House buying gets tougher for first timers

Last updated 06:52 18/07/2013
Adam Dawe
DEREK FLYNN

Home sweet home: A requirement for bigger deposits for mortgages will make the dream of home ownership even more distant, says first home buyer Adam Dawe

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Adam Dawe spent two years looking for his first house, before settling on a property in Redwoodtown in December last year.

The 37-year-old cellarhand had lived in a shared house in Blenheim and saved hard for several years to accumulate the $30,000 deposit he needed to purchase a house.

He put $24,000, towards the house mortgage, which was just over 10 per cent of the total $235,000, and the remaining $6000 went towards underfloor and ceiling insulation.

"I had originally planned to buy a place that didn't require a lot of sprucing up," he said.

"But I had to change my parameters and had to settle for a place that was structurally sound, but just required a bit more work."

After looking so long for a property and sacrificing to save a deposit, the thought of having to save another $17,000 seemed "really hard."

The Government's approach of re-writing the banks' rules was overstepping its role, he said.

"Money lending is a business arrangement between the bank and myself. They don't just give it out to anyone, they scrutinise you pretty hard.

"Historically markets have fluctuated up and down, and while homeowners hope the value of their property increases, it's all part of a calculated risk."

The new rules would hit first home buyers the hardest, he said. "People will have to save for longer . . . It's making that dream of home ownership even more distant."

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- The Marlborough Express

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