With property prices in New Zealand’s most populated Auckland increasing a staggering 25% in 12 months from $920,000 in June 2020 to $1,150,000 it comes as no surprise that lots of Kiwi’s are looking across the ditch. But it’s more than just property prices which are appealing to New Zealanders.
The price of the pandemic
Like many countries across the world, property markets in New Zealand have been greatly impacted. Returning our focus to Auckland, not only are property prices rising as an eye-watering rate, a housing crisis is in full swing with demand far outstripping supply. In fact, it’s not just Auckland experiencing a red hot increase in prices. Across the nation the median residential house price rose 28.7%. To put this into perspective, Australians national median dwelling values have increased 16.1% in the same period.
Buying a family home is harder than ever
Free standing dwellings & townhouses large enough for a family within an hour’s drive of the city regularly sell for in excess of $2,000,000 in Auckland. A higher cost of living couple with a lower average wage means home ownership is out of reach for many, particularly first home buyers.
The Reserve Bank of New Zealand is attempting to ease the pressure on the housing market at the moment, however the interventions they are bringing in are making it harder to buy property for many. These have included new LVR restrictions.
Of course there are First Home Buyer incentives in New Zealand, as there are here, however the rocketing prices putting many first home owners over the price caps for them to access these grants. This in turn puts greater pressure on First Home Buyers needing a higher mortgage, higher deposit and receiving less financial support.
Why might Australia be the answer:
- There is, arguably, much better value in cities such as Brisbane, Perth, Gold Coast and Melbourne with capital growth strong and steady across freestanding property, townhouse and select apartment markets.There is also more stock on the market at a greater range of price points with options for singles, couples and families.
- Australia has some pretty solid government incentives, whilst New Zealand doesn’t have stamp duty, Australia has stamp duty waivers for first home buyers, one off bonus payments for new homes or off the plan building. The good news here, is that most of these are available to New Zealand citizens living and working in Australia.
- Australian lenders provide the ability to borrow with a small deposit of just 8%, with lending up to 95% inclusive of LMI.
- According to our own kiwi expat Nick, the cost of living in Australia is lower, with things like food, fuel ($2.36 a litre in Auckland at the time writing!) and clothes all coming in at a lower price in Australia.
- The average wage in Australian capital cities is higher than New Zealand.
Could Australia represent more bang for your buck? If you’re considering a move to Australia and want to chat about your finance and property options give us a call!