On House Hunt ` we're tracking the highs... GLASSES CLINK ...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 ` will a KiwiSaver cock-up cost Hastings couple Joe and Maria their first home? I was just wondering how long that's gonna take. It's really urgent that we actually get that this week. And in Wellington, the windy city, Americans Bonnie and Matt face the frigid facts of Kiwi home ownership. In the US, you just expect to be in a warm house, even in the midst of winter. Famous for its cafes, culture and art scene, Wellington has been dubbed the coolest city in the world. But with red-hot conditions in the Auckland market and a downturn in government-sector jobs, a cold wind of stagnation has blown through the Welly property market. That could be a good thing for first-time buyers Bonnie and Matt Gadd, who want a family home for their children, Gwen and Elsie. Originally from the US, they've been living in NZ for the last decade. I think the best thing about NZ is it's just, um, a very family-friendly place to live. We feel very safe and secure. There's so much positive to being in NZ, just the life we've built here, the culture` Yeah. ...the good coffee. Young professionals Bonnie and Matt first started searching for a home two years ago and had pre-approval for a loan. But then the banks clamped down on low-deposit lending, and like many first-home buyers, they were shut out of the market. It was such a drastic turnaround. I mean, banks` just everyone said, 'No. We're at a standstill. We're not doing any low-equity loans,' and you're just shut out. And that was a really... (SIGHS) It was a` It was a disappointing experience. But after drawing down some true grit and saving hard, they're back in the race ` pre-approved, pre-loaded with $450,000 to spend, and a good idea of what they want. Three-bedroom with a little garden for our girls, something where the commute's not gonna be too far, and that's, um, reasonably priced. The health of the home is really important because we do have two little ones. They need to be warm... (LAUGHS) in the wintertime, and they need an environment that's not` have, you know, mildew, mould. In the US, you just expect to be in a warm house, even in the midst of winter. In many American states and cities, Bonnie and Matt's money would go further, down to heated flooring and double glazing, but it seems that the charms of NZ have won them over. Never, growing up, would I ever have imagined that I'd be borrowing almost $500,000 to buy a house. Yeah, especially a house that's, you know` Yeah. ...needs work. Needs a lot of work to be just healthy, let alone nice. But we're willing to pay the premium to` to live here because we` we like it so much. Lucky it's not Auckland. After marinating in the market for two years, Bonnie and Matt have a pretty good handle on what they can afford. It's certainly a first home, not a dream home, scenario. We're very realistic about, um, what we can expect in our price range. So we're not expecting miracles, uh, whatsoever. We just wanna get started. They're starting their search here in the suburb of Newlands, an easy 8km commute north of the city. This smart three-bedroom house is on even smarter sizeable section with full childproof fencing. The icing on the cake is the rateable value... Elsie leads the way, excited about taking the tiki tour. All right, shall we come in? It's very tidy. Yeah. It's nice. Kitchen's pretty nice. I like the floor. It's pretty cosy in here, though. < Yeah. For all of our craziness it's not heaps of space, but Matt's kind of of the view, um, bigger houses just means more stuff. (CHUCKLES) So it's not necessarily a bad thing. The living area is compact, which means less room for building large pillow forts on wet Wellington days. But eldest daughter Elsie has completely bypassed the lounge. Do you wanna live in there? Is that gonna be your room? No? OK. House-hunting with young kids in tow can be challenging, but Bonnie and Matt are trying to stay positive. Tidy. Small. Carpet seems relatively new. Let's go home now. Elsie might have preferred the house to be pink and in the style of a fairy's castle, but hopefully the master bedroom is better. TV's about as big as the bed. Yeah, that's one big TV. Looks nice. They got the double wardrobe in here. It's a large room with big views. Maybe a little too big. Not a whole lotta privacy. Yeah, I guess with all those` Those must be new builds right there. Bedroom three reminds Bonnie of the good old days. Remember when it was just us and we had a room that we just used as a closet? (LAUGHS) Not any more. Can we go now? Yes, we're gonna go very soon. This could be home, Elsie. In which case, there's gotta be a naughty step somewhere. Well, the deck's pretty nice. Um... Yeah, it's just not too private, again. I wouldn't really be that inclined to wanna sit out here, I don't think. But the lawn's nice and big. I like that. But really nice, really tidy. That indoor-outdoor stuff's really nice for a family like ours. Bonnie and Matt have been given a heads-up that the place is already under offer, but do they want to place a rival bid? Nice and tidy on the outside and, uh, yeah. Looks the, uh, garden's kept up really nicely, so, looks nice. After much discussion, nice doesn't quite cut it. Concerns over lack of privacy and space mean the Newlands home is a no go. In sunny Hastings, childhood sweethearts Joe and Maria were having more luck. Homes here are much cheaper. Room for DIY. Room for DIY, exactly. But then came some bad news from their mortgage broker. With the personal loan, we're not in the ballpark that we initially hoped. Due to an unpaid personal loan Joe took out a while back, their budget shrank to a tiny $170,000. But, believe it or not, that could still be enough around here. This is nice. Mm. I like this. They found a place within budget, but with just two days till tenders closed, time was against Joe and Maria. The paperwork took too long, they couldn't get an offer in, and it's gone. What about this place? But since then, the landscape has changed. Family rode to the rescue, paying off his personal loan, and now with the budget back up to $240,000, another house has come up, and it looks perfect. The asking price is 245. Just in our price range. We could swindle it down. (CHUCKLES) We could try. It's just down the road from the last place in their sweet spot of Akina. It has... But has it got that special something? Oh, that's a big carport. Red door, though. It does. A red door is a great omen because Maria really wants one. Red door! The major hurdle cleared, how about the minor details? < Oh wow. That's a big fireplace. It's huge. Look at all the space. (LAUGHS) It's big enough. Bigger than anything they've seen so far. All the light. That's gonna get sun all day. Having a light, bright home is important to Maria, who spent her childhood in a series of dark damp rentals. The lounge is going to be heaven in the afternoons with` after being` sitting in the sun all day. I'm gonna sit here and read. Open-plan living. Big kitchen. Far out. Whoa. The kitchen has a great feel, and Maria sees herself and Joe entertaining here. I can make the coffee and still talk to the people at the same time. But the coffee chat goes cold when Joe spots a no-no. Don't do that, because that's stupid. Being a fire alarm technician, you do not put a smoke detector on a wall. Smoke rises, so if you go to put a smoke detector in, put it away from the wall, further than 200mm, which is about that far, no further than 500 from the apex. Thank you, Professor Joe. (LAUGHS) After the scintillating safety briefing, Maria's ready for a lie-down. First bedroom. That's cool. Those beams are cool. > They're interesting. (CHUCKLES) You don't like them? I don't dislike them. I reckon that's cool. The bathroom is perfect ` if you're a fan of 1970s decor. That's a lot of orange. It's more like` It's more brown than orange. Even painted the bath. You'll learn to love it, babe. I probably won't. (LAUGHS) The bathroom may have dampened Maria's mood, but the bedroom soon perks her up. < It's a nice little bedroom. Or study. It's cute. Or nursery...? Come on, now. (CHUCKLES) Master bedroom. That's big. Wow. Wow. That's really big. After living with Joe's family for the last few months, this young couple may have forgotten the procedure. Luckily, there's broadband. It'll be so good having a whole house. Sit in the lounge and not be having to worry about anyone else and don't have to cram into one room. These newly-weds can see themselves here for years, and DIY enthusiast Maria can see endless possibilities outside. I like that it's a blank canvas and we can start from scratch. Do what we want. The sun's shining on these two today ` physically and metaphorically. Could it be a sign that this is the one? I didn't expect much from the front of the house, but it's so warm, beautiful and bright. Trying not to get too excited. (LAUGHS) Yeah, we've been a little bit let down with some of them. I think this house is waiting for us. > We'll have to talk to the agent now. Put an offer in. Yup. They decide to put in an offer of $240,000, just under the asking price. It's everything they've got, but will it be enough to seal the deal? In Wellington, Bonnie and Matt are trying to find a warm, largish family home. With a budget of $450,000, anything goes, including building from scratch. We want something that at least will have insulated walls and double glazing. I think that's one of the main reasons why we're interested in doing our own build. If we're gonna put all this money into something, we might as well get exactly what we're looking for. This couple's bold thinking could pay dividends, and they've found an exciting prospect in the popular suburb of Paparangi. This flat section with views could provide the ideal foundation for their first home. The registered valuation is a realistic $165,000, and Bonnie and Matt know if it sells at that price, they'll still have a lot of cash to play with. It would be a great option if we could build at the right price. That's the thing ` being able to build at the right price. But building a brand new home can be expensive. So, Bonnie's been doing her research, and she thinks she's found a way to keep the costs down. Matrix homes have a clever take on housing. They prefabricate in their factory and deliver direct to site. Prices for a three-bedroom house start at $185,000, with a variety of layouts to choose from. Bonnie and Matt are on site to check out the show home. And this time, they've left the kids with a babysitter. This must be the master one, huh? Yeah, that's it. It's a pretty good space. I mean it's certainly an upgrade from where we're coming from in the rental. Yeah, it's not huge, but it's big enough, I'd say. Yeah. I'm keen to check out that bathroom. The bathroom is light, bright and modern. I actually really like this flooring. The, like, really big tiles. Mm-hm. Yeah, it's nice. Cos it makes you feel like you could clean it easily. Bedroom number two has got Elsie written all over it. And she hasn't even written all over it yet. Really nice space. For sure. The girls` It's nice, like, being inside of a new place, isn't it? Oh yeah. Yeah. I just feel like it's been ages since we've been inside somewhere new. Since arriving in NZ, Bonnie and Matt have been living in a series of dated rentals, so the show home's modern features are a breath of fresh air. Bathroom number two is a welcome bonus. Bathtub. And a shower. Oh yeah. This is a configuration I really like, is having them both in one. It's great. And bedroom number three breaks the rule ` it's big! This room seems bigger? It's nice. All the rooms are a good size. Large and new, delivered on site, Bonnie and Matt can see the wisdom of their plan. I mean, if we could achieve this as a first home, but in a first home budget, we would be really lucky. I think so too. Oh, this is really nice. I like the bench. Yeah, I know, it's actually... I think it's nice how it's all open to the living area and dining and stuff. Open-plan living is perfect for families, and there's plenty of space for an entire pillow fort suburb. I could really see ourselves in this house, for sure. Yeah. Mm. It's just basic, and it's comfortable, and it would suit us and our needs, our immediate needs. Like, if we could accomplish this, I would feel like we had accomplished a lot. Bonnie and Matt are sold, but before they sign on the dotted line for the section and then the house, they need to discuss figures with Matrix Homes managing director Sean Murrie and architect Graeme Farr. Our houses come in two size modules. < We had a quick look at the site, and we think a fairly straightforward layout would be a one and a two-bedroom modules. Mm hm. This is quite easy to transport. What was the price of the house by itself? Uh, 216. We think we're around 30% cheaper than the` than, you know, traditional site build houses at the moment. Despite suffering from something of an image problem in NZ, prefab homes are already popular in the US. Consequently, Bonnie and Matt are well versed in their many benefits. So, this concept of prefab, we've been talking about this for years. We really believe that it could be really beneficial to NZ Kiwi families. Every home we've been in in Wellington so far has had some type of mildew or mould, or it's cold. Right, yeah. We're so over it. The big advantage of a new house is that they're` that much greater insulation and they have double glazing, of course, the standard, so` Yeah, we're definitely ready for a warm, dry home, hey? Buying a home and land separately requires a lot of planning and a tightly controlled budget. We know exact` our fixed costs. You'll have a fixed cost and a fixed time of arrival because we're not affected by weather. Um, and, uh, there's no price escalation. They build so fast that, you know, the price is the price. Might only be a week or two after you settle on your section that you move into your house. Isn't that crazy? > Yeah. At Bonnie's request, the team at Matrix have already assessed the section to make sure it's suitable to build on. Nice side. It faces the afternoon sun really well. It's got a nice outlook. I think if you do get it, you've got a good one. But their plan will only work if they can secure the plot at the right price, and unfortunately for Bonnie and Matt, they're not the only ones with their eyes on the section. You're the third person that's come to us about this site. Ugh, that's the thing, securing it. It's, like, doing my head in. I don't know how many developers are interested. Yeah. So, yeah, we've got some number-crunching to do tonight to figure out what our best offer could be. Tenders on the Paparangi section are about to close, and our couple know competition will be fierce. A sleepless night awaits. In Hastings, it's been similarly stressful for Joe and Maria. Since putting in an offer on this three-bedroom home, they've been locked in negotiations. We made an offer, under obviously their asking price. Um, of course, that came back counter-offered, and since then we've` we've offered just a bit over 240. It's now under contract, and we're currently awaiting KiwiSaver and finance. Their offer of $242,000 has been accepted, subject to finance. So why the long faces? Although changes to KiwiSaver mean first-time buyers can now access savings for house deposits, Joe and Maria's application is still being processed. And if they can't get the cash in time, they could lose the house. It was really exciting when we finally went under contract. After all this time of looking, we finally had this thing to look forward to, and then to have something that could potentially stop all of that was absolutely heartbreaking when I found out. And, so, the waiting is now just absolutely dreadful. (LAUGHS) Holding my breath. Joe's employing a mixture of patience and manners to get things moving. So, I was wondering how long it's gonna take? It's really urgent that we actually get that this week. Even though they've lodged all the paperwork and been waiting for over a month, there's still no guarantees. < If we have to wait another month, then the house will go back on the market. If someone else snatches it up, then it's gone. After everything they've been through, it seems the ancient wall of bureaucracy is about to stifle their dreams. But all they can do is wait and hope they get access to their money in time. 1 In Wellington, Americans Bonnie and Matt are trying to get the best bang for their buck with a new build. But everything hangs on securing a popular Paparangi section as the spot for their modern prefab dream. Buying land and a house to go on it separately can be a minefield, so Bonnie's wisely decided to consult property lawyer Paula Keats for advice. My recommendation that we make the tender subject to finance, LIM report, and just a general due diligence enquiry so that you can check out 100% that Matrix Homes can... ...accomplish what they think they can. Yeah, what they're suggesting they can. Decent buildable sections this close to the city are almost impossible to find. Bonnie knows they could be facing real competition for the site, and it's adding to the stress. Now, I've just gotta think about what our price is gonna be. Yeah. When it comes to submitting an offer, there are lots and lots of pressures. You've just got to put your best foot forward and your best price forward. With decision time looming, an undecided Bonnie turns to Matt for some final reassurance on their enormous commitment. (SIGHS) I'm getting ready to sign the tender document. Um, you don't have to sign it, um, so, I can go ahead and do that and submit it today. But I just wanted to run` double-check numbers with you before I wrote something on the page. I'm just, yeah, feeling a bit anxious about it. So, looking at the building costs, > I was thinking low 180s. (MATT) ON PHONE: Yes. So, 183? Sure. Is that good with you? All right, sweetheart. Well, I'll call you, um, after I drop off the offer, and I guess we'll just cross our fingers. Finally, they decide to offer a realistic $183,000, which is $18,000 over the registered valuation. And Bonnie's added a special touch which she hopes could turn the tables in their favour. Just to reach out and try to, you know, connect with them to say, you know, 'We are the people behind, you know, this` this faceless process.' That's really nice. That's just giving them a feel for who you are as a family, and when there's offers on the table and they're all very similar, it might be just the one thing that gets you, uh, that offer accepted. So, why` Why wouldn't you? With the paperwork signed and the offer in, their fate lies in the hands of the vendor. I feel more nervous about it not achieving the site than` than overpaying. I don't know if that sounds crazy, but all we can do is take a stab in the dark and just see what happens. But in Hastings, Joe and Maria have crossed the finish line. Their KiwiSaver funds arrived just in time to help purchase their first home. It's a happy day here at the Akina property, with the whole whanau here to help them move in. Thought you might need this! And Mum's making sure they'll be washing their own dirty laundry from now on. It's a bit crazy. (CHUCKLES) I have no idea where anything is going to go at this stage. It still doesn't feel real, though. Mm. It` We've` I've dreamt and thought about this house since we've, kind of, been accepted on the offer, and it still doesn't quite feel like this is actually u` this is ours. We're here. We've made it. (CHUCKLES) Probably take a week. Yeah. (CHUCKLES) But we will get there. I'm not driving back to our parents' place. (LAUGHS) It's been a hard road for this young couple, and they've learned a lot on their journey to home ownership. So it's been stressful, in a way, because it's all new. It's all just a new experience. The first house you live in doesn't have to be your forever house. It can be the house you live in for a` two to three, five, 10 years, and then move on to the dream house. There doesn't have to be a dream house the first time round. These newly-weds finally have their own space. Or at least they will when the celebrations are over. Very very exciting. I can't wait to unpack. But, for now, it's time to enjoy this major milestone surrounded by family and friends. GLASSES CLINK, ALL CHEER Next time ` will Bonnie and Matt's dreams of prefab living come true or will it all come crashing down? Sorry. And in Hamilton, the race is on for animal lovers Monique and Chris to find their first home. I remember reading that if you don't have a house by the time you're 40, um, then it's not really looking too good for you. Copyright Able 2015