I'm a South Auckland girl, and I'd go on http://nzschools.tki.org.nz/ and check out Hill Park School, Everglade School and The Gardens School zones as areas to buy, and look at anything in Papatoetoe's Golden Circle (on a map it'll an area bordered by Puhinui Rd, Great South Rd, Shirley Rd and St George St/Carruth Rd). They'll be at the upper end of what you want to pay, but decent houses in a good area.
I would also look at West Auckland because SH16 would make the commute easy, but I personally don't know the area.
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