Rising House Prices Hit Home For Young Kiwis

Only a generation or two back, the Kiwi dream of owning your own home was a real possibility for most young New Zealanders. Renting and living in high-rise apartments was something that happened overseas, not here in the good old ‘land of the quarter acre section’.

Today, as I’m sure you know, it’s a different story. Thanks to rocketing house prices and the need for first home buyers to save a 20% home deposit, young Kiwis are becoming increasingly locked out of the market.

In fact, a recent New Zealand Herald article showed that less than one in three young Aucklanders believe they’ll ever own their own home, with many resigned to a lifetime of renting. While over 90% of young Kiwis surveyed were hoping to buy a house, just 38 per cent believed this was realistic in Auckland, where the average value is now a staggering $925,000. And growing.

Another recent Herald article shows that 43 per cent of aspiring young Auckland buyers expect to pay over $700,000 for their first home. That equates to a home deposit of $140,000 – which, given that salaries aren’t keeping up with house prices, makes it even harder to save for a home.

 

So how can we turn ‘generation rent’ into ‘generation own’?

Up until now, the only way for most young Kiwis to get on the property ladder has been to scrimp and save – for years. For many that means putting life plans on hold, sacrificing travel and other ‘luxuries’, flatting for longer or (heaven forbid), moving back in with parents.

If that sounds like you, you’re not alone – one in three New Zealanders aged 25 plus are still living with their parents or delaying having children in order to save that elusive 20% deposit.

Of course, there’s also the time-honoured option of hitting up ‘bank Mum and Dad’, but with parents also coping with increased rates due to rising house prices, and salaries that have remained relatively static, not many parents are in a position to stump up their hard-earned retirement savings to help their children into a home.

 

But it’s not all doom and gloom. Now there’s some good news for first home buyers.

A team of us have been working hard on this problem and we’ve created a game-changing new savings alternative to help young Kiwis save for a home, by saving in houses.

It’s called The Ownery, and it means you can step onto the property ladder from day one, for as little as $500. And because your home savings move at the same rate as the housing market, they stay in step with market values. Which means no more going backwards! Find out how it works here.

The Ownery was founded on the belief that there had to be a better way for first home buyers to take that first, crucial step into the housing market. For our generation and those before us, it was a rite of passage and we’re determined that this generation of New Zealanders should have the same opportunities we had.

We’re incredibly excited to offer this new and relevant tool for first home buyers – and we’re looking forward to helping more and more Kiwis step into home ownership.

So that ‘generation rent’ really can become ‘generation own’.

To see how The Ownery could help you take your first step onto the property ladder, click here.  

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2 Responses to “Rising House Prices Hit Home For Young Kiwis

  • David Geary
    3 years ago

    Hi, just letting you know there are two grammar mistakes in this article (and one same mistake in the other article):
    “Now’s there some good news”
    Should be
    “Now there’s some good news”
    “A team of us been working hard”
    Should be
    “A team of us have been working hard”
    Cheers,
    David

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