Home dream closer for first-time buyers

First-time home buyers are expected to rush into the market at the end of the year as falling interest rates and property prices combine to kick-start the sluggish market.

A report on economic commentator Bernard Hickey's interest.co.nz website says home affordability hit a four-year high last month. At the current rate of improvement, housing is likely to be broadly affordable again for most buyers towards the end of the year, the report says.

Young Australians are already returning to the market, helped by $14,000 Government grants.

Here, the Government's shared equity scheme is expected to help up to 700 applicants during a two-year $35 million trial that started last July.

The scheme allows people with a household income of $55,000-$85,000 to borrow between 5 and 30 per cent of the value of their home.

To read the full NZ Herald article click here

Posted: 25 Jan 2009

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