Reality check urged for first-time buyers
Thursday 20 June 2013
Low Auckland rents are creating a generation of home buyers with unrealistic expectations, Auckland Property Investors Association administrator Sarina Yang says.
Yang wrote a blog on the APIA site, saying low rents by international standards were misaligning house expectation and affordability.
“Being able to rent in Parnell is vastly different from being able to buy in Parnell,” she said.
She said first homes were not meant to be glamorous and there were still many houses available in Auckland for less than $500,000. “It is somewhere that is firstly within your affordable range, secondly acceptable for you in terms of living standards, and thirdly positions you in a way so that in a few years’ time you can upgrade to a better place.”
APIA president David Whitburn said the blog was not intended to be rude to first-home buyers. “It’s really hard work but some don’t make it easy for themselves.”
He said investors were competing with first-home buyers in the $400,000 to $600,000 range.
Whitburn said buyers should be prepared to stay in their properties for seven years.