On House Hunt we're tracking the highs... and lows.... It's just too expensive. ...of ordinary Kiwis across the country... Getting a house is very important. ...as they hunt for their first home in one of the most overpriced markets in the Western world. This time, death metaller Courtney and his crew get a reality check as they meet their bank manager. Do you have any other options where, perhaps, you might be able to get some gifting? Not at this stage, no. Yep. OK. It's, um... And newlyweds Joe and Maria are treated to the house tour of Hastings. This is called the sit-down test. (GROANS) Ooh, that's low. CHAIR CRACKS Copyright Able 2015 Hastings sits on the fertile plains of the Hawke's Bay region, an area synonymous with fruit and wine, with its blooming orchards and picture-postcard pastures. Tourism is growing here as others cotton on to everything it has to offer, but recent job losses have hit the area hard. Like many other regions, it's struggling while Auckland booms, and the market here is actually in decline. The silver lining to this is you can still buy a house for a modest price. Looking for their first home here, with a budget of $240,000, are childhood sweethearts Joe and Maria. We met when I was 11. Joe, how old would you have been? BOTH: 13. 14, yeah. I had always had a bit of a crush on him. I was the good little Christian girl, and he was the` the rebel. As the eldest son of a preacher man, Joe was maybe always destined to rebel, but he's clearly on his way back to the straight and narrow. These two lovebirds, and songbirds, were married before they even turned 25. Our reception was actually out here in the garden. Yeah, it was done on the cheap, but... (LAUGHS) it was beautiful. Since the wedding, there's been a lot of doing things on the cheap for Joe and Maria, including bunking back home with Joe's mum and dad. But being back in the kid's room is becoming a tad restrictive. Whatcha playing? Coming back again after being married is... Interesting. ...also getting really hard. As we've been here for longer and longer, it's getting a little bit harder with having people in our face all the time, and just wanting our own place. We just want to get out. (LAUGHS) Joe, Maria, Joe's little sister, Lily, and two cats is a houseful. Mum and Dad may well have had a gutsful too. Are you two likely to even be in for dinner? What's gonna be in it? Yeah. I won't tell you. (LAUGHS) Luckily, these two have been saving hard for a deposit. Fearlessly independent Joe has been working since he was 15 and sees home ownership as the next step, but Maria has her own reasons for wanting somewhere to call their own. My dad had left when I was 8. All my life, lived in rentals with my mum. This is gonna look awesome in a new house. Um, we've been ferried around into different houses that are just dark and damp, and they're not nice to live in, and there's only so much you can do in a rental, and I'd love to be able to` if I wanna paint that wall green, I'm gonna paint that wall green. And Joe had better get his head around Maria's dream home, because it's a tad specific. One day, we will have the perfect house that has the white picket fence and the red door. Weatherboard and` Real traditional. Yeah. Yeah. The first on their list to view is not far from Mum and Dad's place in the suburb of Akina. This affordable little starter has two bedrooms plus a study, with an open-plan living area and an updated kitchen. There's an asking price of $225,000. So how close will it come to Maria's rose-tinted dream? There's no red door. (LAUGHS) No red door. You've got your white picket fence though. At this price, they can afford a pot of red paint for Maria's door. Nice to see you. You too. Local agent Ian Lancaster shows them around. Ooh, very nice. This house has had new carpets put in on Monday, so` Very nice. ...brand new carpets. You're the first people on them. This carpet's amazing. Open-plan living, it's` I like that. Actually nice and bright in here. Yeah, very bright. That's another box ticked off for Maria ` free-flowing, Hawke's Bay sunshine. Nice. Not too much lawn to mow, babe. (LAUGHS) No. The outdoor area is compact, but has plenty of potential. You'd probably actually bring the deck out more and have more of an entertainment area. Barbeque. There's room for barbeques and outdoor entertaining, but what about those indoor parties? Very nice. Nice size. Not gonna get cluttered in here. No, and lots of bench space for cooking. Yeah. There are just two bedrooms in this house, and Joe and Maria are worried they'll be on the small side. Ooh, it's a lot bigger than I thought. But that's only the beginning of the surprises. Maria has realised something more unexpected. My mum and I actually used to clean for the lady who lived here, funnily enough. But I didn't recognise it in the photos, cos the new furnishings make it look so fancy. (LAUGHS) Come full circle. Yeah, yeah. The idea of owning the house she used to clean is taking Maria to the next level, but she may have to negotiate the study space. This must be the office/nursery. Hideaway. Games room. Baby's room. Whatever. (LAUGHS) Well, at least there's space to make babies if they want to. And the big bedroom. With a wardrobe. With a wardrobe. Small wardrobe. There's more. That's got two beams for you. Beautiful and bright. It's perfect. Maria's been sold since the picket fence, but agent Ian still has some ground to cover with Joe. So, it's actually got a door for the carport end and another one going out through to the garden. Surely the shed will tip him over. Nice shed. Oh, that'll be handy. But it's Maria that's the DIY-handy one in this relationship. Room for DIY? Room for DIY, exactly. She makes her own furniture, and this looks like the perfect spot for it. So what's` what were your overall impressions of the property? Not huge amounts of land, but, um, it'd be all right for a first home. Yeah. It's a really nice house. I quite like it a lot. Yeah, well, it's only been on the market about a week now, and we've had a significant num` a number of viewings. Yeah. So, yeah. It'll be get in quick. Yeah, good ones always go fast. JOE AND MARIA: Yeah. Joe and Maria know that if they're keen, they'll have to get on to it. Although prices are down here, so is the housing stock, so when a good one hits the market it flies out the door fast. Up in Auckland, fast doesn't even begin to describe it. Metal siblings Courtney and Tom, their girlfriends, Bex and Inez, and younger sister Natalie are all combining their incomes in a bid to pull together and buy a house. I actually saw mean, like, five-bedroom homes, and they were like` like, 500,000. But five adults need a lot of space, and finding space in Auckland is about as likely as finding a heavy metaller without tattoos. After an enthusiastic start in the West Auckland suburb of Glen Eden,... You can make this a small, little gaming room. (LAUGHS) ...younger sister Natalie got cold feet at the idea of living with her brothers. And then you can have this one, Nat. LAUGHTER But after some time to think, she's realised it's buy as a group or don't buy at all, so to help the group get over the line with the bank, Natalie's prepared to live in long enough to access her KiwiSaver home grant. With KiwiSaver, you have to live there for six months. If there's enough space for everybody, and I'm happy there, I'd live there longer. But at this stage, I'd just live there the six months and then find a place myself. Back together, the group are finally meeting with the bank to apply for pre-approval on a mortgage. At least, if Courtney ever gets here. He'll be late to everything. Like every frontman keeps the audience waiting. Hey, guys. Sorry. Nice and early (!) Yeah, yeah. Nice to meet you. Mortgage broker Imran Mohammed is used to dealing with all kinds of family arrangements, though this might be a new one even for him. Do you have any children? ALL: No. Oh, OK. No children. High five! ALL LAUGH What's the plans in terms of who's going to be living there? We all will be living there to begin with. Um, Natalie has expressed that she would probably move out... Yep. ...after the first six months, for withdrawal. In terms of a house, you're looking at a standard residential house, maybe four to five bedroom? ALL AGREE Yeah, OK. I know you're probably wanting to find out how much you could borrow, > but if there was a figure in mind that you had and you thought, 'Well, this is the amount that we probably wouldn't go over.' We were looking at around the 450 mark, but I think we all` we all kinda discussed that and` and realised that for a little bit more, we can get, um... A lot more. > Yeah. A lot more house so we` we'll be comfortable, to make this work. Yeah. The group are hoping that the bank might let them push their budget up a bit, but with tough lending criteria in place, will even five incomes be enough to get a mortgage approved? BNZ want to help you be good with your home loan, and it starts with a great rate ` 4.69% fixed for two years. But hurry ` this offer is only for a limited time. BNZ ` be good with money. In Auckland, Courtney and Co. are meeting with Imran Mohammed to get the thumbs up on a mortgage. What I've calculated here, between the five of you guys, you guys have got, you know, > quite a really good KiwiSaver deposit here, so it's $50,300 in total between the five of you. So that's really really good. But there's a problem. What sort of other deposit do you have for this venture here? > Do you have any other cash savings that you'd be wanting to put in through for this deposit? > Not at this stage, no` Yeah, OK. Despite all of them putting everything they have into the pot, they can still only muster a 10% deposit on a $500,000 house, and they're unlikely to get the sign-off unless they can find 20%. And there's more bad news. How a KiwiSaver is used is you` you need to use KiwiSaver towards your purchase, rather than actually coming up with an actual deposit up front. So you actually get it on settlement day. The sting in the tail is at the time of their application, KiwiSaver funds could only be drawn down after a sale, leaving Courtney and Co. to find a cash deposit somewhere else. Do you have any other options where, perhaps, you might be able to get some gifting from any family or...? No. We have spoken to our parents, but we'd` we would like to... ...avoid. Yeah. > Yeah. Fair enough, yeah. > After a sobering meeting, they leave their details for Imran to crunch the numbers. While they wait for the verdict, they're taking a different tack. Realising their budget is more likely to go down than up, they've gone outer rim. House on a quarter-acre section. Five bedroom, two bathroom. Now they're searching for property in Waiuku, an hour out of the city, even without traffic. Country towns within striking range of the city have become the last bastion for Auckland refugees, and the group are wondering if the lower prices will make the commute worthwhile. They might be ready for Waiuku, but is Waiuku ready for them? HAIR METAL MUSIC Courtney's found a three-bedroom home on a supersized section. It needs work, but builder brother Tom can add value, capitalising on the country feel of the place. Best of all, the price is a very rural $439,000. Get inside, peasants. ALL LAUGH Ooh, it's nice and warm in here. You instantly notice the fireplace. Yeah. Oh, that's cosy. This lounge is really nice. I like the beams. Like your beams. (LAUGHS) So far, so spacious. Even Natalie might be seeing some potential peace and quiet. I like it. I don't like this kitchen, though. I agree with you on that. It's rather dated, but that's good, because we can rip it out, and we can do whatever we want, you know? Yeah. Make it how we like it. There are plenty of possibilities here, but Tom's smile sinks further into his beard when he sees the bedrooms. Surprisingly small for a master bedroom, eh? Mm, it's not too bad. The group knows their situation is unusual, and most houses in their range are gonna be a bit of a tight squeeze. The question is, how tight? The toilet's in the bathroom as well. It's not a separate` Yeah, yeah. That is a pain. The other bedrooms are even smaller. I don't mind this in this one too much. We'd be all in each other's` Mm. ...pockets and... That's true. Maybe the outdoor space will offer up some options. I wanna check out the garage to see if we can turn that into a sleep-out. And how hard is it to insulate and everything, Tom, and line it? It's got power. Well, it wouldn't be too hard at all. It could be ideal. Yeah. The potential to turn the garage into a sleep-out has definitely lifted the mood, and there's even more to cluck about. Chickens. Oh, wow, chickens. Hello. Chooky-chooks. There's no question the outdoor space makes this house a serious contender. Look how cute this is. That's your house. (LAUGHS) Yes! But can they manage the asking price? It's all down to the bank. In Hastings, newlywed youngsters Joe and Maria are also looking further afield. Maria loved the tidy two beddie they saw in Akina, but Joe thinks they could get more space for their money out in the suburb of Mayfair. It's not their ideal area, but will the extra space be worth it? This three-bedroom home is as neat as a pin, with generous proportions and a two-car garage, with a CV of $230,000. Joe's a bit nervous about this side of town. Unemployment and low wages in Hastings have been a recipe for gang problems. Agent Chris Gilford is on hand to answer the uncomfortable questions. Have there`? Has there been any problems at all? This street, Nicholson St, being semi-rural, it's removed from that. So, sure, you know, you may have to drive through, um, some of the` the areas, um, but no, it's pretty good. With the worries put to one side for now, it's time to explore the place. Very nice. Lots of space. Nice space, hmm. Interesting feature wall behind the... BOTH: ...fireplace. This house has the quirky character of its 1980s era. Nice. Dining area. It's very cute, isn't it? It's nice. Let's have a look at the kitchen. Joe and Maria might have missed the '80s, but there's no way they can miss the kitchen. Far out. Big kitchen. Look at all this space. Lots of space for activities. WHISPERS: Look at it all. Pantry. Not even touching anything. And the bathroom offers even more to sing about. # There's a bath. # You can have your baths as well as your shower. The space just keeps on coming. Oh, wow. Big bedroom. That's a very big bedroom. Definitely space for another TV. (LAUGHS) TV on the wall. Door out` to outside. With a little deck even. Nice-sized deck. BOTH SNIGGER I can't keep a straight face while saying that. You had to say that that way, didn't you? Joe's even seeing space for when the honeymoon wears off. We keep the two single beds for when want to have our own separate beds. (LAUGHS) OK, perfect. That'll be perfect. Until then, there's always the nursery to think about. This is a cute little room. It's a bit small with a big bed, but if you put a little bed in here, it'd be all right. It's got a cupboard. Wardrobe's always a bonus. So what about the outdoors? Woody. Oh, Woody. (LAUGHS) They may not be quite ready for the garden gnome phase of life just yet, but could all this space swing the deal? Far out, there's some storage and a half in here. This would be the DIY central. The house is very big, actually. And the view is amazing, and the house is beautiful. Joe and Maria leave Mayfair buzzing about the potential, but before they get carried away, they get a call from their mortgage broker, and he sounds serious. Gidday, guys. How's it going? Mortgage broker Rob Morgan has been helping these first-timers get their finances together. But after collating all the information, he's got an unwelcome update. With your financial situation as it is right now, so the levels that we can get to, we're not in the ballpark that we initially hoped. OK. The... two things that are impacting on it are the fact that, Maria, your income's casual income at the moment, and until you've been doing that for 12 months, the banks won't use it. < With that and the` the personal loan... Joe took out a personal loan for a car a few years ago, but it might have been a case of buy in haste, repent at leisure. I want to make sure we can actually get a loan approved. That's the first thing. I do believe if we can do something about that personal loan, we are going to be in a position where we can actually move forward and get you into a position where you can actually borrow... OK. ...something at a level you're gonna be comfortable with. That'd be good, yeah. It seems what was easy credit turned out to be a tough lesson. Small loans are simple to get but hard to get rid of, and that can make banks very nervous when it comes to securing a mortgage. Can Joe and Maria stay in the game? TENSE MUSIC METAL MUSIC In Auckland, there's been some news for Courtney and Co, and now they really have something to scream about. Despite their five incomes and five KiwiSaver accounts, the bank has turned them down for a mortgage. There's a lot that wasn't made clear to me until going and meeting with the` the bank manager. Cos they say 10%, um, deposit is cool, you know, when you look on the websites, and you're talking to them on the phone, and` but then you go and see them, and they still prefer you to have the 20% deposit. Yeah, well it's just` It was just a tease, really. BOTH LAUGH That's what it was. For Courtney and family, it's the end of the road for now, but with the recent changes to the way KiwiSaver works, they're keeping the hope alive. We're still looking. With the rules that have just changed around KiwiSaver being able to use as your` your deposit, we're considering maybe we just` we reapply elsewhere to a few other banks. The group are in that no man's land so familiar to first-home buyers in Auckland ` stuck there for the jobs, but unable to buy a house to go home to. Courtney does one last shout out to vendors in this mad mosh pit of a market. Don't sell to overseas investors, please. BOTH CHUCKLE Yeah. If only there were more jobs and a bigger metal scene for Courtney's lot in the Hawke's Bay. Joe and Maria's budget has been dropped to $170,000, due to Joe's unpaid personal loan, but believe it or not, that's still enough to look at homes in Hastings. Back in the suburb of Akina, close to Mum and Dad, this art deco beauty in Dufferin St is tidy, has two bedrooms, a DIY shed for Maria and a decent yard. With a registered valuation of $170,000, it's enough to make an Aucklander cry. Oh, it's a cute little house. Very cute. Little bit dinky. Where's the front door? (LAUGHS) Around at the unorthodox side door, agent Bernie Keenan is keen to meet them. Hi, Maria. Nice to meet you. Hi, nice to meet you. Come on through. Cheers. Oh, this is the lounge. Quite nice. I like the shelves. The lounge is compact but has personality... The kitchen. ...and agent Bernie is quick to point out that the kitchen does, too. So, guys, this is actually a` a blackboard. Oh, very cool. And you can actually write on that. Yeah, write your, uh, message of the day. You can write my grocery list. Interesting colour of the bench. For a compact kitchen, it's actually really nice. I can do the dishes, and I can watch the children. How many children do you wanna have? 'Children' doesn't necessarily mean more than two. (CHUCKLES) Before they plan too many kids, they'd better make sure there's somewhere to put them. Oh, very nice. Nice bedroom. Very nice. Nice and light. I like these curtains. (LAUGHS) That's a fairly huge-looking wardrobe. That would be Maria's wardrobe. It's almost like Bernie did a practice run before they turned up. So come on, guys. Come and have a look at the single bedroom. Luckily, he's got something up his sleeve for Joe as well. Here's Joe's wardrobe. BOTH LAUGH More than enough room for a bloke's wardrobe. < Definitely. The second bedroom is on the cusp of being poky, but the windows help. Quite nice and light. < It'd be all right as a spare room or an office or something. WHISPERS: Or a baby's room. (CHUCKLES) Would you like to see the bathroom? With a chance to exit the baby conversation, Joe can't get to the bathroom fast enough. There's a bath for you. It's got a bath. Upgraded in 2010, so it's got a good-sized shower. It's got a full-sized bath... BANG! ...pedestal. Now, Joe, if you break it, you'll have to buy it. BOTH LAUGH Outside, Bernie's on a roll, riffing ideas left, right and centre. So, here's the garden, guys. Nice and long. Nice and long. Plenty of space down the back. You know, Joe, if you wanna get away from Maria, there's a` there's a long way down there. All the way down there to get away from you. This area would make an awesome outdoor area. I have visions of the stump being cut down, and a table put over the top of it. Yeah, yeah. Take a seat. (GROANS) Ooh, that's low. CHAIR CRACKS How does that feel? Like your one's breaking. Like my one's breaking. BOTH SIGH I would have thought you wouldn't have exceeded the weight load. (LAUGHS) Definitely not. OK, this is called the sit-down test. Does the property feel like home? This is nice. Mm. I like this. Bernie could sell ice to Eskimos. Joe and Maria are starting to see themselves at home here. Really nice. Do a veggie garden. After the blow of having their budget reduced, they're back on a high. It's better than I was expecting, to be honest. I was very pleasantly surprised. I looked at the front and kinda thought, 'Uh, a bit poky.' Can't put a garage on... Yeah, and trying to find the front door. But after all that, it's actually quite` quite a nice, um... It's rea` I actually really liked it. Yeah. I really, really liked it. Put up your white picket fence` My white picket fence. ...paint the door red. Done. (LAUGHS) This cosy home would be a perfect starter, but there's just two days until tenders close. Will they have enough time to get their finances together? Next time ` a hold-up with KiwiSaver puts a spanner in the spokes of Joe and Maria's dream. Just wondering how long it's gonna take? It's really urgent that we actually get that this week. And in Wellington, Americans Bonnie and Matt grabble with the realities of NZ housing. In the US, you just expect to be in a warm house even in the midst of winter. Captions were made possible with funding from NZ On Air.