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Home / Bay of Plenty Times

Are HomeStart grants too low for Tauranga?

Zoe Hunter
By Zoe Hunter
Bay of Plenty Times·
8 Dec, 2017 07:00 PM5 mins to read

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First home buyers Michael and Arumia Hayles say HomeStart Grant and KiwiSaver helped them to enter the property market. Photo/Stephen Parker

First home buyers Michael and Arumia Hayles say HomeStart Grant and KiwiSaver helped them to enter the property market. Photo/Stephen Parker

First-home buyers are still finding it difficult to enter the property market, with many saying the HomeStart Grant is too low for Tauranga, according to a registered home valuer.

Tauranga home buyers were eligible for a HomeStart grant if the existing property they wanted to purchase was $500,000 or less or they were building a new home for $550,000 or less. Only those who did not hold a current title could apply for the grant.

But the latest monthly QV House Price Index showed Tauranga's average house price was $688,000.

Anton Jones, from Tauranga First National Realty, was an advocate for increasing the HomeStart Grants.

"It would be good to help the first-home buyers get in to the market with more of a grant," Jones said.

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He said the market was looking steady with good property demand and listings.

"The weather obviously seems to be helping."

According to a spokeswoman from Ministry of Business, Innovation and Employment, which administered Homestart, the ministry could not comment on policy settings made under the previous Government.

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"Housing is a top priority for this Government. Action will be taken to address homelessness [and] state house sell-offs will stop," the spokeswoman said.

"Through its KiwiBuild programme, this Government pledges to build 100,000 high-quality, affordable homes over the next 10 years, half of them in Auckland."


WITHOUT KIWISAVER WHERE WOULD WE BE?
Michael Hayles said he and wife Arumia would not have been able to afford their first home without a boost from the HomeStart grant or KiwiSaver.

The couple, both 27, used KiwiSaver, a HomeStart grant, a small loan from their parents and personal savings to buy their first single-storey, two bedroom home on Waihi Rd.

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"We were quite lucky, we weren't looking for too long. We had a friend who was a real estate agent who helped us," Mr Hayles said.

The new home owner said the HomeStart grant was enough to help him and his wife afford their $390,000 home.

"Without KiwiSaver and the HomeStart grant there was no way we would be able to buy a house," he said.

Mr Hayles said he and his wife were shut out of a lot of properties suitable for them because the homes were up for auction.

"We relied on KiwiSaver for our deposit and purchase, which isn't usually available until after a house has been organised and settlement set."

The couple had been renting and were keen to find a place of their own.

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"We were quite lucky because we did not have any kids so our requirements didn't need a big house," Mr Hayles said.

"We just wanted to get on to the property ladder and not pay someone else's rent."

Mr Hayles said he and Arumia looked at preferred suburbs close to town so the couple could easily go to the gym and musical theatre after work.

"We shut out some parts of Bethlehem, Bellevue and Omokoroa because it was too expensive," he said.

"There was one home we looked at [which] was one bedroom and it was worth $450,000 just to live in the area, and to be honest it wasn't that flash."

Overall, Mr Hayles said the experience was "fun, but challenging".

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WHAT THE FIGURES SHOW:
The QV figures showed Tauranga home values increased 3.3 per cent year on year but decreased 1 per cent over the past three months, with an average house value of $687,310.

The Western Bay of Plenty market continued to rise 5.9 per cent year on year and 2.1 per cent over the past three months, with an average house value of $626,120.

QV Tauranga registered valuer David Hume said the market for houses under $700,000 was more stabilised and some in the industry were describing it as a more normalised market.

"Soaring Kiwifruit orchard prices continue, with some prime established Gold orchards now achieving over $1,000,000 per hectare," he said.

Hume said there was still very strong property demand in Mount Maunganui, with a 716sq m vacant site at 98 Muricata selling for $1.65 million.

"The site previously sold in May 2015 for $1.15 million in what was already considered a hot market at the time."

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ACTOR MOVES TO THE BAY
An actor known for his roles in the Hobbit and television series Spartacus and Arrow will now call Pukehina his home.

Manu Bennett, 48, called his beachfront home on Pukehina Parade his "little sanctuary".

Bennett grew up in Australia enjoying the beachfront lifestyle and loved the idea of owning a home close to the water in the Bay of Plenty.

He admitted Tauranga prices had "gone through the roof" saying home buyers were paying premium price for any waterfront property.

"It is just value for money here," he said. "The prices down here are simply bargains in comparison to anywhere else in the world ... This will be the Gold Coast of New Zealand."

The actor had moved from Australia to Auckland before choosing to settle in Pukehina after dreaming of moving to a beachfront property.

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He said he had looked to buy in Mount Maunganui, but the prices for a beachfront property were two or three times the price for a waterfront property in Pukehina.

"Anybody who can escape the addiction of being in Auckland for a better lifestyle, the Bay has everything to offer," he said.

"If you want to buy a beachfront property there is nothing better than what is on offer here ... This is where I think the future of tourism lies."


HOW MUCH HAVE HOUSES INCREASED IN PRICE?
Tauranga:
Average value: $687,310
Yearly change: 3.3%
Three-month change: -0.1%
Since 2007 market peak change: 42.7%

Western Bay of Plenty:
Average value: $626,120
Yearly change: 5.9%
Three-month change: 2.1%
Since 2007 market peak change: 39%

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