Auckland first-time house buyers Tristan and Jessica Lomberg stepped out of the LVR trap by being hard-out savers.
"We're living in a one-bedroom flat and we've been here three years," said Tristan Lomberg, a systems analyst married to primary school teacher Jessica.
"We're a little lucky, going to university and being good savers. We have student loans and a lot of that cash we could have used to pay off the student loans," he said.
Instead, they still have the loans but saved for their big deposit on the $460,000 three-bedroom north-facing place in Mt Wellington which will be built next year. Their mortgage broker advised them to have a 20 per cent deposit, Lomberg said.
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LVRs are affecting at least one friend, forced to look increasingly further out to get into an affordable price range.
That happened to the Lombergs too, who were aiming for eastern Auckland suburbs.
Their new place will be in a planned project of 400 apartments and terrace residences on 10.3ha.
Examine the options
*Borrow the top-up from the bank of mum and dad
*Use the Government-backed Welcome Home Loans scheme (house price limit $485,000 income cap $120,000 a couple)
*Cut your spending and save faster and harder for a deposit
*Use kiwisaver's first-home withdrawal provisions
*Use your credit card to top up your deposit