Rentals in Central Auckland

[revdev]

If renting was more expensive, why would people rent and just not buy

One word..."deposit"

[PC]

2nd word "Flexibility"

What? You’ve never rented a car, cabin, chain saw....
Imagine the extra cost if the government got more involved in those transactions!

[NIK]

I do not look forward to this kind of thing at all. I myself am young, and to enter into a job, and to start trying to afford a place like this to live, it's going to be near impossible. Renting is meant to be cheaper than buying and having a mortgage, however at these kinds of costs, I am never going to be able to get a kick off the ground. Does that mean I will have to move elsewhere? As another poster said, chances are these kinds of pricings will spread out of Auckland as people look for work and housing elsewhere, the price trend will move with them.

Not a nice prospect.

'renting is meant to be cheaper than buying and having mortgage...' - well maybe people think so here in NZ...

[NIK]

Oh no, I totally agree, my parents did this also, but moving to be able to afford a rental? And when the price follows, then what? Just a kind of downward spiral.

I moved first to UK then to NZ ... as back home I would never be able to afford to rent or buy on the average salary! moved countries then continents...after all people did migrate for thousands of years hoping there was a better future in the distant place....

[Wayne]

As Perry says, renting coming to the same value of mortgage payments, buy. Then you own the place. No pesky LL to worry about. If renting was more expensive, why would people rent and just not buy, and then have some return (hopfully) on the place when they sell?

You then have your capital tied up (assuming you have a deposit). You will be unable to move around easily (houses are a fairly illiquid asset). You will have all the maintenance issues that comes with owning. Personally I would own but it does make it harder to change cities though I find, as you get older, you are less inclined to move around.

[WaterfrontNZ]

That is a good point about the deposit, didn't connect the dots on that one. And as Wayne says, less inclined to move around, so wouldn't that support buying over renting?

[Wayne]

I think the rent or buy arguement changes with age and stage of life. I can't imagine my children buying at the moment as they don't see themselves settling here. They want to go overseas and learn some more, see some more. I purchased at 22 but maybe I was always a nester? That doesn't mean I haven't seen the world (and a lot more to see) but many young people will rent. As you age security probably becomes more important, the thought of renting at 60 scares me a little. I have read that the pension is sufficient to live if you don't pay rent or a mortgage.

[NIK]

force your kids to buy a property before they go on oe...know too many that dpent 10+years overseas spent money travelling in pubs etc only to be bashing their heads against the wall upon their returb to nz...one friend bought couple of places before going on oe topped it from good uk salary and now has five properties here in nz mrtg free....same age wish i have done the same...he might not return to nz but can always sell up....

[Maccachic]

I had a rental when I went and did my OE.

[flyernzl]

Don't forget that when you rent as well as getting a roof over your head you are also employing someone to not only pay the rates, insurance and water charges but also handle all the paperwork hassles involved, organize and pay for electrical and plumbing repairs, pay for ongoing maintenance and also organize and pay for paint paper and floorcoverings replacements as and when they become necessary and gaining someone to berate, moan about and abuse as you feel like.

In effect not only are you gaining accommodation but also a servant.

[KatieR]

I do not look forward to this kind of thing at all. I myself am young, and to enter into a job, and to start trying to afford a place like this to live, it's going to be near impossible. Renting is meant to be cheaper than buying and having a mortgage, however at these kinds of costs, I am never going to be able to get a kick off the ground. Does that mean I will have to move elsewhere? As another poster said, chances are these kinds of pricings will spread out of Auckland as people look for work and housing elsewhere, the price trend will move with them.

Not a nice prospect.

Firstly, renting is now not always cheaper than owning if you are fexible and save a decent deposit. Secondly landlords need to be careful about putting up the rents massively- there are properties still not renting if the property is not maintained or suitable for the young and not-so-young professionals who can afford it. From what I have seen, the run-down and neglected properties with increased rents are empty for weeks before lowering the rent again. I lived in real dogs at cheap rents to save my deposit- and had many flatmates in bad areas (teachers are good and not fussy) so I'd advise leaving central Auckland and commuting, if you are serious.