{"id":31164,"date":"2021-03-14T08:57:57","date_gmt":"2021-03-13T19:57:57","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=31164"},"modified":"2021-03-14T08:57:57","modified_gmt":"2021-03-13T19:57:57","slug":"how-home-buyers-are-finding-an-extra-41000-to-spend-at-auction","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/how-home-buyers-are-finding-an-extra-41000-to-spend-at-auction\/","title":{"rendered":"How home buyers are finding an extra $41,000 to spend at auction"},"content":{"rendered":"

PHOTO: Melanie Duca was relieved to buy a home, after months of searching in a rising market.\u00a0Photo:\u00a0Peter Rae<\/span><\/strong><\/p>\n

Ultra-low interest rates are pushing up property prices, with new figures showing the average home buyer could spend $41,000 more at auction than a year ago.<\/p>\n

Interest rates were slashed to boost the pandemic-hit economy and the Reserve Bank this week emphasised it will keep rates low for the next three years even if house prices soar.<\/p>\n

With cheaper mortgage repayments, a borrower on an average income of $89,000 who has saved a 20 per cent deposit could have a budget of $806,250, research from comparison website Canstar found.<\/p>\n

A year ago, the same buyer would have had less borrowing power and a budget of only $765,000. Both figures assume their home loan was at the lowest variable rate.<\/p>\n

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\u00a0<\/strong><\/td>\nRate<\/strong><\/td>\nEstimated borrowing power<\/strong><\/td>\nProperty price with 20% deposit<\/strong><\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Lowest variable rate<\/strong><\/td>\nMar-2020<\/strong><\/td>\n2.44%<\/td>\n$612,000<\/td>\n$765,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Mar-2021<\/strong><\/td>\n1.99%<\/td>\n$645,000<\/td>\n$806,250<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Average variable rate<\/strong><\/td>\nMar-2020<\/strong><\/td>\n3.71%<\/td>\n$532,000<\/td>\n$665,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Mar-2021<\/strong><\/td>\n3.28%<\/td>\n$557,000<\/td>\n$696,250<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
Source:\u00a0www.canstar.com.au<\/a>. Prepared on 3\/03\/2021. Average and lowest variable rates based on owner occupier loans on Canstar\u2019s database.<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
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\u00a0<\/a><\/div>\n<\/div>\n

But with crowds of potential buyers turning up at auctions all armed with more cash, a bigger budget is unlikely to translate to an extra bedroom or more desirable suburb.<\/p>\n

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