The dream of home ownership is alive and well with 91 per cent of Aucklanders wanting to own a home, although just half are actively doing anything about it.
In a survey of more than 500 Aucklanders carried out for real estate firm Barfoot & Thompson, researchers spoke to people aged between 18 and 34 who were yet to buy their first home.
Of those who took part, just 59 per cent thought owning a home was an achievable goal, with many respondents saying they expected to pay $700,000 for a property in the Super City.
According to the survey, people aged 25 years and older see home ownership as less achievable than those aged 18 and 24. However, many people are pursuing their dream, with 18 per cent putting off having children to save their 20 per cent deposit.
Seventy per cent of those surveyed want their own slice of turf, while 9 per cent (typically 18 and 19-year-olds) are considering an apartment.
Peter Thompson, the real estate firm’s managing director, says: “The apartment market in Auckland is growing with considerable pace, and though there are some first home buyers, there are equally as many luxury downsizers and investors.”
Home ownership is a long-term dream for many, with 31 per cent saying it is 10 or more years away.
“Based on these figures, the aging of the first home buyer market is likely to continue,” says Thompson.
Though most of Auckland’s aspiring home buyers (74 per cent) are looking to buy in the city neighbouring regions are also being considered.
Places such as Waikato (15 per cent), Bay of Plenty (13 per cent), and Northland (10 per cent) were identified by survey respondents as alternatives. People are also looking further afield to Wellington (10 per cent).
Almost a third of respondents are prepared to go it alone, while 62 per cent intend to buy with a partner.
More rate cuts
In last week’s podcast I mused aloud, not for the first time, that the official cash rate might go down to 1.75 per cent.
On Monday economists at the ASB said they expected RBNZ governor Graeme Wheeler to make two further 0.25 per cent cuts to the OCR which currently stands at 2.25 per cent.
When those cust come (likely in June and August) the floating mortgage rate must come down to at least 5.20 per cent. And I still expect to see fixed interest rates at below 4 per cent this year from the main banks.