Kiwibank has launched Co-own to help get more Kiwi into homes. Co-own is an alternative option to traditional home ownership where friends and family can team up to get on the property ladder sooner.
According to Kiwibank economists, if a household on the median-income was able to save 15% of their income it would take over 11 years to amass a standard deposit. For an individual it would take even longer.
Kiwibank senior economist Jeremy Couchman says: “The tide is going out on housing affordability, and saving for a deposit is like swimming against the current. New Zealand’s median house price of $885,000 is now over eight times the median household income, the highest ratio we’ve ever seen. The international benchmark for affordable housing is three to four times household income."
With REINZ calculating the median house price in the Auckland region at $1,190,000, in Wellington $993,000, in the Bay of Plenty $960,000 and Canterbury $720,000, Kiwibank is supportive of different options for first home buyers to attain home ownership.
Kiwibank Senior Product Manager for Home Loans Pip Maxwell says: “With current house prices, our customers are looking for alternative ways to get on the property ladder. We know one of the challenges that customers face when buying their first home is saving a 20% deposit, especially with the increased cost of living and rising inflation.
“Not everyone is in a relationship when buying property, so teaming up with close friends or family may be a solution. With Co-own, the deposit can be combined, and property related payments can be shared. This means our customers may be able to enter the property market sooner and buy the home they all want.
“While multi-party borrowing has been accessible to our customers for a while, it’s not well known and seldom tapped into. We’re really excited to help people understand Co-own as an option, and will work with our customers to help them understand the considerations of buying with friends and family,” she said.
Find out more about Co-own or talk to a home loan specialist.
Download our Co-own how-to guide (PDF 238.7 KB) for more information.