Key Takeaways:
- Hatepe in Taupō is the leading mortgage-free hotspot, with 96% of properties debt-free.
- Clendon Park in South Auckland is the most indebted suburb, with 91% of homes still carrying a mortgage.
- Rural and coastal areas have higher mortgage-free rates, while urban areas like Auckland and Wellington remain heavily mortgaged.
- Becoming mortgage-free is achievable with discipline and a solid plan, and it’s essential to think ahead and consider individual financial goals.
Introduction to Mortgage-Free Hotspots
New Zealand’s mortgage-free hotspots have been revealed, with new data showing the suburbs where buyers are most likely to have paid off their home loans. According to figures from OneRoof’s data partner, Valocity, most households own their homes outright in rural and coastal communities, while mortgage debt remains the norm for major urban suburbs. The data reveals Hatepe, in Taupō, as the country’s leading mortgage-free hotspot, with 96% of its 102 properties held without an active mortgage.
Mortgage-Free Hotspots
Hatepe, a suburb in Taupō, has been identified as the leading mortgage-free hotspot, with 96% of its properties debt-free. Other suburbs with high mortgage-free rates include Gisborne’s Tikitiki, Waipiro, and Te Araroa, as well as Panguru, Parekura Bay, and Te Tu Mangonui in the Far North. These areas have been found to have more than 80% of their homes paid off. Additionally, Punga Cove in Marlborough, Opoutere in Thames-Coromandel, and Arthur’s Pass National Park also have high mortgage-free rates.
Most Indebted Suburbs
In contrast, the most indebted suburbs are located in urban areas, with Clendon Park in South Auckland being the most indebted, with 91% of its 1716 properties still carrying a mortgage. Other indebted regions include Auckland, Wellington, and Manawatu-Whanganui, where buyers still owe more than 80% of their mortgages. The high cost of living and expensive housing market in these areas contribute to the high levels of mortgage debt.
Expert Insights
Matt Hooper, a senior adviser at financial consultants FINSOL, notes that Taupō is an interesting market, with many out-of-town buyers owning holiday homes in the area. Hooper emphasizes the importance of discipline and a solid plan in becoming mortgage-free, stating that it’s achievable if buyers are willing to work towards it. He also highlights the need to think ahead and consider individual financial goals, such as retirement and superannuation.
Urban vs. Rural Areas
The data reveals a significant difference in mortgage-free rates between urban and rural areas. Rural and coastal communities tend to have higher mortgage-free rates, while urban areas like Auckland and Wellington remain heavily mortgaged. Valocity senior research analyst Wayne Shum notes that this is not surprising, given the higher cost of housing in urban areas. However, he also points out that some properties in rural areas, such as those in the Thames-Coromandel region, are often generational and have been paid off over time.
Becoming Mortgage-Free
Becoming mortgage-free is a goal for many Kiwis, and it’s essential to have a plan in place to achieve it. Hooper suggests that small and consistent contributions can make a significant difference, and it’s crucial to get into the habit of paying more from the start. Additionally, thinking ahead and considering individual financial goals, such as retirement and superannuation, is vital. With discipline and a solid plan, becoming mortgage-free is achievable, and it’s essential to adjust expectations and focus on what’s realistic.