Bay of Plenty Times
  • Bay of Plenty Times home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Property
    • All Property
    • Residential property listings
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport

Locations

  • Coromandel & Hauraki
  • Katikati
  • Tauranga
  • Mount Maunganui
  • Pāpāmoa
  • Te Puke
  • Whakatāne
  • Rotorua

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Thames
  • Tauranga
  • Whakatāne
  • Rotorua

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Bay of Plenty Times

Pain for home buyers

By Ellen Irvine
Bay of Plenty Times·
14 Sep, 2013 01:32 AM4 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

SLIGHT GAIN: The average house sale price in Wairarapa rose by 0.7 per cent between April and July.

SLIGHT GAIN: The average house sale price in Wairarapa rose by 0.7 per cent between April and July.

Some Tauranga first-home buyers will need to save more than their annual salary for a house deposit for even the most basic starter home under new Reserve Bank rules.

From October 1, the chances of securing a home loan with less than 20 per cent deposit will be reduced with the combined dollar amount of loans with deposits below 20 per cent being limited to 10 per cent of a bank's new lending.

The move is designed to cool the property market and reduce the risk of a housing meltdown.

The Bay of Plenty Times Weekend found the cheapest three-bedroom homes on Trade Me this week in Papamoa, Brookfield and Welcome Bay.

We ran the figures to see how much people would need for a deposit for these starter homes, how much their mortgage payments would be and how much they needed to earn to be approved.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Even for a $215,000 house in Welcome Bay, $43,000 needs to be saved for a 20 per cent deposit.

Mortgage broker Chris Rapson of Rapson Loans and Finance said a borrower with no children could secure that sort of mortgage and make the repayments comfortably with a salary of $40,000.

But saving a deposit of $43,000 on a $40,000 salary would be "highly unlikely".

Advertisement
Advertise with NZME.

"There are a lot of people struggling.

"I'm getting a lot of inquiries from people just on the edge of it.

"There are people who have got $40,000 from a matrimonial settlement and want to buy again at $240,000, and I'm saying 'you can't do it'. We can't find the lenders if they want to have only one mortgage," Mr Rapson said.

The figures were the same for the other case studies - a starter home in Papamoa required a $52,800 deposit and would need a $48,000-$50,000 income to service it.

According to the monthly property value index for July, the average house price in Tauranga city was $430,485 and in the Western Bay it was $397,682.

Statistics New Zealand figures from June show the median weekly income for those in paid employment in the Bay of Plenty region was $740 a week - below the national median of $800. Western Bay of Plenty figures were unavailable.

But Mr Rapson said the reality was he did not see a lot of people in Tauranga earning that kind of money.

Saving on a low income was difficult no matter how hard people budgeted, he said. To save $10,000 over two years meant saving $100 a week.

"If you are on a meagre earnings, $17 an hour or whatever, to set aside $100 clear every week, I don't think it's going to happen."

Mr Rapson said it was helpful if parents could lend or gift money, or become a guarantor.

Advertisement
Advertise with NZME.

But his best advice for first-home buyers was to join KiwiSaver.

"A couple after five years would have $15,000 each."

It was difficult for single people or families on one income, he said.

"Look at your costs - once you have paid your expenses, the rest is a choice to spend or save."

Rothbury Tauranga mortgage and risk adviser Mike Williams said the 20 per cent deposit barrier would be too high for some first-home buyers.

"It's going to be very difficult for them, that's for sure.

Advertisement
Advertise with NZME.

"As soon as you get the $50,000, which will take a very long time, you will find that once you have achieved that, the house prices will have gone up."

Mr Williams expected to see more uptake of the Welcome Home Loan package, and said the KiwiSaver first home deposit subsidy was important.

He recommended young people wanting to buy a house save as much as possible, and couples on dual incomes save one income and live off the other.

Budgeting expert Lyn Webster, who has written a book on living on a shoestring, said many people were struggling to save for a house deposit.

Ms Webster suggested making a decision to "put your nose to the grindstone" and slash the grocery budget and living costs for a short time to save.

"There are so many things we buy which are unnecessary. Things you think you have to have in life, but you can get around them.

Advertisement
Advertise with NZME.

"You have to think about how you spend your money."

Real estate agents told the Bay of Plenty Times last month that the 20 per cent deposit could serve to make Tauranga property even more appealing to buyers from more expensive areas such as Auckland and Christchurch, where a 20 per cent deposit was even more unreachable.

Save

    Share this article

Latest from Bay of Plenty Times

Sport

'My moment': NZ-born boxer becomes first Māori to be crowned undisputed world champ

12 Jul 03:58 AM
Bay of Plenty Times

Puchner makes history with silver at U23 canoe slalom world titles

12 Jul 03:37 AM
Bay of Plenty Times

One taken to Tauranga Hospital after SH29 crash

12 Jul 02:27 AM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from Bay of Plenty Times

'My moment': NZ-born boxer becomes first Māori to be crowned undisputed world champ

'My moment': NZ-born boxer becomes first Māori to be crowned undisputed world champ

12 Jul 03:58 AM

In her debut at Madison Square Garden, the 30-year-old produced a 'total beatdown'.

Puchner makes history with silver at U23 canoe slalom world titles

Puchner makes history with silver at U23 canoe slalom world titles

12 Jul 03:37 AM
One taken to Tauranga Hospital after SH29 crash

One taken to Tauranga Hospital after SH29 crash

12 Jul 02:27 AM
Landslide sparks evacuations, roads closed, homes flooded after storm

Landslide sparks evacuations, roads closed, homes flooded after storm

12 Jul 12:43 AM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Bay of Plenty Times e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Bay of Plenty Times
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Bay of Plenty Times
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP