%14.5%98 KARORO $510,000$494,000$455,0003.2%12.1%23 MARSDEN $658,000$636,000$586,0003.5%12.3%21 PAROA $614,000$586,000$548,0004.8%12.0%27 RUNANGA $233,000$229,000$202,0001.7%15.3%25 WESTLAND $449,000$431,000$399,0004.2%12.5%329 ARAHURAVALLEY $604,000$577,000$550,0004.7%9.8%25 FRANZJOSEFGLACIER $490,000$468,000$439,0004.7%11.6%30 HOKITIKA $397,000$396,000$361,0000.3%10.0%97 RUATAPU $547,000$541,000$477,0001.1%14.7%21 CANTERBURY$786,000$795,000$681,000 1.1%15.4%13867 ASHBURTON $609,000$610,000$533,000 0.2%14.3%921 ALLENTON $623,000$622,000$536,0000.2%16.2%214 ASHBURTON $508,000$498,000$441,0002.0%15.2%119 HAMPSTEAD $441,000$441,000$378,0000.0%16.7%86 HUNTINGDON $1,047,000$1,039,000$958,0000.8%9.3%48 METHVEN $684,000$676,000$585,0001.2%16.9%113 NETHERBY $542,000$549,000$471,000 1.3%15.1%60 RAKAIA $558,000$545,000$476,0002.4%17.2%68 TINWALD $599,000$597,000$533,0000.3%12.4%130 CHRISTCHURCH $790,000$799,000$687,000 1.1%15.0%7212 ADDINGTON $556,000$559,000$473,000 0.5%17.5%113 AIDANFIELD $958,000$942,000$802,0001.7%19.5%34 AKAROA $945,000$1,018,000$881,000 7.2%7.3%21 ARANUI $465,000$470,000$401,000 1.1%16.0%91 AVONDALE $543,000$536,000$457,0001.3%18.8%72 AVONHEAD $839,000$830,000$728,0001.1%15.2%204 AVONSIDE $545,000$533,000$470,0002.3%16.0%28 BECKENHAM $838,000$875,000$756,000 4.2%10.8%31 BELFAST $697,000$708,000$609,000 1.6%14.4%80 BISHOPDALE $695,000$694,000$588,0000.1%18.2%164
HEIHEI $610,000$617,000$521,000 1.1%17.1%51
NORTHCOTE $599,000$604,000$519,000 0.8%15.4%62
LINWOOD $491,000$494,000$423,000 0.6%16.1%225
ILAM $966,000$982,000$863,000 1.6%11.9%191
HAREWOOD $1,125,000$1,116,000$941,0000.8%19.6%39
RICHMOND $554,000$570,000$483,000 2.8%14.7%88
STROWAN $1,300,000$1,299,000$1,070,0000.1%21.5%73
NORTHNEWBRIGHTON $569,000$559,000$478,0001.8%19.0%91
MARSHLAND $1,126,000$1,117,000$904,0000.8%24.6%86
SOCKBURN $659,000$663,000$566,000 0.6%16.4%74
NORTHWOOD $1,145,000$1,157,000$945,000 1.0%21.2%111
SOUTHSHORE $710,000$692,000$592,0002.6%19.9%21
HILLMORTON $701,000$700,000$597,0000.1%17.4%50
SYDENHAM $569,000$578,000$512,000 1.6%11.1%154
HUNTSBURY $1,139,000$1,139,000$991,0000.0%14.9%57
BRYNDWR $805,000$798,000$709,0000.9%13.5%117
SAINTMARTINS $747,000$767,000$645,000 2.6%15.8%48
WAINONI $491,000$492,000$439,000 0.2%11.8%58 WALTHAM $508,000$518,000$433,000 1.9%17.3%93 WESTMORLAND $1,172,000$1,149,000$968,0002.0%21.1%27 WIGRAM $906,000$911,000$737,000 0.5%22.9%77 WOOLSTON $547,000$558,000$474,000 2.0%15.4%250 YALDHURST $1,091,000$1,081,000$928,0000.9%17.6%34 HURUNUI $665,000$679,000$585,000 2.1%13.7%407 AMBERLEY $701,000$717,000$613,000 2.2%14.4%119 HANMERSPRINGS $746,000$777,000$671,000 4.0%11.2%100 LEITHFIELD $661,000$672,000$567,000 1.6%16.6%40 KAIKOURA$761,000$672,000$642,00013.2%18.5%116 KAIKOURA $699,000$631,000$596,00010.8%17.3%56 KAIKOURAFLAT $870,000$779,000$727,00011.7%19.7%32 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
UPPERRICCARTON $705,000$731,000$631,000 3.6%11.7%93
CANTERBURY
PARKLANDS $759,000$747,000$647,0001.6%17.3%178
PAPANUI $777,000$794,000$667,000 2.1%16.5%137
LYTTELTON $768,000$777,000$663,000 1.2%15.8%29
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877 MACKENZIE $801,000$770,000$720,0004.0%11.3%234 BENOHAU $1,095,000$1,000,000$927,0009.5%18.1%22 FAIRLIE $545,000$520,000$478,0004.8%14.0%37 LAKETEKAPO $1,131,000$1,087,000$1,057,0004.0%7.0%50 TWIZEL $749,000$727,000$673,0003.0%11.3%102 SELWYN$988,000$1,026,000$846,000 3.7%16.8%2108 DARFIELD $857,000$875,000$699,000 2.1%22.6%127 DUNSANDEL $849,000$909,000$716,000 6.6%18.6%27 KIRWEE $1,085,000$1,087,000$844,000 0.2%28.6%40 LEESTON $793,000$821,000$657,000 3.4%20.7%86 LINCOLN $1,045,000$1,060,000$863,000 1.4%21.1%353 PREBBLETON $1,337,000$1,378,000$1,104,000 3.0%21.1%124 ROLLESTON $893,000$926,000$783,000 3.6%14.0%983 SOUTHBRIDGE $666,000$696,000$564,000 4.3%18.1%35 SPRINGSTON $1,042,000$1,118,000$864,000 6.8%20.6%58 TAITAPU $1,513,000$1,568,000$1,229,000 3.5%23.1%37 WESTMELTON $1,419,000$1,431,000$1,138,000 0.8%24.7%104 WINDWHISTLE $741,000$766,000$608,000 3.3%21.9%26 TIMARU $582,000$584,000$519,000 0.3%12.1%1096 GERALDINE $581,000$582,000$513,000 0.2%13.3%100 GLENITI $799,000$808,000$716,000 1.1%11.6%79 GLENWOOD $550,000$539,000$488,0002.0%12.7%49 HIGHFIELD $606,000$598,000$528,0001.3%14.8%96 KENSINGTON $459,000$452,000$405,0001.5%13.3%31 MAORIHILL $575,000$575,000$534,0000.0%7.7%31 MARCHWIEL $526,000$525,000$462,0000.2%13.9%75 OCEANVIEW $632,000$631,000$556,0000.2%13.7%23 PARKSIDE $447,000$447,000$413,0000.0%8.2%74 PLEASANTPOINT $588,000$577,000$510,0001.9%15.3%37 SEAVIEW $468,000$472,000$431,000 0.8%8.6%60 TEMUKA $498,000$491,000$437,0001.4%14.0%123 WAIMATAITAI $514,000$508,000$451,0001.2%14.0%47 WATLINGTON $460,000$467,000$420,000 1.5%9.5%32 WESTEND $492,000$491,000$438,0000.2%12.3%67 WAIMAKARIRI $838,000$846,000$718,000 0.9%16.7%1598 ASHLEY $986,000$991,000$822,000 0.5%20.0%20 BURNTHILL $923,000$907,000$786,0001.8%17.4%26 CUST $1,099,000$1,072,000$903,0002.5%21.7%20 EYREWELL $1,038,000$1,033,000$860,0000.5%20.7%26 FERNSIDE $1,258,000$1,269,000$1,076,000 0.9%16.9%32 KAIAPOI $686,000$694,000$586,000 1.2%17.1%302 LOBURN $1,119,000$1,103,000$916,0001.5%22.2%49 OHOKA $1,465,000$1,448,000$1,200,0001.2%22.1%33 OXFORD $691,000$705,000$591,000 2.0%16.9%81 PEGASUS $854,000$867,000$702,000 1.5%21.7%198 RANGIORA $723,000$725,000$623,000 0.3%16.1%447 SEFTON $1,003,000$984,000$819,0001.9%22.5%20 SWANNANOA $1,238,000$1,237,000$1,030,0000.1%20.2%46 WAIKUKUBEACH $659,000$669,000$580,000 1.5%13.6%31 WOODEND $749,000$772,000$640,000 3.0%17.0%176 WAIMATE $515,000$506,000$432,0001.8%19.2%175 WAIMATE $496,000$488,000$410,0001.6%21.0%142 AnaerialviewofLakeTekapo,in Mackenzie,Canterbury. Thetown'saverageproperty valuejumped4%inthelastthreemonths to $1.131m. Photo /GettyImages LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS 36 OneRoof.co.nz
WHANGANUI’SHOMEOF 190VICTORIAAVE,WHANGANUI|PH063484877 OTAGO$952,000$956,000$860,000 0.4%10.7%5290 CENTRAL OTAGO$908,000$888,000$783,0002.3%16.0%624 ALEXANDRA $756,000$753,000$685,0000.4%10.4%134 BRIDGEHILL $908,000$905,000$804,0000.3%12.9%38 CLYDE $977,000$939,000$787,0004.0%24.1%35 CROMWELL $963,000$939,000$835,0002.6%15.3%207 MOUNTPISA $1,369,000$1,310,000$1,095,0004.5%25.0%27 CLUTHA $445,000$454,000$405,000 2.0%9.9%360 BALCLUTHA $446,000$456,000$410,000 2.2%8.8%100 KAITANGATA $286,000$289,000$245,000 1.0%16.7%20 MILTON $447,000$460,000$410,000 2.8%9.0%65 WAIHOLA $666,000$688,000$628,000 3.2%6.1%20 DUNEDIN $707,000$737,000$704,000 4.1%0.4%2265 ABBOTSFORD $655,000$704,000$674,000 7.0% 2.8%33 ANDERSONSBAY $719,000$771,000$731,000 6.7% 1.6%44 BELLEKNOWES $852,000$887,000$823,000 3.9%3.5%37 BROCKVILLE $533,000$567,000$544,000 6.0% 2.0%21 CALTONHILL $503,000$525,000$511,000 4.2% 1.6%32 CAVERSHAM $479,000$514,000$484,000 6.8% 1.0%46 CONCORD $620,000$642,000$622,000 3.4% 0.3%28 CORSTORPHINE $650,000$684,000$624,000 5.0%4.2%32 DUNEDINCENTRAL $751,000$785,000$736,000 4.3%2.0%73 FAIRFIELD $805,000$831,000$773,000 3.1%4.1%42 FORBURY $484,000$506,000$498,000 4.3% 2.8%26 GREENISLAND $625,000$657,000$642,000 4.9% 2.6%68 HALFWAYBUSH $677,000$712,000$664,000 4.9%2.0%33 HELENSBURGH $754,000$795,000$745,000 5.2%1.2%26 KAIKORAI $625,000$651,000$628,000 4.0% 0.5%38 KARITANE $747,000$773,000$652,000 3.4%14.6%22 KENMURE $651,000$700,000$659,000 7.0% 1.2%42 MAORIHILL $1,139,000$1,155,000$1,060,000 1.4%7.5%48 MORNINGTON $610,000$641,000$630,000 4.8% 3.2%58 MOSGIEL $766,000$774,000$747,000 1.0%2.5%320 MUSSELBURGH $689,000$718,000$682,000 4.0%1.0%37 NORTHDUNEDIN $792,000$818,000$795,000 3.2% 0.4%45 NORTH EAST VALLEY $580,000$594,000$580,000 2.4%0.0%77 OPOHO $753,000$775,000$726,000 2.8%3.7%20 RAVENSBOURNE $568,000$582,000$555,000 2.4%2.3%21 ROSLYN $940,000$972,000$919,000 3.3%2.3%41 SAINTCLAIR $966,000$1,004,000$904,000 3.8%6.9%52 SAINTKILDA $530,000$553,000$532,000 4.2% 0.4%120 SAWYERSBAY $711,000$732,000$656,000 2.9%8.4%34 SHIELHILL $832,000$891,000$830,000 6.6%0.2%22
LOWERSHOTOVER $1,623,000$1,643,000$1,373,000 1.2%18.2%81
WANAKA $1,993,000$2,032,000$1,661,000 1.9%20.0%393
DraggingSouthlanddownwasthe3%valuedeclineinits biggestcentre, Invercargill.TheslideinSouthlandandGoredistrictswassmaller(1%and0.2% respectively) butboth TAsare low-salesenvironmentsand haven'tseentherapid growthseeninthelikesof Wellington.
FERNHILL $1,238,000$1,268,000$1,169,000 2.4%5.9%52
TAINUI $645,000$676,000$650,000 4.6% 0.8%24
GLENORCHY $1,405,000$1,359,000$1,127,0003.4%24.7%26
WAIKOUAITI $531,000$546,000$515,000 2.7%3.1%37
WAITAKI $571,000$561,000$489,0001.8%16.8%583
QUEENSTOWN-LAKES$1,878,000$1,845,000$1,597,0001.8%17.6%1458
LAKEHAWEA $1,219,000$1,226,000$957,000 0.6%27.4%50
LOWER SOUTH ISLAND
ALBERTTOWN $1,497,000$1,435,000$1,234,0004.3%21.3%68
Otago'smostexpensivehousingmarket,Queenstown-Lakes,hasn'tsuccumbed tothemarketdownturnyet,withitsaveragepropertyvalueup1.8%($33,000)over thequarterto$1.87m.The region'sbiggesthousingmarketontheother handhasfelt thewinterchill.Dunedin'saveragepropertyvaluefell4.1%($30,000)overthesame periodto$707,000,andisjust0.4%up yearonyear,withhousepricesin13ofthecity's suburbslowerthanthey were inSeptember2021.
OneRoof.co.nz 37
HAMPDEN $463,000$461,000$401,0000.4%15.5%26
ARTHURSPOINT $1,589,000$1,525,000$1,405,0004.2%13.1%30
LAKEHAYES $2,481,000$2,334,000$1,933,0006.3%28.3%68
WAVERLEY $827,000$886,000$834,000 6.7% 0.8%38
KELVINHEIGHTS $2,602,000$2,660,000$2,224,000 2.2%17.0%22
HOLMESHILL $616,000$595,000$518,0003.5%18.9%42
FRANKTON $1,151,000$1,189,000$1,088,000 3.2%5.8%89
KAKANUI $643,000$630,000$541,0002.1%18.9%26 OAMARU $471,000$457,000$404,0003.1%16.6%71 OAMARUNORTH $507,000$502,000$438,0001.0%15.8%140 OTEMATATA $588,000$562,000$502,0004.6%17.1%22 PALMERSTON $443,000$437,000$395,0001.4%12.2%42 SOUTHHILL $555,000$547,000$474,0001.5%17.1%76 WESTON $771,000$742,000$602,0003.9%28.1%31 SOUTHLAND $520,000$532,000$477,000 2.3%9.0%2265 GORE $456,000$457,000$417,000 -0.2%9.4%277 EAST GORE $399,000$381,000$336,0004.7%18.8%30 GORE $473,000$470,000$437,0000.6%8.2%174 MATAURA $242,000$254,000$224,000 4.7%8.0%47 INVERCARGILL $513,000$529,000$483,000 3.0%6.2%1374 APPLEBY $327,000$353,000$319,000 7.4%2.5%92 AVENAL $509,000$526,000$468,000 3.2%8.8%26 BLUFF $326,000$350,000$313,000 6.9%4.2%62 CLIFTON $379,000$402,000$365,000 5.7%3.8%38 GEORGETOWN $388,000$397,000$354,000 2.3%9.6%45 GLADSTONE $643,000$660,000$587,000 2.6%9.5%56 GLENGARRY $436,000$454,000$416,000 4.0%4.8%88 GRASMERE $478,000$493,000$448,000 3.0%6.7%70 HARGEST $542,000$550,000$487,000 1.5%11.3%25 HAWTHORNDALE $484,000$508,000$457,000 4.7%5.9%22 HEIDELBERG $421,000$426,000$386,000 1.2%9.1%60 KINGSWELL $403,000$420,000$379,000 4.0%6.3%59 NEWFIELD $443,000$458,000$425,000 3.3%4.2%56 OTATARA $759,000$764,000$689,000 0.7%10.2%86 RICHMOND $497,000$524,000$467,000 5.2%6.4%64 ROSEDALE $738,000$742,000$658,000 0.5%12.2%30 SEAWARDBUSH $959,000$956,000$851,0000.3%12.7%21 STRATHERN $378,000$397,000$357,000 4.8%5.9%90 TURNBULLTHOMSON PARK $386,000$402,000$370,000 4.0%4.3%20 WAIKIWI $627,000$630,000$570,000 0.5%10.0%80 WAVERLEY $575,000$591,000$527,000 2.7%9.1%44 WINDSOR $590,000$593,000$555,000 0.5%6.3%106 SOUTHLAND $566,000$572,000$494,000 1.0%14.6%614 LUMSDEN $359,000$367,000$308,000 2.2%16.6%26 MAKAREWA $730,000$733,000$658,000 0.4%10.9%26 MANAPOURI $631,000$625,000$559,0001.0%12.9%20 RIVERSDALE $498,000$507,000$424,000 1.8%17.5%20 RIVERTON $644,000$651,000$561,000 1.1%14.8%61 TEANAU $712,000$711,000$645,0000.1%10.4%152 WINTON $599,000$610,000$530,000 1.8%13.0%92 LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS LOCATION CURRENT AVERAGE PROPERTY VALUE THREE MONTHS AGO 12 MONTHS AGO QoQ CHANGE YoY CHANGE SETTLED SALES LAST12 MONTHS
SOUTHDUNEDIN $433,000$450,000$448,000 3.8% 3.3%92
WAKARI $639,000$671,000$648,000 4.8% 1.4%43
OTAGOAND SOUTHLAND
QUEENSTOWN $1,611,000$1,577,000$1,415,0002.2%13.9%149
KINGSTON $787,000$795,000$682,000 1.0%15.4%37
Otago'saveragepropertyvaluedropped0.4%($4000)to$952,000inthelastthree months,whileSouthland'sfell2.3%($3000)to $520,000overthesameperiod.Property valuesinboth regionsarestill more than30%abovewhere they were atthe startofpostCovidboom,but thegainsmadeinthelatter halfoflastyearwillslowlybeeatenaway bythe slump.
JACKSPOINT $1,908,000$1,865,000$1,548,0002.3%23.3%169
ARROWTOWN $2,443,000$2,388,000$1,983,0002.3%23.2%99
time,testthemarketto seewhetherthatplaceyoulove reallyisoutofyourpricerange.Ifyou’rereadytobuy, theheadlines areirrelevant.It’sallaboutwhatgoeson betweenyouandthe vendor.
PH063484877 |190VICTORIA AVE, WANGANUI DIMOCKS HOMESTORE OPEN 7DAYS SALESuper Spring SUPERDISCOUNTS IN-STORENOW Soit’s agreattimetochoose from agreatrange ATLANTA Recliner &Footstool NOW $2,799* SAVE $900 OakBasein EssenzaLeather ARNA ChaiseModular NOW $2,999* SAVE $1,000 InHighRollerFabric 25% off* 20% off* over SPECIAL OFFER LIMITEDTIMEONLY. WHILESTOCKSLAST. Visit your nearestLa-Z-Boy stockisttoday andenjoy specialofferson agreat rangeof recliners, sofas, liftchairsandmore. COMMENT
Thesethoughtsareneitherunreasonable,nornew–infacteverygenerationoffirst-homebuyersthatwent beforeyouhavegrappledwiththesameissues–sohere
aresomequestionsthatmighthelp youtodecidewhetherwaitingis reallytherightchoiceforyou:
Did youpredictthatthe propertymarket would peakin Novemberoflastyear?
Iftheanswertothisquestionisyes –ifyourplanisto remain ahomeownerineitheryourfirstorsubsequent homes –thenthetimetobuyisnow.Why?Because themediumtolong-termtrajectoryofhouseprices isupwhichmeansthatwhateveryoupaytodaywill beeclipsedbywhatyourhouse is worthin10,15or 20years. Ioncehaggledoverthe last$5000in ahouse purchasewhereIeventuallypaid$371,500.Eighteen yearslaterthathouseisnowwortharound$1.8million. Therateofgrowthmaynotbeatquitethatpacegoing forward,butitillustratestheimportanceofkeepingthe biggerpictureinmind.
I
3
Whyright nowisstill thebesttimetobuy
ASHLEYCHURCH’S adviceforthosewhoareholding back because of house priceandinterest rateworries. "HOME OWNERSHIP TRANSFORMSOUR RELATIONSHIPWITH SOCIETY.ITENHANCESOUR SENSEOFCIVICRESPONSIBILITY AND,OVER TIME,INCREASES OURWEALTH." 38 OneRoof.co.nz
Buyingnowdoesn’tmeanyoucan’tmake agreat purchase.Oneoftheadvantagesof aflatmarketisthat everythingisupfornegotiation.Ifyouhavetheluxuryof
2
Why?Becausehome-ownershiptransformsour relationshipwithsociety.Itenhancesoursenseofcivic responsibility,amplifiesourcontributiontotheeconomy, givesmeaningtoourparticipationinsocialdemocracy and,overtime,increasesourwealth.
Infact,NewZealandhousepricesalmostexactly doubledinvalue,onaverage,ineverydecadebetween 1980and2010–anddoubledagaininthe12years between2010and2022–withthatgrowthinhousevalues givingusthefreedomtotravel,investinbusinesses, assetsandideas,improveourlivesandprepareforour retirement.It’sprimarilyforthisreasonthatIstrongly believethatthere’sno‘bad’timetobuyandthatthe righttimetogetintothemarketisassoonasyou’reina positiontodoso.
Ialreadyknowyouranswertothisquestion –it’s‘no’. Ofcourseyouexpectyourincometoincreaseovertime–andthe sameistrueofprettymucheveryotheraspectof yourlife.Lifeisaboutchangeandchallenges –somewill begood, somemaybenotsogood –butmostofus come throughthetoughtimesstrongerfortheexperience. Nothinginlifeiscertain–butowningyour ownhome willgiveyou adegreeofindependenceandstability whichwillmakeitthatbiteasiertofacethechallenges thatmight comeuponyou.
Bestofluck,whateveryouchoosetodo.
’vehadthevery real privilegeof mentoring manypeopleintheirpropertyjourney overthe years –butby far themostsatisfyingofthese relationships arethosewhich haveinvolvedhelping people getintotheir firsthome.Thereare few things asfulfillingasknowing thatyou’veplayed apartin helpingtoget someoneontothepropertyladderand, asI’vestatedmanytimesbefore,if Ihadmy way,firsthomeownership wouldbeoneoftheprimarypolicy aspirationsof anygovernment.
Ifyou’reapotentialfirst-homebuyer andhave read thisfaryouprobablyalreadyknowallofthis –but youmayalsobeholdingbackfrom acting basedon uncertaintyabouthouse pricesorinterestrates,orin thebeliefthatyoumightbeable tosnap up abargainby waiting abitlonger.
4Do youexpecttobeearningwhatyou’re earningnowin20years?
•AshleyChurchisapropertycommentatorfor OneRoof.co.nznzandarealestatebusinessowner. EmailhimatAshley@nzmemail.com
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Once you’ve bought ahome,isityour intention to ownone forthe rest of yourlife?
Ifyoudidn’tseethesuddenturninthe marketcominglastyear,you’reingoodcompany. Noonedid.Foralloftheheadlines, hyperbole –notoneeconomistor commentatorsawthe peak comingandtheywereallcaughtoffguard.My point?Thesameistruewithpickingthebottomofthe market.Everyonethinkstheycandoit,butnoone really can –andwhenitturns,it canturnquickly.
Areyouhoping to get abargain?
Notavailableeverywhere.Oneligiblebroadbandplans. Compatiblesoftware/device required.Spark andpartnertermsapply.Visitwww.spark.co.nz/myspark/myinternet/movehousetolearnmore. Sparkcanhelpsetup yourbroadband. OneRoof.co.nz 39
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