Buying a home in Hamilton

by Sep 2, 2016Uncategorised

Couple looking at a house in Hamilton

With housing prices only rising, first home buyers are searching for locations that are currently undervalued and set to grow. By investing in these markets, first home buyers can grow their own equity and climb the property ladder. Hamilton is particularly primed as an investment opportunity due to its low barriers to entry and high expected growth rate.

Why are first home buyers avoiding Auckland?

Increasing immigration, overseas investment, supply shortages and a low borrowing rate have seen housing prices skyrocket in Auckland. The average price of a house in Auckland reached $942,760 in April, which seems unattainable for many first home buyers. As income hasn’t risen with property prices, banks simply aren’t willing to lend the equity required for young people to enter the housing market.

Whilst mortgage brokers such as iLender are able to offer a solution to those wanting to buy in Auckland and don’t have the same restrictions as the bank, buyers may consider Hamilton to be a safer place for their first property, particularly for rental purposes and up to 80% can be arranged.

Hamilton has high growth potential within New Zealand’s property market

 Hamilton is an ideal alternative to buying in Auckland. In contrast to the average housing price in Auckland of $942,760, Hamilton’s average house costs only $471,072. That lower house price is significantly more affordable for first home buyers, as they then become eligible to receive home loans, short term loans and non-bank lending.

Hamilton has become increasingly popular, which has seen an initial bump in prices. In the past year, Hamilton’s housing prices have risen 25.3%. As this is only half the growth that Auckland has seen, and considering Hamilton’s increasing popularity, it indicates that there is a significant growth expected over the coming years within Hamilton. This makes right now an important time to buy. The longer first home buyers wait to enter the Hamilton property market, the more opportunity for growth they will miss out on. Growth is crucial for first home buyers, as the increase in equity is the key to moving up the property ladder in New Zealand.

You may be reading this and wished that you worked or lived in Hamilton. However, you don’t need to be a local resident to benefit from Hamilton’s growth. By continuing to rent in whichever city you live, even Auckland, you can purchase a house in Hamilton as a rental property and realise equity growth from afar. This can be especially advantageous in a growing city, as you earn both rental income from renting out your house and a capital gain as the property increases in value.

 How to take advantage of the Hamilton property market

 If you’re looking to break into the property market but don’t want to deal with all the red tape of banks, iLender can provide you with financing to buy your first home – even if you have a lower deposit. As the property prices in Hamilton are expected to rise, now is the ideal time for first home buyers to purchase. By getting into the market now, the housing price rises will translate directly to equity growth for you. Whether you require a mortgage broker in Auckland or Hamilton, iLender can assist your entry into Hamilton’s rising property market.

About iLender

At iLender we put your best interests first and not the Bank – our advice is unbiased as all Lenders who we do business with pay about the same in commissions.

Although we are Auckland based Mortgage Brokers, we help customers everywhere in New Zealand and overseas with buying property in New Zealand, as we are very much about online and giving advice here and now!

4 Tiers of Non-Bank Lending: What You Need to Know

It’s currently a struggle for every New Zealander: trying to get the bank to approve their home loan. Lending restrictions are tighter than ever, even for New Zealanders with a perfect credit history.  Luckily, non-bank lenders offer an alternative approach that...

The New Zealand housing market: Is now a good time to buy?

The New Zealand housing market has experienced some major ups and downs in recent months due to some interesting regulatory changes as well as wider global economic conditions.    House prices across the country have started to fall while interest rates have...

4 Reasons we are not in a ‘crash’

There's a lot in the press about house prices and which way they will go. What's not said (because it's not 'newsworthy') is that we've been here before and thrived.  House prices always go up over time and there is nothing to say this will change. Buying and selling...

How to prepare your personal finances when applying for a mortgage

When it comes to securing a competitive home loan, saving up for a deposit is just one piece of the puzzle. Lenders also need to be confident that you’re trustworthy, reliable and financially secure - in other words, you’re someone who’s capable of making mortgage...

Best mortgage rates, 10% deposit owner occupied and 20% rental purchase, self employed with no financials and help for those with bad credit or arrears.

Hundreds of reviews on TradeMe and Google makes us your ‘Number 1’ choice.

Call 0800 536 337