Auckland first home buyer Ollie Wall wasn't worried last winter when he borrowed $520,000 to pay $680,000 for a Freemans Park apartment.
"Since then, places have sold for $805,000 and $820,000," said Mr Wall of apartments in the complex where he has a now-stylish 71sq m two-bedroom ground-level unit near the CBD.
Mr Wall used $30,000 from KiwiSaver, a substantial bank loan and a small amount from "my boss, best friend and dad" Graham Wall who he works with at Graham Wall Real Estate in the city.
"The price didn't bother me.
"I'd rather be paying the mortgage than renting and the mortgage is only $100 a week more than my rent was in Herne Bay anyway. I've sold property to overseas buyers and they always see things with fresh eyes and I've learned from that. That's how I bought this place. I saw the longer term value."
Internal walls were removed, timber floor boards were polished, walls painted white and special furniture brought in to give the living/dining area a more open look.
The annual body corporate fees are reasonable at $1200.
"I'd tell people thinking of buying their first home to just get in. No one has regretted [paying the money] in a few year's time but lots of people have regretted not buying. Just take the leap."