Still want to move to New Zealand? Think again: New Zealand is now the most expensive country in the world to buy a house when prices are compared to income (By Fitch Ratings' Report "Global Housing and Mortgage Outlook - 2016").
"House is traditionally called affordable when a house cost no more than three times your annual income."
"In 15 years house prices have tripled while income have increased by 66%"
- A typical house in Auckland costs 10 times a typical household income.
- Prices have tripled in the past 15 years whereas incomes have risen by only two-thirds.
- It would take a typical couple aged 25-29 seven years to save a deposit for a $630,000 "affordable" house in Auckland.
- Assuming they had a bank loan for a smaller amount, they would spend almost half their take-home pay in mortgage repayments. Single people on a regular income simply can't afford to buy.
- If you don't own a home in Auckland by the time you're 40, you're unlikely to get one.