Facing up to home truths

Will and Diana Miller are planning on riding out the housing slump by staying put in their Devonport villa.

Diana, 39, says the couple was well aware the market was falling when they bought their home for more than $1 million a year ago.

"It doesn't concern me overly, because the reality of the property market is that it's cyclical," she says. "What goes up must come down - it always has done and will continue to do so. There will be good times again probably in another 10 years but that's a while away, so it's just a case of riding it out."

Diana and Will, 36, were expecting their first child when they were looking for a house. Georgia is now a 1 year old.

"It was a case of 'do we ride it out and rent?', but it was a judgment call we made to buy somewhere we knew we could do things to improve, and somewhere we wanted to stay for a period of time so we wouldn't have to buy and sell again as the family expanded," says Diana.

The value of the Millers' home may drop more than 20 per cent, according to the Budget forecast, but at least they are in the city. In rural areas, the property downturn is only just beginning.

"For New Zealanders, our home is our castle. New Zealanders love owning homes and therefore we will continue to do so."

The Millers will soon renovate, and Diana says she would have liked the Budget to include an incentive for homeowners to stay in their homes and do the same.

"They should have put in something to allow people to apply for housing permits that they don't pay any fee for," she says.