I refer to the Roost report for June 2012. This assumes a first home buyer in their late 20’s, and a house in the lower price quartile. The report takes into account house prices, time to save a deposit, after tax income, and interest rates.
In the Manawatu/Wanganui region, a mortgage payment is 28% of weekly take-home pay. Palmerston North is at 36.6% and Wanganui is at 20.2%. I would guess that Feilding would be in the 30% – 33% range.
Our “patch” is far more affordable than most of New Zealand eg North Shore Auckland 88.5%, Hamilton 52.9%, Napier 37.4%, New Plymouth 47.3%, Wellington City 61.1%, Nelson 49.7%, Christchurch 57.2%, Queenstown 80.9%. Invercargill is lower on 26.9%.
Home loans are far more affordable than say 4 years ago when Palmerston North was 57.7%, North Shore Auckland was 118.1% and Queenstown was 128.3%.
Now is certainly a good time to be buying a house!
Kind regards
Michael
