As housing prices surge, nearly half of Kiwis are relying on parents to get a foothold on the property ladder, eating into their retirement plans and savings
livia* was giving up on the idea of ever owning a home. The project coordinator and her partner, a teacher, had opted to try to buy in Ōtautahi Christchurch, where prices were lower than other main centres, and they would be closer to family.
“It was an absolute godsend,” Olivia says. “I’m sitting in our house today and I can’t believe it. We couldn’t afford this house now. It’s gone up astronomically.”Over the past year, value estimates for the property have risen so the house is now worth about $200,000 more than what they paid. – with the average contribution being $108,000. In Auckland, New Zealand’s largest city, 58% of children who bought a property had family support, and the amounts they gave were $20,000 more than the national average. Since 2018, mortgage brokers have reported that more than 50% of first-time buyers are doing so with the assistance of their parents, with some putting the figure as high as 60-70% and beyond.
Carolyn Robertson, of Christchurch, says she and her husband were able to buy their home 15 years ago by co-buying with her parents, who already owned a home.They say the inherent inequalities of the market became clear to them through the process of buying: Paul, her husband, was raised by a single mother, whom he says would never have been able to assist in the same way. “I felt a sense of injustice,” he says. “I was super, super grateful for what Caroline’s parents did for us.
Pauline, who works in education in Auckland*, says she and her husband opted to sell the family home and downsize to provide their four children with help for their own deposits. “I feel really strongly about inheritance – I think it’s so bloody stupid to get to the end of your life and leave money to your kids when they don’t need it,” she says. “We could see that housing prices were just going crazy. And we wanted the kids to be able to get into a house.
Eaqub says those concerns appear to be becoming more widespread in New Zealand – and are contributing to shifting political consensus that the housing market must change.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Citi taps Melbourne banker to lead corporate bankingCiti has promoted Alex Allegos to run its corporate banking business in Australia and New Zealand.
Read more »
New Zealand denies entry to autistic daughter of immigrant coupleRules do not allow people to move to New Zealand if they would impose a high cost to the health system
Read more »
New Zealand denies entry to autistic daughter of immigrant coupleRules do not allow people to move to New Zealand if they would impose a high cost to the health system
Read more »
New Zealand unveils plan to tackle climate crisis by adapting cities to survive rising seasProposals to prepare the country for more floods, massive storms and wildfires include building away from high-risk areas and protecting cultural sites
Read more »
New Zealand's hotel quarantine 'lottery' infringed on citizens' right to return home, High Court rulesA crowdfunded High Court review into New Zealand's COVID-19 quarantine regime has found some of its tough border rules at odds with the bill of rights, embarrassing Jacinda Ardern's government.
Read more »
NZ opposition leader popular but battlingThe honeymoon for New Zealand's new opposition leader may be over, with a series of testing interviews putting chrisluxonmp on the spot over tax, inflation and equality. 7NEWS
Read more »