Auckland housing market

[Bjauck]

Yet of the $6billion odd a month residential bank lending 80% is to owner occupiers. Not outpriced then.

After years and years of falling home ownership rates, the last couple of years has indeed seen a bit of a change I believe.

Is that a NZ or Auckland statistic? Always some who can afford to buy. What is the average age of first home buyers in Auckland these days? How many first home buyers have to empty out their retirement Kiwisavers to get a deposit? Maybe there are more first home owners in that group of owner occupier purchasers too? Maybe Auckland home ownership rate will stay above 50%.

[artemis]

After years and years of falling home ownership rates, the last couple of years has indeed seen a bit of a change I believe.

Is that a NZ or Auckland statistic? Always some who can afford to buy. What is the average age of first home buyers in Auckland these days? How many first home buyers have to empty out their retirement Kiwisavers to get a deposit? Maybe there are more first home owners in that group of owner occupier purchasers too? Maybe Auckland home ownership rate will stay above 50%.

FHB's are about 20%of the lending dollars, similar to investors. Lending dollars fairly flat for all sectors. This is not the same as home ownership rate, and in fact if dollars remain fairly consistent while prices increase the rate will be falling.

Reserve Bank residential lending dollars is NZ wide.

How many first home buyers have to empty out their retirement Kiwisavers to get a deposit? None, it is not at all compulsory.

[Bjauck]

....
How many first home buyers have to empty out their retirement Kiwisavers to get a deposit? None, it is not at all compulsory.

Of course it is not compulsory. However with NZ's expensive housing, even for a low quartile house, the reality for many is that do need to empty out their Kiwsaver accounts of their contributions to get a deposit.

Also about 70% of Auckland first home buyers get financial help from families to buy a house. So as it is also a popular investment for some, owner-occupied home ownership is becoming more limited to those with access to inherited wealth.

[SBQ]

Of course it is not compulsory. However with NZ's expensive housing, even for a low quartile house, the reality for many is that do need to empty out their Kiwsaver accounts of their contributions to get a deposit.

Also about 70% of Auckland first home buyers get financial help from families to buy a house. So as it is also a popular investment for some, owner-occupied home ownership is becoming more limited to those with access to inherited wealth.

Personnaly IMO, the Auckland house is a far better investment than Kiwi Saver from a tax point of view. If a person does not have a roof over their head, by all means, they should buy their 1st home before they consider investing into anything else. I can't stress this enough.

BTW, in Canada rolling in an investment scheme is nothing new. Their RRSP way back in 1990 allowed the individual to move the gains in their RRSP, directly as a deposit on their 1st home. The key difference between NZ Kiwi Saver and Canada RRSP is the RRSP grows 100% tax free compounding, whereas the former, they pay all sorts of tax as a managed fund or FIF.