Southland the place to be (and buy) if you’re under 30 and looking to get into the property market
We’ve had a peek at some mortgage data to see how young Kiwis are getting on around the country with getting into home ownership. And it turns out young Southlanders are in the best place to get a foot on the property ladder, with double the success rate of under-30 home buyers in Auckland. Our data shows 8.3% of mortgagees in Southland are under 30, compared to a tiny 4.4% in Auckland.
When it comes to property, young Southlanders are way better off than under-30s in any other part of the country, Credit Simple CEO David Scognamiglio says.
“Southland is looking like the place to be for young New Zealanders wanting to get started in home ownership. The idea that salaries and job prospects are only good in major centres such as Auckland and Wellington deserves much closer scrutiny. Statistics on the median weekly income around the country from the June quarter* showed Southland at $903 per week, while the South Island median was $880 and Auckland was $983.
“This data suggests an obvious question: should young New Zealanders start thinking outside the Auckland box when it comes to jobs and buying property?
“No-one wakes up in the morning and says ‘boy I’d like to owe someone half a million dollars’, but that’s the kind of mortgage young people are looking at if they buy in Auckland. Our data shows that the average Auckland mortgagee has $393k of housing debt. That’s 45% higher than the rest of the country – and it makes Southland look like a really smart choice for young people wanting to get ahead.
“Our message to young Kiwis is that if owing half a million dollars on a one-bedroom flat in Auckland isn’t something that gets you excited, and you’re still young, with your options wide open, it’ll pay to check out the job situation and real estate listings in Southland.
“And remember, you can minimise the impact of your mortgage’s interest by shopping around for a better deal. A simple half a percentage point in interest rates could save you a few hundred dollars a month. If you’ve got a good score, the banks want you as a customer, so check out your credit score at C reditSimple.co.nz and get a better deal on your mortgage.”
*Labour Market Statistics (Income): June 2016 quarter, released 7 October 2016.
