JANUARY 2020 PAPAKURA DISTRICT WWW.INTEREST.CO.NZ /
[email protected] / P. 09 3609670 PAPAKURA DISTRICT HOME LOAN AFFORDABILITY REPORT January 2020 Home loan affordability is a measure of the proportion of take-home pay that is needed to make the mortgage payment for a typical household. If that is less than 40%, then a mortgage is considered ‘affordable’. The following are typical assessments for households at three stages of home ownership. FIRST HOME BUYERS 25-29 YOUNG FAMILY 30-34 OLDER FAMILY 35-39 First home buyers earn a medi- Young family buyers earn medi- Older family buyers earn medi- an income for their age group, an incomes in their age bracket, an incomes in their age brack- and buy a first quartile house and buy a median house in et, and buy a median house in in their area. Both parties work their area. One partner works their area. Both partners work full-time. half-time. full-time. Mortgage payment as a Mortgage payment as a Mortgage payment as a percentage of the take home pay percentage of the take home pay percentage of the take home pay Take Home Take Home Take Home January 31.6% January 31.5% January 15.2% Pay Pay Pay 20 20 20 $1,705.18 $1,478.75 $2,037.73 per Week January 33.3% per Week January 27.6% per Week January 15.3% 19 19 19 January 37.5% January 26.4% January 17.5% 18 18 18 This report estimates how affordable it would be for a couple This report estimates how affordable it would be for a couple This report estimates how affordable it would be for a couple where both are aged 25–29 and are working full time, to buy a with a young family to move up the property ladder and buy their who are both aged 35-39 and working full time, to move up the home at the lower quartile price in Papakura District.