Can you afford a home in NZ?

[sergei]

I brought when I was 21 simalar to mr30%


It does help, however its not impossible for you to own a house.

most of can I or cant I will come down to your mindset on finances and your willingness to change your thinking where you are falling short.

i saw someone post "im a poor student" in this thread somewhere, well thats just your mindset right now. thats fine, good for you.

I know students who have the totally oppisite mindset, that while the are in training they are also running businesses at the same time. again just a mind set.

Yes its tough in NZ but its tough everywhere in the world, so if you actually want a house then you can have one.

What you are missing out is not every one can run business, in reality it is impossible to run business for every one. I for one can't stand pure profiteering (which most of businesses are).

[tsoob]

What you are missing out is not every one can run business, in reality it is impossible to run business for every one. I for one can't stand pure profiteering (which most of businesses are).

im not suggesting that sergi, what im sayins everyone can afford a house IF they want to.

do you have a job at all?

[Bling]

I don't agree that everyone can get a house, there are plenty of people out their without the financial capability to do it. Hell, just look at anyone under 25 with 4 kids . However some people don't understand that in order to do such things you may need to make sacrifices of some sort or another. Not everyone can do that. Only reason I can afford a house is due to having a 2 income household.

[sergei]

What you are missing out is not every one can run business, in reality it is impossible to run business for every one. I for one can't stand pure profiteering (which most of businesses are).

im not suggesting that sergi, what im sayins everyone can afford a house IF they want to.

do you have a job at all?

Of course I do, and get relatively good money (but less than mortgage repayment for a 350,000 house, which in the area is a 2 bedroom old piece of junk) and this why I say holding normal job will not allow you buying a house. Not only that my bank would not even consider my wife's and my income combined together for mortgage.

Now I am stuck, because I chose to do something I like vs if I would go slightly different path I would probably be richer (but I a lot more dissatisfied). Theoretically I can get real good money for my speciality (Linux admin), but in NZ there aren't many companies that require my skills (who does high availability/virtualisation/clustering in NZ?).

So my choices are, live with parents and my wife as a big family save money, learn Swedish/Norwegian and move to Europe. NZ in terms of getting job as specialist is a joke, just look at the ads, they want sysadmin/support/dba/computer janitor/php developer all in one, on the salary that does not simply justifies having qualifications/experience at all. The small business dominate in NZ, and no one needs specialists, every one needs a "handyman" that does everything. Hence most of the NZ IT infrastructure is held by duct tape. My $&#$% ISP can't even read tcpdump longs I have supplied them!!!

[iOnic]

$350k got my mum a brand new 4 bedroom house with 2 car garage in Ardmore (~50kms to Auckland city). This was 5-6 years ago when property was booming. It's probably worth less now. What areas have you been looking at that have 2 bedroom shitboxes for $350k?

[mr30%jr]

simple fact for you,

2008, working for service plus in penrose, renting in auckland central, ok house, 160 a week, getting paid 30k a year got into 10,000 worth of debt. failed

2009/10 came back got a job instantly paying about 35/37 ive changed jobs twice. own my own home and am doing fine.

auckland prices are too expensive... yes there is an ubance of work it doesnt mean it pays well the cost of living is too high and houses are over inflated.

i dont live in the best part of napier i tell u that but it has its upsides and i havent been robbed yet (they dont shit in there own nest lol)

[Bling]

Average sales price by area.

http://www.trademe.co.nz/Community/Prop ... etter.aspx

If its too expensive where you live, there's too many people living there No one should be able to start out with the best house, just like no one starts out buy owning the brand new car. You buy the shitter first, get yourself in a better financial situation, then look to sell and buy something better.

Too many people have the attitude that its just not fair they can't afford the house they want now. Them having that attitude doesn't worry me though, as it just gives the others that are willing to start at the bottom of the ladder a better chance of getting on. Meanwhile the same people that moaned 10 years ago about houses being unaffordable, are still renting, while the people that bought the house have a good chance of selling that and buying something better. The savings the renters made, only cover the increase in values during that 10 year period, so they can still only afford the same average house and are even less willing to do so as that's just not fair!!

May have lost my way now... but I have pretty strong views about property.

[S T E A L T H]

look in Waiuku, Helensville, Hunua, Ardmore.
Plenty of opportunity there for very decent 3+ bedroom properties on a sub 350K budget. Or you could even look in (gasp) Rewa/Mangere/Otara...

[..::ROCKETMAN::..]

look in Waiuku, Helensville, Hunua, Ardmore.
Plenty of opportunity there for very decent 3+ bedroom properties on a sub 350K budget. Or you could even look in (gasp) Rewa/Mangere/Otara...

You can add Ranui to that list, if you like. I'm selling my renter there (was our original house before we bought in Swanson). Trying to get as close to $300K as poss, but realistically, probly get more like $280K...

[Mad Murphy]

I guess I could if I wanted to, but that would mean committing to a full-time job and having to stick to it for ages which I'd hate to do. Right now I don't even want a house though, I'd rather spend my money on travel and education.

[mr30%jr]

lol you can allways sell tho, if your wise youl make money.... like im going to i bought it 40k bellow GV and no bastard wanted to touch the place the realestate agent couldnt even be bothered selling it...

thats the house you want to look for then i prety much gutted it

[Dell'Orto]

Of course I do, and get relatively good money (but less than mortgage repayment for a 350,000 house,

Out of curiosity, have you talked to a mortgage broker at all?

[tsoob]

Of course I do, and get relatively good money (but less than mortgage repayment for a 350,000 house,

Out of curiosity, have you talked to a mortgage broker at all?

I think you would find that anywhere in the western world its hard to buy a house.

I take your valid points tho guys, you are right for some its defineitly harder than others.

hey at the end of the day its only a friggin house. if its really important then ull find a way if its not so important then it dosent matter.

[anthonym]

It's all very well trying to blame rich landlords and banks for the unaffordability of housing in NZ, but the reality is they are only a small part of the problem.

a rich residential landlord is a rare beast, commercial is a different, but irrelevant, matter. Bankers OTOH are a large part of the problem IMO

The biggest problem is the law of supply and demand, there are more people wanting houses that there are properties available so the prices will continue to rise.

Based on what? Who says?

The biggest culprit in this case is councils restrictive subdivision and development rules. Councils don't want to spend the money on infrastructure so they make it hard to subdivide rural land, all under the guise of protecting the amenity value of rural living. This causes the cost of land in the areas they do release to be over inflated, or if it's not expensive, it's because nobody wants to live there, and due the the costs involved in resource consents and council development fees there's no such thing as cheap land anymore.

Not that you have a vested interest at all eh? . And what is your definition of cheap? IMO the biggest culprit is the risk averse Sararīman offsetting their PAYE with an LAQC that owns rental property running at a loss. These arrangements rely solely on tax free capital gain thus causing a large distortion in property value. You only need look at the true yeild of residential property investment, less than far safer bank deposit rates, to see the truth in this. Once this is addressed the rush of Sararīman investors exiting the market (by choice or forced by the bankers) will lead to rents rising and property values falling.

[sergei]

Of course I do, and get relatively good money (but less than mortgage repayment for a 350,000 house,

Out of curiosity, have you talked to a mortgage broker at all?

Nope, I looked at some brochures, and did calculations, and put it simply I can't afford it. I don't need some broker tell me when I can work it out myself.
I mean, of course I could pay mortgage, but to achieve this is to effectively put myself on house/work arrest and strict diet for at least 12 years.

Only ways I can see right now, that I will be buying a house is either win lottery (but I don't play lottery, I hate wasting money on stupid shit), or "earn" money illicitly. Hard work does not pay. You will have to con something/someone to become rich. Unfortunately for me, my sense of guilt is a lot stronger than of typical Christians, I can't simply pray and feel better about myself. So scamming someone is out of the question (plus I am hopeless at lying)

[pureadrenalin]

Of course I do, and get relatively good money (but less than mortgage repayment for a 350,000 house,

Out of curiosity, have you talked to a mortgage broker at all?

Nope, I looked at some brochures, and did calculations, and put it simply I can't afford it. I don't need some broker tell me when I can work it out myself.
I mean, of course I could pay mortgage, but to achieve this is to effectively put myself on house/work arrest and strict diet for at least 12 years.

Only ways I can see right now, that I will be buying a house is either win lottery (but I don't play lottery, I hate wasting money on stupid sh*t), or "earn" money illicitly. Hard work does not pay. You will have to con something/someone to become rich. Unfortunately for me, my sense of guilt is a lot stronger than of typical Christians, I can't simply pray and feel better about myself. So scamming someone is out of the question (plus I am hopeless at lying)

Man, you come across as a glass half empty kinda guy.
Why do you have to earn illicitly? I, just today, reached an income goal I've had for a few years. It will defiantly help out with paying for the house/race car. Everything above board, and I ain't got no degree. Highest piece of paper I have is high school UE.

[sergei]

Of course I do, and get relatively good money (but less than mortgage repayment for a 350,000 house,

Out of curiosity, have you talked to a mortgage broker at all?

Nope, I looked at some brochures, and did calculations, and put it simply I can't afford it. I don't need some broker tell me when I can work it out myself.
I mean, of course I could pay mortgage, but to achieve this is to effectively put myself on house/work arrest and strict diet for at least 12 years.

Only ways I can see right now, that I will be buying a house is either win lottery (but I don't play lottery, I hate wasting money on stupid sh*t), or "earn" money illicitly. Hard work does not pay. You will have to con something/someone to become rich. Unfortunately for me, my sense of guilt is a lot stronger than of typical Christians, I can't simply pray and feel better about myself. So scamming someone is out of the question (plus I am hopeless at lying)

Man, you come across as a glass half empty kinda guy.
Why do you have to earn illicitly? I, just today, reached an income goal I've had for a few years. It will defiantly help out with paying for the house/race car. Everything above board, and I ain't got no degree. Highest piece of paper I have is high school UE.

Perhaps you have an advantage of not being a foreigner?

[Bling]

You haven't spoken to a broker but are an expert on the affordability / lack there of, of buying a property?

Is it just me or does that not add up?

Using the excuse you're a foreigner for anything in this thread is a bit of a joke tbh. No matter where you are from the banks / brokers aren't going to discriminate. Half of "NZ'ers" are probably foreigners, myself included. I certainly don't use it as an excuse and someone with your smarts shouldn't either.

[mr30%jr]

thats just commitment issues... shit im 21 i had to get over than pretty quickly, i can do more, if i wanted i could have 2 flat mates at 100 week that would see me paying about 50 bucks a week rent lol

you can allways rent it, do it up and sell it?

alot of people get paid alot more than me so i dont see why they wouldnt buy, rents just wasted money when you can convert that into owning something.

Some people put their expectations of their first house WAY too high and they need to get real if they going to have any chance of having any good assets to settle with by the time they are older.

Thats the problem with the younger generation, they do not think of later on. goverments answer to that was kiwisaver but its shit.

"ill have to live in a shit house" "i will have to look after my own place"

[Mr Revhead]

Some people just don't want to be tied into somwhere/thing for that long. I certainly don't.
Also unless you earn well above the average age, you need some kind of break to own a house, Ie lump sum payout (inheritance) parents helping you out or something.
If you have none of that it's a lot harder. Especially if you are single and can't commit 2 incomes.
Sure you could still do it, and become one of the aforementioned hand to mouthers for 20 years....
Living is not pissing away 20 years living hand to mouth just so you can say you own a house at the end of it.
Thats my stand anyway