New Zealanders who thought owning their own home was an unattainable dream now have the proof.
A new survey shows mortgage repayments on a house could cost up to three quarters of the average take-home pay.
The results released by interest rate website interest.co.nz yesterday showed that 73.5per cent of the average weekly wage was required to make the mortgage repayments on an median-priced house.
By comparison, five years ago in January 2002 it only took 40.3 per cent of the average pay packet to make mortgage payments on a median house.
In Auckland, the most expensive city, it takes 92 per cent of the average pay packet of $682 to meet mortgage repayments. In Wellington that figure is 73.9 per cent and 61.9 per cent in Canterbury.
However, spare a thought for the hospitality and tourism workers living in the Queenstown area. Those on the average wage of $617 would need another $25 to afford the mortgage on the average house.
Least affordable regions (February 2007):
Central Otago Lakes (104.4 per cent of take-home pay)
Auckland (92.0 per cent)
Northland (78.3 per cent)
The most affordable regions:
Southland (37.7 per cent)
Manuwatu/Wanganui (52.2 per cent)
Otago (54.5 per cent)
