Wannabe homeowners from the North Island are heading to Southland’s small towns increasing numbers in a bid to be mortgage-free.
One couple from the Waikato recently bought a lifestyle block in Gore sight-unseen while buyers from Auckland used the money they had saved for a deposit to buy a house outright in Lumsden.
First-home buyers are discovering there’s much more to the area, with agents telling OneRoof that Gore and its neighbours offered affordable houses, employment opportunities, and great restaurants.
They said that houses usually traded for around $400,000, a massive drawcard for young couples and families struggling to get on the property ladder in the pricier cities.
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Harcourts agent Zac Andrews said he recently sold a house on Dacia Street in Lumsden, which is 40 minutes north of Gore, to a couple from Auckland. “They were like, ‘This was going to be our deposit on a house we missed out on’. They were stoked.”
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Most of the North Island buyers heading to his patch were younger couples in their early 20s. “It’s the first-home buyers who are sick of getting beaten by investors.”
His best pick of houses for first-home buyers he was selling was a three-bedroom, one-bathroom home at 17 Thomas Street and another at 31 Elizabeth Street, both affordable entry-level homes that would suit first-home buyers, he said. Both were on 800sqm sections.
A Waikato couple purchased an entry-level lifestyle property on Seaward Road, in Edendale, for $685,000 sight unseen. Photo / Supplied
A lifestyle property at 118 McIllwraith Road, in Mataura, Gore has a price indication of around $600,000. Photo / Supplied.
Andrews told OneRoof the phenomenon was not a new one. North Islanders had been moving south to get more bang for their buck since he started in real estate.
Gore, he said, had everything people needed. “There’s probably more petrol stations and food outlets per capita than anywhere else.
“I grew up in Winton so if you ever needed anything when you were there you had to drive to Invercargill so Gore sort of feels like it’s got everything you need – you don’t have to go anywhere to get it.”
Bayleys agent Julie Mitchell had also noticed the spike in interest from North Islanders.
She recently sold a lifestyle property on Seaward Road, in Edendale, about 20 minutes south of Gore, to a Waikato couple for $685,000. They bought it sight unseen. “They did their final inspection [which was the first time they saw it] and their things arrived the next day,” Mitchell told OneRoof.
Mitchell said the pair had moved for lifestyle and job opportunities. “They were absolutely delighted when they got here,” she said.
“It’s the best place in the south. It’s quite well-known that we punch well above our weight with our facilities. We’ve got a great arts and heritage precinct, we’ve got a great culture here with music and we have several festivals in the area.”
A 1930s property on Elizabeth Street is being marketed at first-home buyers and downsizers. Photo / Supplied
She was also working with a Northland couple who were looking to buy lifestyle property for around $500,000-$700,000. One such property she has for sale for around $600,000 is a three-bedroom, one-bathroom home at 118 McIllwraith Road, in Mataura, Gore. “That Kiwi dream of a lifestyle property is achievable here and probably not in the north.”
She was also fielding enquiries from younger families, particularly in Tauranga, who were looking at buying their second home and had worked out that if they moved down then they could afford to live on one income for a while.
“They are getting off the wheel and getting out of the rat race. In many cases, they’ve got some capital gain and they can probably almost buy their second home here debt-free,” she said.
A home that would suit second-home buyers was a substantial five-bedroom, two-bathroom home at 35 Thomas Street, in Gore, which is seeking enquiry over $500,000. “They could come down here with $500,000 and buy a three-bedroom home and be mortgage-free,” Mitchell said.
A three-bedroom cottage on Dale Crescent, in Gore, has an asking price of $399,000. Photo / Supplied
Ray White Gore principal Nicole Cronin said there was a lot going for Gore, citing the talk of Fonterra looking to expand its Edendale plant, and Mercury Energy’s development of a 46-turbine wind farm, which is set to be the biggest in the South Island.
Cronin had recently fielded enquiries from a Tauranga couple and a Wellington family – both who were moving for work and to buy their first home.
They could buy a house such as a three-bedroom, one-bathroom home at 107 Robertson Street with an asking price of $409,000 or a three-bedroom cottage at 11 Dale Crescent for $399,000 for almost half the price, but still earn the same amount and not be stuck in traffic, she said.
- Click here to find more properties for sale in Gore
