July 02, 2024
New loan ratios prompt cheap house search
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Now the Reserve Bank has changed debt to income ratios, it may be time to buy … in Kawerau.
That’s the tip from Vanessa Williams of Real Estate dot co fot nz for whanau wanting to step onto the property ladder.
She says the ratio of six times household income is so people don’t take on debt they can’t service – and it’s based on the pre-tax earnings of everyone in the household.
The average household income in New Zealand is about $126,000 – which at the new levels could be enough to buy a home.
“The Reserve Bank has modelled this on an average of what people are seeing right across the motu but the beautiful district of Kawerau in the mighty Bay of Plenty, they have the most cost-effective are where you only need $60,000 in your total househld income to purchase a home,” Ms Williams says.
She says New Zealand still has one of the highest home ownership rates in the world.