by The Landlord
Research commissioned by Auckland real estate agency Barfoot and Thompson found 47% of people who bought their first home in the last five years received some form of financial assistance from a family member.
That’s up from 31% pre-2010 and 13% in 1970.
“The research supports what our salespeople have been reporting, with a greater number of first-home buyers visiting open homes with their family and having financial assistance, usually from their parents, to complete the purchase,” said Barfoot and Thompson managing director Peter Thompson.
He said that meant sellers might need to make their properties appeal to more than one generation of buyer.
Those getting a helping hand from family over recent years were primarily being given money as a gift (44%) or a loan (34%).
While purchasing a standalone house with a partner remains most common, the research showed some first-home buyers were finding other ways of buying.
“Lone buyers, investors and apartment dwellers have become more prominent in the first-home buyer statistics over recent years,” said Thompson.
The number of first-home buyers purchasing with a partner represented just 63% of those who purchased their first home in the last five years, while the number of people purchasing alone sat at 23% and those purchasing with family rose to 13%.
Before 1970, 94% of first-home purchases were with partners or spouses.
“Over time we’ve also seen more people buy their first property as an investment, rather than a home to live in themselves,” Thompson said.
Since 2010, 11% of first-time buyers were purchasing an investment, which Thompson said was a big increase since 2000.
“For many this can be a means of getting on the ladder while they live elsewhere for lifestyle or work reasons.”
Another small group are turning to apartments rather than houses, representing 8% of purchases since 2010. “This is partly down to availability of stock but equally for financial and lifestyle reasons – apartments are generally more affordable and centrally located.”
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