Reported in today’s NZ Herald, it was revealed that first home buyers are giving up on buying their dream home in the suburbs and instead flocking into buying inner city apartments.
That however is still a mighty struggle, even though some banks have lowered their deposit rate from 50% down to 20%, on a $300,000 apartment that still is a minimum of $60,000 for the deposit.
It’s an area where you have to be very careful and weigh up all your options before taking this route.
What things should you be aware of?
- There has been relatively very little new apartments built for the last few years, so once a demand has been identified, then prices start to rise very quickly.
- The Australian property investors are also buying lots of apartments in the inner city, because of their favourable exchange rate and the high rental yield they can earn.
- Apartment blocks are controlled by Body Corporates (a legal entity that represents the shared elements of the building such as lifts, common areas, etc). It pays to find out how it’s being managed and what sort of rules will apply)
If you want to get out of renting in the suburbs, then this opportunity for home ownership won’t stay as attractive as it currently is for very long.
If on the other hand you enjoy living in the suburbs, then renting is still a good option, and our team is always available to help you find a safe and comfortable home in which you and your family will enjoy.