High rents push tenants into buying
By Jamie Morton
Monday Apr 2, 2012
Only slightly more money needed to service a mortgage, report shows
Tenants squeezed by double-digit rental increases are turning to buying their own home as the cost of owning and renting narrows – even though New Zealand houses are rated some of the most unaffordable in the world.
Industry commentators have noted a fresh flurry of interest among first-time buyers, which they put down to rising rents, an improving job market and appealing interest rates.
According to the latest Roost Rent or Buy report, it took the typical Kiwi first-buyer household just slightly more money to service a mortgage on a bottom-range house than it costs to pay a median rent.
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