Young buyers shell out $75k in rent to landlords

First-home buyers purchasing properties this year have lined their landlords’ pockets to the tune of at least $50,000 and in some cases almost $75,000, new data shows.

Corelogic has provided analysis that shows the typical amount of money that first-home buyers shell out in rent before they get into their own houses.

It assumes that the buyers were renting from April 2006 to March 2016, in a typical three-bedroom house, sharing the rent with two other people. Rents are based on median rent data supplied by Ministry of Business, Innovation and Employment.

It shows Auckland buyers have paid almost $75,000 - the most expensive rent bill in the country.

Rent prices are up almost 5 per cent year-on-year across the country,

‘‘You have to think about how they save a deposit if it's unaffordable to buy and it's unaffordable to rent.’’

Economist Shamubeel Eaqub

according to Trade Me data.

Economist Shamubeel Eaqub says young people face huge hurdles trying to buy, of which rent was one.

‘‘You have to think about how they save a deposit if it’s unaffordable to buy and it’s unaffordable to rent.’’

David Boyle, group manager of investor education at the Commission for Financial Capability says it is ’’bloody hard’’ for firsthome buyers, and more difficult now than it had ever been.