As the New Zealand property market continues to heat up, serial investors, seasoned homeowners and first home buyers are all looking for an opportunity that yields high growth. While many investment groups and professional property investors have been chasing the highest and riskiest growth area of Auckland, it has left other more affordable locations available to first home buyers. Tauranga is particularly attractive to young singles, couples and families. Not only is it affordable, it is one of New Zealand’s property markets that are showing signs of growth.
Auckland is not the place to buy
Buying property in Auckland has both prestige and a high amount of risk. While these factors are attractive to certain investment funds and property developers, they are not always important to first home buyers.
What is important to first home buyers is an affordable price in an area that is expected to grow. They need to be able to afford a home loan, short term loan or non bank lending whilst being in a location that rises in value so they can climb the property ladder. By buying in a more affordable location now, they position themselves to be able to buy property in Auckland in 5 or 10 years’ time.
Auckland has become lea affordable for any first home buyers due to the recent surge in housing prices. It has seen prices hit an average of $942,760 in April. This is due to the increased demand from immigration, foreign investment, housing shortages and low interest rates.
In response, smart first home buyers are looking to areas more favourable to their situation, such as Tauranga.
Tauranga’s attractiveness to first home buyers
Tauranga is the most populated city in the Bay of Plenty Region, on New Zealand’s North Island. Tauranga is a centre of trade, culture, fashion and horticultural science and hosts New Zealand’s largest port. This sound economic base ensures that property prices are not only stable, but set for long term growth. In fact, signs of growth have been strong over the past 12 months. Housing prices in Tauranga have risen 21.5%, which is significantly more than the average rise of property in New Zealand. This demonstrates the popularity compared to the rest of New Zealand and is a trend expected to continue.
The average price for Tauranga is $577,494, which is much more affordable than Auckland’s $942,760. This makes it significantly easier to get a home loan or equity loan, even for buyers with poor credit ratings. Poor credit mortgages will be harder to secure in Auckland than they will be in Tauranga.
How you can enter Tauranga’s property market
If you can see the value and opportunity of entering into Tauranga’s property market, it is recommended that you do so quickly before other investors take advantage of the market’s increase. iLender can ensure that you secure funding to finance your investment. We offer mortgages with lower deposits required than banks, interest only mortgage loans and first home mortgages. As the property prices in Tauranga are expected to rise, now is the ideal time for first home buyers to purchase.