Why this Auckland first home buyer headed north for a better life

QV Whangarei’s newly appointed Team Manager and Valuer, Tom Ujdur decided to relocate his family from Auckland to the idyllic coastal settlement of Ngunguru.  He talks about why why he thinks it’s a great lifestyle option for other Auckland first home buyers struggling to break into housing market.

From my office in Freeman’s Bay Auckland, I was seconded up to the QV Whangarei office to assist with the three-yearly rating revaluation for the Whangarei District which is currently being completed by QV. After working there for a couple of months valuing coastal property, I was offered the team manager’s role in Whangarei. After discussing it with my fiancée, we decided I should take the job and relocate ourselves North where we would be able to afford to buy, not only our first home, but a quality of life that wasn’t available to us in Auckland.

This year Whangarei’s rating values are being updated as they are every three years. At the previous peak of the market in September 2007 the QV House Price Index shows the average value for the Whangarei District was $326,890.

However following the global financial crisis values decreased as much as 20 to 30% in some areas.

Since then values in the city have been slowly recovering and in particular over the past three years since the last rating revaluation in September 2012.  Back then, the QV House Price Index showed the average value in the Whangarei District was $304,299 which was still below 2007 levels.

Values today have surpassed the previous peak and are sitting at $396,280, in comparison to the Auckland region where the average value is now over $850,000, buying a home in Whangarei is much more affordable.

So when I saw what you could buy comparatively for your money in Whangarei or the nearby coastal suburbs with sea views but within an easy commute to the city, I realised we could have a much better lifestyle if we moved north.

I would highly recommend the area to young first home buyers who can’t afford to buy in Auckland as that was the position my fiancée and I found ourselves in. We are in our 20s and could not afford to buy the lifestyle we wanted in Auckland, so we had a choice, it was either entry level Beachhaven or beach front Ngunguru.

We have now bought our first home in the coastal suburb of Ngunguru which is on the road to Tutakaka. It’s a large 1970s home that fronts the open ocean, sand dunes and sheltered harbour with a huge lawn and all day sun. For what we paid we would not have even been able to buy a home in the most affordable suburb on the North Shore of Auckland where we lived.

I choose Ngunguru because it ticked every box for me.  I am a surfer and love the ocean so to be able to afford a home where the ocean on my door step is a dream-come true that would have not been achievable in Auckland.  Ngunguru is a coastal community with a big heart.   It’s a beautiful 30 minute drive to Whangarei town through native forest and the golden mile of Glenbervie which beats a one hour crawl home I had to do in Auckland traffic, any day of the week. And from a value for money perspective I couldn’t be happier, a feeling I would have not achieved in Auckland.

It’s a very attractive option for those who are able to find work in the area or are flexible about where they work from.  When it comes to jobs in Whangarei, there is Marsden Point Oil Refinery, the Whangarei Port, the Airport, Forestry jobs, the Whangarei District Council and various other government departments as well as farming.

Whangarei also has a steady tourism, retail and hospitality sector and there are some great new restaurants being developed on the harbour side. With recent government incentives looking to draw migration to regional New Zealand hopefully this will help stimulate the economy and grow the area so there are more jobs in future.

Within the city you can still buy a home in the $250,000 to $400,000 range which is way more affordable for first home buyers than any suburb in the Super City region. Up and coming suburbs where values are rising but where you can still purchase in this price range include the central suburb of Morningside and Kamo about 6kms north of the city both suburbs offer solid homes on decent sized sections with shops, schools and public transport within easy walking distance. 

In the coastal areas: Tutukaka coast, Matapouri Bay, Whangarei heads, Parua Bay, One Tree Point, Ruakaka and Waipu are all popular, both with people making a total relocation, and with the revival of the holiday home market.

Over the past three months the booming Auckland market has led to an increase in interest and activity from Auckland buyers in the Whangarei market, including from myself.

Many who are choosing to relocate are not first home buyers but rather those who owned a home in Auckland but realised they could sell it and buy a nicer property in Whangarei or other surrounding areas such as Waipu. Many in this category are retirees wanting to take advantage of lower prices and to free up some cash for their retirement.  Some people are even commuting to Auckland from lifestyle properties in coastal suburbs such as Mangawhai which is closer to Auckland.

In general the coastal pockets of the Whangarei District have seen an increase in demand over the past year, especially over the past few months as summer draws closer. It’s also evident this is a direct effect to high achieved property values in Auckland with families looking to lock in their own slice of coastal paradise for the future.

Agents report an increase in Aucklanders flooding the market with a revival of the bach market in areas like Tutukaka coast and Matapouri Bay. Whangarei heads has been in hot demand also with Parua Bay and nearby lifestyle blocks also increasing in value. The market sits at the point where the bulk of the desirable properties that have been sitting on the market for an extended period of time are now sold with agents reporting a shift in supply and demand pendulum. The demand has begun to push values in the positive direction with the outlook also looking positive.

If you have been thinking of buying in the coastal areas of Whangarei you best be quick! There is still some good buying out there if you’re willing to venture out to those slightly more remote areas. The gains in value in the coastal pockets have been steady increasing over the past couple of years. With more buyers in the market and an increase in demand that’s beginning to exceed supply.