Hamilton apprentice finds first rung on property ladder a stretch
Hamilton apprentice builder Mark Bell, 22, has been saving for his first home for three years and said the Reserve Bank announcement is "a bit sh.."
"It's just more to save. You think that you're nearly there, but you're not, because they come and stir up the pot a bit."
Mr Bell enlisted the help of Hamilton mortgage company Homeloans Plus to get him into his first property. He had saved $10,000 before yesterday's Reserve Bank announcement and needed another $2500 to get into an entry-level home in the city.
"I'd rather be paying for a mortgage myself and get my flatmates in to help me pay it and make myself better off."
He hates paying rent and would rather put the money towards his own future.
"I would probably be paying the same amount towards my mortgage each week and still be able to save a bit as well."
The Reserve Bank move might make it more difficult for Mr Bell to get a loan and he said he would have to save twice as much for the same mortgage.
"It'd be probably another five years or something, but I'd probably get distracted. I plan to go overseas in the near future, so it'll be put on hold."
Mr Bell works at the Waikato Hospital development for Lobell Construction and expects to complete his training at the end of the year. He is single, has no children and earns $700 to $800 a week, half of which he saves.
"I don't really like owing people stuff," Mr Bell said.
"I like to save and pay them straight away."
Like many builders, he has a hankering for new tools and equipment, but he sticks to a strict budget and was focused on his goal of property ownership.
"Sometimes you walk into Placemakers and you say: I feel like getting that today, but it's like $300."
He would look to buy in a suburb such as Enderley, Melville, Glenview or Hamilton East and plans to be in the building industry for a long time, so believes it makes sense for him to own property. "Once I get into it, it will be heaps easier."