Nz affordability boost

Property affordability in New Zealand has reached a five year high, according to a survey...

A new survey by a monthly survey by interest.co.nz found that housing affordability improved to its best level in five years in January because of a fall in house prices and sharp reductions in mortgage interest costs,

The website's editor Bernard Hickey said it was predicting housing would be affordable again for most New Zealanders by the end of 2009, adding: "All of the trends are converging to make housing much more affordable for both families and single income home buyers.

House prices are sliding, interest rates have fallen fast, taxes are set to be cut again and incomes are rising, even if much more slowly. These have all combined to reduce the proportion of after tax income needed to service mortgages on median homes".

Source: www.nzherald.co.nz