Editor’s Note: Jumping on to NZ’s property ladder

All too often we hear tales of doom and gloom about property affordability, and how people cannot buy their first home.

The operative words here should be “some people” cannot afford to buy their first home. Across New Zealand, young people are finding ways and the means to step foot on to the property ladder.
A colleague and her partner, both aged 21, recently bought their first home together. It was also heartening to recently read about two 19-year-olds who bought a $720,000 house in their home town, Taupō. Both work in supermarkets, and were able to save the $160,000 deposit by doing so.

They are not alone. Teenagers all around New Zealand are foregoing fun times and unnecessary spending to instead save their money, not for a rainy day, but for their future homes. Their disposable income goes into saving for a deposit on a substantial home, rather than on fast, flashy cars, labelled clothing, and boozy nights out with their mates.

In some cases, family and friends also pool resources to buy a home together. Once bought, flatmates and boarders help pay the mortgage.

Occasional treats and the odd night out are essential, however not every weekend. Thinking carefully about how you spend your discretional income will help grow your savings, and get you started.

It’s not just buying a family home, it’s also a great way to enter the investment property market.