First-time buyers are going to extreme lengths to get into their first homes, from living with their parents for nine years to buying in different islands and cities, as new stats from CoreLogic reveal it’s taking longer for those trying to get on the property ladder to save their deposit.

It takes more than 11 years to save a deposit if you’re living in Tauranga, but just eight years in Dunedin. Despite the time taken to save a deposit in Dunedin climbing 42 per cent in ten years, property in the southern city is now attracting buyers from outside the region.

This has increased competition for local first-home buyers, says Dunedin Tall Poppy business owner Leona Munro.

“Pretty much every home in the first-time buyer price bracket is going into multiple offers, and we are holding open homes across the week to keep up with demand.

“Buyers from central South Island and up into the North Island are looking at Dunedin due to the struggle it’s taking to get on the property ladder in places like Auckland and Wellington,” she says.

Further north in Tauranga, saving a deposit takes more than 11 years.

Tougher lending restrictions relating to the condition of the properties are also impacting mortgage approvals for first-home buyers.

Banks are reluctant to lend on properties which need anything more than minor renovations, says Tall Poppy business owner for Tauranga Janet O’Shea.

Tall Poppy business owner for Tauranga Janet O’Shea. Photo supplied.

“Buying something you can fix over time has always been a great starting point for younger buyers, but structural or consent issues are now factors in finance deals falling apart and limiting options for buyers”.

Tauranga’s in-demand property market is also impacting what’s available to first-home buyers.

“Last year, I sold a house to a couple of young professionals in their thirties who had been living with their parents for nine years while saving for their deposit,” she says.

Leona Munro says she expects the average age of first-home buyers to increase again as market conditions improve.

“KiwiSaver scheme is helping many more people get across the line with a deposit for their first home, but it’s taking them longer and longer to reach the deposit threshold and meet conditions set down by the banks.

“Unfortunately, that means it might take even longer for Kiwis to get into their first home,” she says.

The latest stats released by REINZ show that average property values in Tauranga are up 14.1 per cent from January last year and 11.1 per cent in Dunedin.