Why is it feeling harder to get a Mortgage?
Turn on the 6 pm news and you’re likely to see another report on how quickly house prices are increasing. Property prices in New Zealand have almost become a running joke, but the ones laughing tend to be the ones who are already on the ladder.
Over the last 12 months, we’ve seen the average price of a house in Aotearoa increase by 27%. That means if you bought a house for $1,000,000 twelve months ago you may well be staring down the barrel of $270,000 in capital gains.
This is wonderful news for people with property, but it’s devastating for people without and particularly for first home buyers. The price of a home is increasing at a rate that is far outstripping people’s ability to increase their earnings which makes it seem like fulfilling that first home dream is almost impossible.