Where buyers can get the biggest properties for least dollars

First home buyers who set their sights north of Auckland can get a lot more house for their dollars.

OneRoof and its data partner Valocity examined the median values and land size of properties bought by first home buyers, investors and movers across New Zealand to see which locations offer the best value.

The figures show the current median values of properties bought by first home buyers in the region ranges from $312,500 in the Far North to $450,000 in Whangarei, among the lowest in the country.

First home buyers in Northland also benefit from getting bigger plots. The median size of properties bought by first home buyers in the Far North is 1153sq m; in Whangarei it's 824sq m.

However, OneRoof found it’s almost as expensive to move up the property ladder in Northland as it is in Auckland and Queenstown. The difference between a first home and a second home in Whangarei is $135,000 and in the Far North it's $212,500.

Daniel Ochse, of One Agency Kerikeri, says that Waipapa on the semi-rural fringe of Kerikeri properties of 3000 to 5000 sq m is attracting movers from Auckland, Tauranga and Hamilton who are either retiring, or planning to set up their own business away from the rat-race.

That means the suburb is no longer the first home buyers' bargain side of town. His two most recently sales there were for $900,000 and $980,000, and he says that there is nothing much available for under $800,000 now. A current listing for $595,000 has generated huge interest, but the value is in the 5000 sq m of land, as the house is only a simple relocatable.

Haruru on the other side of Kerikeri, on the way to Paihia, has cheaper houses going for around $460,000.

Mortgage broker Sarah Curtis, who relocated from Auckland three years ago, says that the first home buyer focus has shifted to fringe towns like Okaihau, Kaio and even Kaikohe where properties are still available for under $400,000 that qualifies buyers for the HomeStart grant. Now prices in Kerikeri have blown over that limit.

She says there's been a remarkable change recently, as new home owners build a pride in these towns, there are now jobs and increasingly vibrant life.

"Kawakawa has just gone nuts," she says. "It's self perpetuating, there's a real buzz, these towns are much more community focused, stuff is happening, people are proud and stoked that new people want to live there."

The price gap between a first home and a second or third home in Queenstown is $150,000, and $145,000 in Wellington, while gap in Auckland is $215,000.

The most expensive city in which to climb the property ladder was Auckland, where the median value of first home buyers properties is $770,000 and $985,000 for mover properties.

OneRoof editor Owen Vaughan said: “While the leap from first home to second home in the Far North and Whangarei is big, the locations offer buyer groups more value for money than found in bigger housing markets elsewhere in New Zealand: the cost per square metre for first home buyers in Whangarei was $535/sqm and $546/sqm for movers, while in the Far North the cost is $271/sq m and $160/sq m and that gives you a much bigger piece of land.

“This was well below the land cost per square metre for buyers in Auckland, where first homes typically cost $1397/sqm and mover properties cost $1588/sqm.”

Mortgage broker Curtis says that new home builds that come under the HomeStart ceiling of $500,000 are still possible in Northland, as land can be found for $250,000 and a nice house for another $250,000 is easily doable.

Vaughan said the big difference in the price of a first home and a second home in Whangarei and the Far North was due to movers targeting bigger, better quality houses in higher value suburbs and a bigger selection of lifestyle properties. “The same could be said for the other second tier housing markets, such as Napier, Nelson, New Plymouth, Palmertson North and Rotorua, where the gap between first home buyer homes and mover homes ranged between $110,000 and $157,500,” he said.

“The fact that movers pay less per square metre than first home buyers suggests Whangarei and the Far North offer good value to those already on the property ladder – and that bigger sections can work out to be more cost-effective than the smaller sized sections offered by entry-level properties.”

Of the other major metros, the cost of moving up the property ladder is smallest in Dunedin, where the price gap between homes being bought by those new to the market and those being bought by existing homeowners is $95,000.

The price gap was a fraction higher in Christchurch ($105,000) and climbed to $145,000 for Hamilton and Wellington. Nationally, the median gap between first home buyer properties and mover properties was $115,000.

Vaughan said: "The most expensive place to be a first home buyer and a mover was Queenstown, where the median value of first home buyer properties was $840,000 and the median value of a move home was $990,000.

"However, when we looked at the median area of the properties first home buyers and movers were purchasing and worked out what both groups were paying per square metre, the rankings changed – and Wellington took the crown.

"Although the cost of buying a home in Wellington is considerably lower for both groups, you don't get much bang for your buck in the capital."

The data showed the biggest competition facing first home buyers was investors, with both groups targeting similarly priced and similarly sized properties.

James Wilson, valuation director at Valocity, said: "Across all 65 territorial authorities examined, it was interesting to observe that the difference in the median value of homes bought by first home buyers and those bought by investors was relatively insignificant, at $15,000.

"Furthermore, the difference in floor area for by first home buyer homes and investor homes was only 3sqm; and the difference in land area between the two groups was 21sqm."

Wilson said the numbers backed up anecdotal evidence that first home buyers and investors were seeking out similar properties, but with investors increasingly sitting on the side-lines, first home buyers were now able to plug gaps in the market.

The median value of properties targeted by investors in Whangarei was $5000 lower than the median value of homes bought by first home buyers.

“Interestingly, the areas with the largest differences in median values for first home buyer and investor properties were all smaller regional locations: Hurunui, Kaipara, Waipa, Waikato and Opotiki,” says Wilson.

“This appears to be a result of the fact that first home buyers in these locations are targeting the ‘very first rung on the ladder’, which may be housing stock that needs improvements or may have smaller layouts such as one or two bedrooms.

“Whereas investors in these areas are seeking to maximise returns by targeting higher value property in more desirable locations."