With the COVID-19 pandemic impacting the property market around the world, it is not surprising that buyers are finding it hard to climb the property ladder. The Real Estate Institute of New Zealand (REINZ)’s latest report revealed the most affordable suburbs in Auckland to help first-home buyers enter the market.
The report found that Avondale is the perfect fit for people who want to live within 10 kilometres of Auckland CBD as it is the most affordable suburb in Auckland, with a median price of only $800,000. Northcote follows with a median price of $921,000and Birkenhead at $950,000. Buyers who want to live a little further out could also find affordable properties at Glen Eden, which has a median price of $698,000.
“First-time buyers have found themselves in a really difficult situation during COVID-19 with the portion of their KiwiSaver fund able to be used for a first home purchase being at a much lower value than many had expected,” Bindi Norwell, chief executive at REINZ, commented.
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The report also identified patterns in the most affordable suburbs based on distance, with the most affordable suburb in the 20 to 25 kilometre bracket being more expensive than the most affordable suburb in the 15 to 20 kilometre bracket.
“Our analysis has shown that a couple of kilometres difference in where you live can save people hundreds of thousands of dollars on the purchase of a home, and when you look at this over the lifetime of a mortgage, this saving would be even greater,” Norwell explained. “This information could be really helpful to those looking to get on the property ladder for the first time, especially as people potentially have more time on their hands to research properties.”
“Additionally, this research could also be helpful for those who have found that being locked down in their home 24/7 has really reiterated their view that they don’t like their current house and therefore, they want to move once lockdown is over.”
Norwell advised buyers to consider price, amenities, school zones, and recreational areas aside from distance.