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Owen Vaughan: OneRoof Editor on rising housing affordability · Early Edition with Ryan Bridge

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  Speaker 1: Yet more proof now is the perfect time to buy
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  Speaker 1: a house, particularly if your first time buying. Figures from
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  Speaker 1: Catality Show has to price income ratio back to pre
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  Speaker 1: COVID levels. Mortgage repayments now make up around forty four
• 0:11
  Speaker 1: percent of the median household income. The peak was fifty
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  Speaker 1: seven percent. That was back in twenty twenty two.
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  Speaker 2: Owen Vaughan is the editor of One Roof and with
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  Speaker 2: us this morning.
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  Speaker 3: Good morning, Good morning, Ryan.
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  Speaker 2: You're saying, don't walk, but run to the bank, run.
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  Speaker 3: To the bank. Well, I know where people should run too,
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  Speaker 3: because look when you look at these figures and it's positive,
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  Speaker 3: but I think for a lot of people who are
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  Speaker 3: out in the market, they see things like this and
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  Speaker 3: they just go, Wow, houses still cost a lot. And
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  Speaker 3: I think, yeah, affordability is improved, but I think it's
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  Speaker 3: more about houses are just less unaffordable. But there are
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  Speaker 3: a lot of pockets out in the market that first
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  Speaker 3: one buyers should be targeting. And I think that's where
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  Speaker 3: kind of know that the full should be that buyers
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  Speaker 3: should be still looking for where there's value, and I
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  Speaker 3: think there is a lot of value there.
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  Speaker 2: Where Where are the pockets you're talking about.
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  Speaker 3: Well, not a suburb that's on a lot of people's
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  Speaker 3: radar for a lot of reasons. But o Tara Atara
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  Speaker 3: is a suburb where right now kind of no houses
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  Speaker 3: on full sections are probably the cheapest in Auckland. And
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  Speaker 3: that's a fantastic kind of deal for kind of personal
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  Speaker 3: buyers right now. Like back in the speak of the market,
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  Speaker 3: O Tara was a million dollar suburb. That's hard to imagine,
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  Speaker 3: but the price frenzy that was going on then drove
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  Speaker 3: prices up in that south Aakland suburb which buzz really
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  Speaker 3: a kind of an area where there was those social housing.
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  Speaker 3: It wasn't kind of not a desirable suburb, not land,
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  Speaker 3: but these prices rose to a million dollars and that's
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  Speaker 3: because developers piled in thought they should buy flat sections
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  Speaker 3: for reasonable prices, build townhouses, make a fortune that will collapse.
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  Speaker 3: And now prices in Otara have come down round about
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  Speaker 3: twenty percent since the COVID peak, and pretty decent houses
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  Speaker 3: x statehouses are going from there for around about six
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  Speaker 3: hundred thousand dollars. That's a house in Auckland for six
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  Speaker 3: hundred thousand dollars, And.
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  Speaker 2: Then what will I be worth in ten years?
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  Speaker 3: Well, that's the thing that currently there's a restriction imposed
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  Speaker 3: by water care, and that means that developers can't build
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  Speaker 3: new stock and connect it to the was for supply
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  Speaker 3: sewerage supply. That means those houses are basically worthless developed developers.
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  Speaker 3: But those work here. Restrictions will left in around about
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  Speaker 3: ten years time, so no one should be kind of
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  Speaker 3: piling into Atara for speculation. But it does mean that
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  Speaker 3: that suburb, once there is water or care restrictions are lifted,
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  Speaker 3: maybe in around about ten years, maybe to fifteen years,
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  Speaker 3: they will suddenly be worth a lot more than what
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  Speaker 3: they are now.
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  Speaker 2: Really interesting stuff. I'm calling the bank. Appreciate you. Turn
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  Speaker 2: on the.
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  Speaker 1: Should all be piliament to Tara edit of One Room.
• 3:35
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• 3:37
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• 3:39
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• 3:42
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