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What was in the NZ budget for the property market?

By Craig Catley

Budget time: a veritable hurricane of datasets, overblown press releases and benefits lost in the media storm. It's enough to make your head spin, but once you look past the fanfare you can see a few key measures that should help out people in North Shore property.

Whether you're planning to sell in the next few years or are renting and plotting first home purchase, here's what you need to know.

1. Better schools

Buying property around a good school, or within a certain catchment, is crucial for mum and dad buyers. The Grammar Zone is Auckland's most prominent highlight, but real estate on the North Shore can be very sought-after if it's in the Westlake zones or around Milford. 

These schools, and others, are set to improve courtesy of the 2017 Budget. A media release from Nikki Kaye details a $456.5 million investment in school property around the country, including 305 new classrooms and special schools. 

More funding for schools could incite demand for properties near them.

Kaye said they would add nine new schools to Auckland, increasing the number of placements by 21,000 in the next four years. It could see a lot more demand for real estate near these new schools, as well as existing ones that get an expansion. 

2. More housing development

As we have discussed previously, Auckland needs a lot of housing to keep pace with demand. In the 2017 Budget, the government went some way to addressing this. Amy Adams announced $100 million in capital funding that would go towards making Crown land available for future development, creating 1,200 new homes. 

This forms part of a wider commitment to create 34,000 new properties across Auckland in the next ten years. 

"As part of the programme, the Government has committed to 20 per cent of the homes being available for social housing and a further 20 per cent priced as affordable – defined as no more than the KiwiSaver HomeStart cap," Adams said. 

Even for those that have struggled with Auckland's rising prices, there could be some sharp relief on the way. 

3. Kids learning about money

Given how important home loans and financial planning are for our adult lives, doesn't it seem a little off that we don't teach them in schools? According to another Budget announcement, those days are a thing of the past. It is committing $10.2 million over four years with the specific goal of improving young Kiwis' financial capabilities – something which could go a long way to helping the next generation buy property. 

How will better financial capability education aid the housing market?

"Teaching these concepts to our kids before they enter the workforce empowers them to make smart financial decisions and effectively engage with financial products," stated Minister for Commerce and Consumer Affairs Jacqui Dean. 

"Once fully operational, over 90,000 Kiwi children a year will receive financial education in primary and secondary schools throughout New Zealand." 

Will it impact North Shore property?

While these changes are by no means the silver bullet that housing affordability needs, they go some way to helping the situation for New Zealanders in a wide range of roles. Buyers have more schools to look at buying near for their children, while those kids will learn the skills they need to succeed financially from a younger age. 

Finally, any increase to housing supply is a good thing – even 1,200 homes will help anyone who isn't sure where they can buy on the North Shore or around Auckland in general. 

Want to find out more about where the market stands, or are thinking about taking the next step? Make sure you're working with a team that has your back – call the team at Ray White Takapuna today. 

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