Property Investment Blog

All Posts

Second step on property ladder may be just as hard

If you think getting into your first home means your property problems are over, it might be time to think again.

Auckland's house prices have risen 66 per cent over the past five years, according to Quotable Value's (QV's) price index.

That has meant first-home buyers must look further afield for affordable properties, or consider apartments and units.

But new data released by Corelogic, a research firm in which QV has a stake, has revealed that second-home buyers are also feeling the pinch.

The top 10 suburbs in which Aucklanders buy their second home is very different in 2015 than it was in 2010.

In 2010, Mt Eden was the fourth-most common suburb for people to move to after they sold their first home. Its average price was $778,358.

In 2015, it had dropped to 25th, with an average price of almost $1.5 million.

Mt Albert was the seventh most common option in 2010 but the 17th this year.

Manurewa rocketed up the rankings from 10th in 2010 to second in 2015.

Central Auckland apartments also became more popular - they were third in 2015, and 27th in 2010.

Henderson was the most popular second-home suburb in both years, which Corelogic senior research analyst Nick Goodall said could be due in part to its size. Its average price increased from $386,981 to $602,416.

He created the data by looking at the purchases of people who had sold their first property and bought another within six months.

He said the shift of Mt Eden and Mt Albert down the list was probably because the jump between a first home and a house in one of those suburbs had become too big.

Goodall said apartments were likely to be becoming more popular with second-home buyers as people who had chosen a first home further out of the city decided they would rather not continue to commute.

"As first-home buyers they might have chosen to do the commute as opposed to sacrificing the land but then after considering the cost of transport they might decide they are better off in town."

Greenhithe has become popular as a second-home option. Goodall said while it was pricey it offered more lifestyle properties that buyers might think offered more value.

Real Estate Investar Editor
Real Estate Investar Editor
Real Estate Investar provides intelligent software, tools and data to help you save time and make money in the residential property investment market.

Related Posts

[On-Demand Webinar] How to Find Affordable Capital Growth Properties

Most investors are either priced out of inner or middle ring capital city suburbs or have to resort to sacrificing their lifestyle to be able to afford the out-of-pocket holding costs. Join us for this live webinar and learn how to find and analyse affordable gentrifying areas which are primed to support solid sustained medium to long-term capital growth.

RBNZ Announcement - 13 November 2019

Reserve Bank of New Zealand Announcement - 13 November 2019

[On-Demand Webinar] How to Find Positive Cash Flow Properties

Learn how to find and analyse positively geared investment properties In this webinar replay, you will learn how to find property that will pay for itself, assist with finance serviceability and provide income regardless of what's happening in the property market.