Quote Originally Posted by Ptolemy View Post
Affordable on what basis? Certainly not a historical one.

Let's take the average property price ($346k), historical average interest rates (8%) and average wage ($46k or $725 a week).
At least 5,878 people thought that buying a house was affordable last month.

Lets not take the average house - why should a person heading out on the property ladder expect to leap immediatly into an "average " house. Lets actually take a house that is affordable relative to a persons income. Heres's one in South Ackland(http://www.trademe.co.nz/Trade-me-pr...-237805252.htm) 2 bedroom for $185k). Or for another $100k what about this 3 bedroom (http://www.trademe.co.nz/Trade-me-pr...-234325368.htm). Sure they aren't average (cos' I don't know how we would define average) - but they are less than the $400k average reported by REINZ.

Lets not take your interst rates. Lets take 6.39% for two years and 5.79 to free up a bit of short term cash. It is of course wise to budget on increased interst rates and a drop in income - but look at the risks and weigh up if they can be taken.

Lets not take a 20% deposit - you can get a loan at 10%. That means on the two bedroom house above you need to find $18,500k. Now take out a pack a day smoking habit (there's $3,650 a year), the weekly lotto ticket (another $780 a year), that dozen of beer or bottles of wine each ($1,040 a year) and you already have $5,500 a year saved - thats only 3 1/3 years you have to save. Flag away that flat screen TV, that Subaru WRX and the coffees and that time drops even more. A real good investment might be a pack of condoms to stop you breeding until you have your mortgage sorted. A home is affordable if you want it.

And don't see debt as your enemy - its your friend. And theres no reason why it can't be a lifelong relationship.