It takes two incomes to pay off standard mortgage - survey
11:25AM Sunday May 20, 2007
The latest batch of real estate figures makes bleak reading for potential homeowners.
Statistics compiled by the website interest.co.nz shows it now takes two average incomes to pay off a standard mortgage.
The survey tracks home affordability against a scale in which 40 per cent of total household income goes on paying the mortgage.
In April 2002, a couple needed 1.2 average incomes to stay on the 40 per cent ratio. By April last year it was 1.7 average incomes. Today it is a full two incomes.
The survey finds that home affordability is falling faster than ever. In the last three months people needed 8.6 per cent more income to avoid being worse off and in the past 12 months 16.3 per cent more income was needed.
The least affordable regions are currently Central Otago Lakes where 2.6 average incomes are required to meet mortgage payments, Auckland 2.5 and Northland 2.1.
The most affordable regions are Southland 1.0 average incomes needed, Otago 14 and Manawatu/Wanganui 1.5.
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