Homeownership, Personal Finance

How to Buy a $650,000 House in NZ

Trade Me Property Search

Hello friends,

Today I will be answering a big question: how might two people earning an average salary buy an average priced property in New Zealand?

Writing this out of curiosity and to inspire & inform, I need to make a few disclaimers. The first is that I will be making assumptions. The second is that I will be over-estimating and simplifying numbers & figures. Banks and financial entities have this disclaimer when presenting their calculators – and creating hypothetical scenarios here is no different because it’s not realistic to personalise this to everyone’s individual situation.

In saying that, I’ve chosen what I believe to be realistic – of the average millennial earning average dollars buying an average house – based on my experience, my knowledge of others’ experiences and good ol’ fashioned research!

I hope this helps to give you an idea of how two people in New Zealand might buy what is officially called an ‘affordable home’ in New Zealand, at the humble price of $650,000.

Let’s call them Jessica and Noah!

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Homeownership, Lifestyle, Money Mindset, Personal Finance

My Personal Home Buying Experience (Auckland, NZ)

Last year, I ticked off one of my bucket list goals: buy a freehold property. And by tick off, I mean literally – it’s long been written in my Bucket List Journal, alongside goals like ‘Go to Japan’, ‘Try anti-gravity yoga’, ‘Go to Tomorrowland in Belgium’ and ‘Fly a plane’. Needless to say, it was a dream come true!

After I shared the news, I got asked more or less the same questions from friends & acquaintances. So today I’d love to share my home buying journey, as a recount of my personal experience – ie. I’m not writing this from a place of trying to give financial advice, but from human to human to share what it was all like.

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The first thing I did was educate myself on KiwiSaver and how it can help you to buy your first home. I researched the eligibility criteria and house caps, then went ahead and applied for the HomeStart Grant. Since I’d been contributing to KiwiSaver for over three years, I was confident I’d be accepted. So when I received my pre-approval, I was ecstatic!

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