Buying a Home in Tauranga

by Oct 4, 2016First Home Buyers, Mortgages, Non-Bank Lending, Property investment

smiling couple lying on floor Tauranga

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.

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!

The 5 big benefits of Property Investing

Rental property is a popular and profitable form of investment. Buying the right investment property can provide strong capital gains and regular income, while being able to leverage real estate opens up new opportunities for creating wealth.  Thinking about...

How to get a mortgage when you are Self-Employed

There’s a lot to be said for working for yourself. Whether you’re a freelancer, contractor, or small business owner, striking out on your own offers a sense of opportunity that’s hard to find in salaried roles. However, self-employment can make things tricky when it...

Government Housing policy changes – March 2021

Can they work or is there ‘an elephant in the room’? A lot of comment has been made around the Government’s changes to Residential Property Investment over the last few days, so I thought commentary from me, with nearly 30 years in Property Finance, might bring some...

What kind of loans can I get with bad credit?

A few financial slip-ups in the past can have a surprisingly big impact on your credit rating. A bad credit rating indicates that you may be a risky borrower, which can make it difficult to get the bank’s approval when the time comes to apply for a home loan....

LVR changes and what do they mean for you?

Background In 2013 the Reserve Bank introduced LVR restrictions to curb a potential overheating of the property market. As a rule, owner occupiers needed a 20% deposit and investors 40%, later reduced to 30%. There was some leeway with banks able to lend a very small...

Getting a home loan: What to do when the bank says “No”

It’s easy to feel discouraged when a bank rejects your home loan application, but it’s important that you do have other options when it comes to securing a mortgage. Non-bank lending can be an excellent option for home buyers who have had their mortgage applications...

Credit searches – What to know before you apply for a Mortgage or Loan

All Lenders use a credit search as part of their assessment of a Mortgage or Loan Application and there are some things that are important to know. Some Lenders use a credit scoring system, some don’t. Credit Scoring Mainstream lenders use a credit scoring system and...

More Reasons To Be Cheerful

Upturn in House Prices… A couple of the major Banks are predicting house prices to increase by up to 7 per cent next year with the property market due to "spring back to life". This is a welcomed announcement as it comes on the back of a fairly quiet winter - so signs...

Can I get a home loan with bad credit?

Getting a mortgage can be challenging if you have bad credit or no credit history. Banks tend to perceive you as more of a risk and are generally less inclined to approve your home loan application.  But that doesn’t mean it’s impossible to get a mortgage. Here...

The truth about mortgages, interest rates, the housing market and everything else the media likes to sensationalise!

  'House prices down' 'First home buyers finding it impossible' 'Investors exiting the market' Such headlines are gross exaggerations and often blatant misrepresentations of the truth. The Housing Market This is flat, but stable. QV (NZ's leading provider of...

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