Move to the 'burbs and save

A change in perception can make buying a home more affordable. Photo / Supplied

First-time homebuyers are being told to set aside suburb snobbery if they want to get on to the property ladder.

High interest rates and the end of the easily available 100 per cent mortgage have made it even tougher for wannabe owners to stop being tenants.

But figures collated by the Herald on Sunday reveal renting in trendy parts of Auckland and Wellington costs almost twice as much as a mortgage in less sought-after areas.

Median rent for a three-bedroom house in inner-city Ponsonby is $650, but payments on a house in the west Auckland suburbs of Glendene or Glen Eden would be $343.

Stephen Hart, editor of Where to Live in Auckland, said buyers had a "natural inertia" about moving to unfamiliar places.

"You only feel equipped to buy in areas where you have a reasonable degree of knowledge," he said.

Hart advised buyers to spend time getting to know areas that might suit their budget and needs.

In Auckland, an affordable choice could be Mt Wellington or Panmure, which are close to transport, shopping malls and the city.

Property expert Kieran Trass, who runs the Suburbwatch website, points to Te Atatu Peninsula as a suburb on the up.

"That's one area I'd keep an eye on. It will become upmarket - not quite what happened in Ponsonby in the 80s and 90s but on a smaller scale."

Trass said it's tough to spot emerging areas during a slump, but "once the genuine recovery arrives there will be areas that start to shine and look undervalued."

John Stewart, business development manager for First National real estate agency, said buyers were easily influenced by what they hear about fashionable suburbs.

"Particularly for young ones starting out, they may listen to those fixations. What we're saying is to take an open mind."

Stewart said Porirua, north of Wellington, was a good example: "That's an area you might have thought was not so desirable, but the schools are good, the shopping's great, the transport's fine."

Tim Duncan, from Harcourts Karori, said the shortage of homes for sale was forcing buyers in the capital to be more flexible.

"We've got very little to choose from, and we're finding multiple offers on a lot of properties. People are prepared to move from Karori to Wilton."

Outside the major centres, John Martis from Napier Remax said affordable homes were available in suburbs such as Onekawa and Tamatea.

But buyers were avoiding 1950s and 1960s houses in favour of new, low-maintenance homes with energy-efficient heating.

"Compared to what our mums and dads were willing to put up with, buyers of today, aged between 20 and 35, have higher standards and expectations."

Bayleys Auckland Central residential sales manager Rachel Dovey said first-home buyers could also look to rent somewhere cheaper while saving for a deposit.

But she warned them to bear in mind extra costs, such as a longer commute.

And Massey University property expert Bob Hargreaves said for those who can't shake their snobbery, even the leafiest suburbs can have entry-level properties: "If you still want the right address you may need to look at downsizing to an apartment or a townhouse."