HOUSING CRISIS: Number of KIWIS considering buying a property drops significantly

As we come to the end of the year there are signs that 2022 has witnessed a major change in homeownership for the first time in generations.

A new survey has found the number of Kiwis considering buying a property has dropped significantly since last year.

A $600,000 Auckland property has proud new first homeowners, helped by the Government which chipped in $20,000 towards their $60,000 deposit.

“It was super-helpful because it’s not just the deposit you’re paying for, it’s everything else after that – furniture, moving in, appliances,” said first-home buyer Fraser Mann.

It was one of more than 82,000 First Home Grants paid out since 2017, totalling nearly $500 million.

First Home Grants give up to $10,000 per person but to be eligible you must’ve been contributing to KiwiSaver for three years, earn less than the set income caps, live in the property for at least six months, and the house can’t exceed a certain amount price.

While those grants are cash that doesn’t need to be paid back the Government also provides First Home Loans.

Buyers of those homes only need a 5 percent deposit because they’re underwritten by Kainga Ora.

It’s underwritten over 7000 since 2017 valued at more than $2 billion.

But with interest rates rising and banks tightening their lending restrictions, a new survey of 1000 Kiwis by Sharesies and Kantar has found that only 36 percent are now considering buying a property – down 10 percent compared to last year.

This means New Zealand’s historic love affair with real estate may finally be declining.

Mortgage advisor Jamie Sanderson said while First Home Grants and Loans are great there’s room for improvement.

“One thing that could really help first-home buyers is to increase the salary cap because one thing we see is especially when it comes to the bank lending criteria, a lot of people just fall short,” he said.

People like first-home buyer Brad Proctor.

“It was open to us and then we just couldn’t get it based on my brother and I going in it together,” he said.

The Government expanded house price caps in May but not income caps. But it’s promised to review both, every six months.