Renters should consider buying now – C21NZ

This as median weekly asking rents hit $610

Renters should consider buying now – C21NZ

Tim Kearins (pictured above left), owner of Century 21 New Zealand, said now is the time for tenants to consider buying – and many just might be surprised with what can be achieved with the help of government schemes and pulling resources together.

Kearins’ comments came after the release of the latest Trade Me Property data, which identified Auckland as the most expensive region to rent in the country, after its median weekly asking price climbed to $660 in May – up 10% in just 12 months. Median weekly asking rents nationwide, meanwhile, hit a record high of $610.

“Coming up with a sufficient deposit is often the biggest hurdle, but prospective buyers should look into the government’s first-home buyer assistance,” Kearins said. “Government schemes include First Home Grants, First Home Loans, and First Home Partner.

“Given the sky-high rents and the current buying opportunities, flatmates, friends, and family members should also look into collectively pulling a deposit together and convincing a broker or bank of their ability to service. First-home buyers struggling to get over the line, should also consider a tenant to help their bankability.”

Also helping first-time home buyers step into the property ladder is the Reserve Bank’s recent easing of LVR restrictions – not to mention that vendors are becoming more realistic on their price expectations. The Reserve Bank has also indicated that the OCR has already peaked.

Julius Capilitan (pictured above right), managing director of Century 21 Financial, said there are several ways to help Kiwis buy their first homes, with government schemes making it possible for many to secure a mortgage.

First Home Partner is a shared ownership scheme aimed at aspiring first-home buyers whose deposit and home loan aren’t quite enough to buy a home together with Kāinga Ora. First Home Grants offer eligible first-home buyers up to $20,000 for a deposit while First Home Loans enable eligible buyers to buy a home with a 5% deposit with no price caps.

“This winter is a good time for Kiwis to get on the property ladder,” Kearins said. “Get on a bank’s mortgage calculator to see what’s possible, and most importantly, talk to a broker. Homeownership is now in closer reach for many. It remains a great way to help people’s long-term security and standard of living.”

You can also try out MPA's own free mortgage calculator as an option!

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