2024 has become the year of the first home buyer, with CoreLogic data showing that this group made up 27 percent of New Zealand’s property market. With falling interest rates, steady property prices, and a stabilising economy, conditions are better for prospective buyers to consider stepping onto the property ladder.
“This strong demand from first home buyers highlights that the Kiwi dream of homeownership is alive and well,” LJ Hooker Group Head of Network NZ Campbell Dunoon said.
“Market conditions are more favourable for first home buyers than they have been in some time. Interest rates are easing, prices are steady, and the housing market has stabilised.
Venturing into the property market is a significant step, and while it’s tempting to focus solely on property prices, buyers should prepare for the additional costs associated with purchasing a home.
“First home buyers need to ensure they have enough funds not only for the deposit but also for essential costs that come with buying a home,” Dunoon said.
Some of the costs to consider include:
“It’s easy to get caught up in focusing on property prices and securing a deposit, but buyers should keep some extra funds on hand to cover these added expenses,” Dunoon said.
He notes that pre-purchase inspection costs vary based on property size and location, while legal fees can also vary, typically around $1,000-$2,000. Knowing when your first mortgage payment is due is equally important, as it usually falls shortly after settlement.
In addition to initial costs, Dunoon points out the importance of factoring in ongoing homeownership expenses like property rates, insurance, and maintenance.
“Understanding these recurring expenses upfront allows first home buyers to establish a sustainable budget that accommodates long-term ownership,” he said.
Five first home buyer-friendly properties across New Zealand
With options around the country, there are affordable homes under $500,000 that offer fantastic lifestyle and value for money. With a deposit of $100,000, monthly mortgage repayments on these homes would typically stay below $2,400 (based on a $400,000 loan at a 6 percent interest rate).
Here are some excellent LJ Hooker listings across New Zealand, each providing strong value, modern living and lifestyle advantages:
156 Bay View Road, Saint Kilda, Dunedin
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Price: $480,000
Located near Dunedin’s renowned St. Clair Beach, this Saint Kilda property combines the best of coastal living with city accessibility. The area is popular with families and first home buyers looking for a balance between leisure and convenience.
4F/30 Westward Ho, Glen Eden, Auckland
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Price: $490,000
This Glen Eden apartment provides an affordable entry point into Auckland’s property market. With high ceilings and easy access to the city centre, it offers urban amenities and spaciousness at a fraction of the cost of central Auckland.
31 Douglas Street, Highfield, Timaru
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Price: $495,000
Located in Timaru, this home offers a relaxed small-town lifestyle with close access to beautiful beaches, scenic landscapes, and wineries. Buyers can enjoy more space and value compared to urban properties while benefiting from a slower pace and local amenities.
12 Leather Street, Huntly, Waikato
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Price: $495,000
Located between Auckland and Hamilton, Huntly is ideal for buyers seeking both affordability and accessibility to major centres. With growing infrastructure, Huntly offers convenient commuting options, scenic views, and value for money.
With stable market conditions, affordable options, and lifestyle perks across New Zealand, first home buyers have a prime opportunity to find a home that suits both their budget and lifestyle.
“Getting on the property ladder is a significant life achievement, and for those with their finances in order, a deposit ready, and are committed to homeownership responsibilities, now is an ideal time to find a place to call home,” Dunoon said.