I dont think its very fair, working, paying student loan, renting and have kids and now expected to save that much just to own your own home. When if you have a good rent history and your paying $300+ a week rent anyway clearly would be able to pay a mortgage but how the hell are you expected to save that much at the same time, that's an entire salary.
First home buyers in the US where I currently live have access to a government backed FHA mortgage which accepts down payments of as little as 3% for approved buyers. We got our house that way and our mortgage rate is 3.75 and 30 years fixed. For all the negative stuff circulating about America, owning a home is far more accessible here than it is back in NZ.
We have been watching the market from oz to move back and buy but were unaware NZ was moving towards a 20% deposit! Is equity considered? 20% is too much and unrealistic for many.
I think the incentive is to enrol your kids in a kiwisaver programme & start them early so when they are 18 they have a deposit or start of one ... great idea & people should do that, no harm in $2 a week, but most of us facing this option arent in a position to access a programme like that & its too expensive to live let alone try & save it.
Yep it affects me, i had the plan to buy within the next 6-8 months, with the news of minimum 20% blind[siding] us we've had to put the major pressure on to get paperwork sorted before 1 October which is totally less than ideal, we met with our bank on Saturday who said theres been a huge increase in enquiries which again is less than ideal because alot of people will be looking to buy (temporarily) at the same time whereas before it was a buyers market. In short it would be too hard for us after 1 October as it would take us another how many years to save the rest of the deposit & then 30years to pay it off. Who wants to retire with a mortgage?
It's so horrible! My partner and I had planned to buy a house in November after we had sorted out our debt. And our deposit has gone from a good house in a nice area to a house in ford block. How is that fair?
Yeah it's absolutely crap. I'm lucky we got our own home last year but still had to have a 10% deposit on it which wasn't too bad but bloody kiwisaver doesn't let u withdraw all the money, only your contributions, and they make u jump through hoops to do it. All the rich immigrants will be buying up all our housing now cos we won't be able to afford it. Not fair for all the hardworking people that have to pay 300 on rent but they can't afford to save to get a deposit. It's just bullshit!
