Skyrocketing house prices are leaving more than just first home buyers with the jitters.
A housing affordability report carried out by interest.co.nz shows it is increasingly difficult to find the money to buy a home. It now takes two average incomes to service a mortgage, compared with 1.2 in April 2002.
Leigh Whiley from the Auckland Property Investors Council says when he first got into property investment 20 years ago he expected a 10% return, but these days it is half that. He says that is a turn off as investors end up losing money and many are holding back from further investment.
However, others must still believe there are profits to be made as Whiley says higher house prices are attracting fresh attention from those new to the market.
