How much is a 20% deposit in your favourite Auckland suburb?

Hand holding magnifying glass

How much are you prepared to drop on a home? We all know it's an arm and a leg and then some at this point, but how much exactly? As Auckland lumbers towards a supply shortage without a definitive end in sight, it' good to take stock of just how much you have to pay to enter the housing market in certain areas.

For investors, it's a little easier as you can already leverage equity. But for first home buyers, you'll have to put together savings and perhaps even use guarantors to make it happen - so how much do you need in certain areas of the Super City?

North Shore

Under current Reserve Bank restrictions, only 10 per cent of owner-occupier home loans can have deposits of less than 20 per cent. For property investment loans, this pushes up: only 5 per cent of lending can be with a deposit of less than 30 per cent.

As of January 31st, QV listed the average value of North Shore property at $1,079,445. This makes a 20 per cent deposit $215,889 - more than most of us are going to make in the next couple of years, really.

Manukau

It isn't as expensive to buy in some other areas of Auckland - take Manukau, for instance. The QV average value there is $792,505 which brings the minimum deposit to $158,501. This is pushed up significantly by Manukau East's average value being above the million dollar mark though. In the central and northwestern areas of Manukau, values skew closer to $600,000.

It's important to remember that these are averages as well, and there will always be real estate either side of these benchmarks - you've just got to put in the hard yards to find it.

Franklin

Franklin had the lowest average value recorded by QV at the end of January, sitting at the comparatively cheap-as-chips level of $584,173. Of course, it's quite a way out, which is the big tradeoff. But with a 20 per cent deposit sitting at $116,834 it could be a less painful entry point for low-income first time buyers.

Whatever your financial setup, it's imperative to get the right mortgage advice. You might want to be an owner-occupier, or perhaps a first time investor that goes on to rent in the city. It's going to depend entirely on your situation - give the team at Squirrel a call to see how you could access the market.