Taranaki is affordable

Affordability is a big issue today, especially if you’re living in Auckland. Here in Taranaki, affordability of our homes and lifestyles is more achievable – although it can still be a challenge. Considering we don’t experience the same congestion issues as Auckland drivers, and have one of the most beautiful environments to live in, we have a lot to be thankful for. We have excellent schools, great parks and reserves, sporting facilities, galleries and eateries, as well as a generous community when it comes to pulling our weight to help out. We have the ocean and the mountain and a beautiful patchwork of green in between.

The average weekly rent in New Plymouth is $360, which is the same as a year ago. For a young couple who are both working, it will take 24.5% of your income to pay your rent, down from 25.1% a year ago.

At www.interest.co.nz, they do a monthly home loan affordability report. Their New Plymouth report estimates how affordable it would be for a couple where both are aged 25–29 and are working full time, to buy a home at the lower quartile price in New Plymouth. It calculates is that it will take just under 20% of your combined net weekly income to pay for your mortgage. If you were living in Auckland, it would take twice as much (just under 40% of your combined net weekly income.). Our unemployment rate dropped 1% between end of March and the end of June, so employment opportunities seem to be improving too. For a young couple wanting to get ahead, Taranaki is a great option.

The Government’s KiwiSaver HomeStart scheme is about helping first-home buyers pull together a deposit with a grant of up to $10,000 for an existing house and $20,000 for a new home. As an example, a couple who are each on the average income of $60,000 will, after five years in KiwiSaver, now be able to withdraw $45,000 from their KiwiSaver accounts and obtain a HomeStart grant of up to $20,000 if they’re buying a new build or $10,000 if they’re buying an existing house. With this deposit, they may also be eligible for a Welcome Home Loan, which requires only a 10% deposit enabling them to be in the market for a new home of up to $400,000 here in Taranaki.

With all the pressure on housing affordability, Taranaki still stacks up as being a great place to live where opportunities exist.

Jonathan Young is the MP for New Plymouth.