Save over $1 million by buying an apartment instead

 

First-home buyers looking for an ‘in’ in swanky Auckland suburbs, such as Parnell, Epsom, and Takapuna, could save more than NZ$1 million by buying an apartment instead of a residential property, new research from REINZ says.

The median price for apartments in Parnell was NZ$772,500, compared to a residential median price of NZ$2,067,500 – a difference of NZ$1,295,000, REINZ says.

For Epsom, the apartment median price was NZ$865,000, compared to a residential median price of NZ$2,100,000 – a difference of NZ$1,235,000.

For Takapuna, the median price of an apartment is NZ$817,500, compared to a residential median price of NZ$1,870,000 – a difference of NZ$1,052,500.

“For those wanting to gain an entry point into some of Auckland’s top suburbs, considering an apartment rather than a residential property is a much more affordable way of getting into some of these areas,” REINZ Chief Executive Bindi Norwell says in a press release.

Norwell says apartments have come a long way in the past 20 years.

“For first-time buyers, apartments are an excellent way to get a foot on the already expensive Auckland property market.

“Apartments are usually close to public transport and other amenities such as cafes or restaurants, gyms, and other retail outlets. But, most importantly, they’re in a price bracket that people can more realistically actually afford.

“An apartment may not be the property that a young couple end up living in their whole life, but it allows them the chance to build up equity in their apartment and then further down the track if they plan a family, it means that they can then look to make the next step to a larger home with more room,” Norwell says.

Other top Auckland suburbs included:

  • Mt Eden – a saving of NZ$970,500
  • Grey Lynn – a saving of NZ$867,000
  • Freemans Bay – a saving of NZ$750,000
  • Remuera – a saving of NZ$656,400.

Significant savings for first-time buyers can also be found in some of Auckland’s entry-level suburbs such as:

  • East Tamaki – a saving of NZ$527,000
  • Mt Wellington – a saving of NZ$442,500
  • New Lynn – a saving of NZ$280,000
  • Manukau – a saving of NZ$142,500.

The only location in Auckland where apartments weren’t cheaper was Orewa, where the median price for apartments in the area was NZ$11,500 more than a residential property.

First published 27 April 2018

JUNO does not contain financial advice as defined by the Financial Advisers Act 2008. Consult a suitably qualified financial adviser before making investment decisions. This story reflects the views of the contributor only. Content comes from sources that JUNO considers accurate, but we do not guarantee that the content is accurate. Charts are visually indicative only.