CASE STUDY: Will Benny Boy ever buy a house in Auckland?

Breakfast 17/05/2017

Let’s start with the raw stats:

- He’s in his late 20s
- With a fiancé
- Both their careers are Auckland-based
- They’re trying to save to buy a property together in Auckland
- With a combined income of (roughly) 100k

Sounds like a situation a lot of Kiwis are in.

Perhaps naively, Benny Boy wants to believe one day he could own a property in Auckland, the city he loves, the place he knows as home.

I know I could probably buy property in New Plymouth. But what happens to my career?

Benny Boy hasn’t been living under a rock (very often). He knows there’s a housing crisis.

But he’s heard lots of examples in the media. He knows it’s POSSIBLE to be in a situation similar to his AND be a successful Auckland home owner.

However, after attending a finance seminar yesterday, his hopes and dream were crushed.

He left believing he would never be able to buy an Auckland property on his income, unless he had rich parents willing to loan him a big chunk towards the deposit – which he doesn’t.

Or he bought a shared property with a group of friends in somewhere like Hamilton, and then maybe made the commute to work, and over a decade, even two, he could slowly buy and sell property, until he had enough for a deposit in Auckland.

Bit of a rough reality check for Benny Boy. He was pretty damn disillusioned by the time it all finished and he came back up to the George offices.

But we didn't want Benny Boy to pack up his desk and head off to Hamilton too quick. Let's be real here, how's he going to get work? He'd probably run out of gas in Ngaruawahia every second day...

So, we decided to get a second opionon. Malcolm Knight, a mortgage expert, to lay it all on the table… will Benny Boy ever own a house?

Malcolm thinks so… Listen how above.