$375k house - costs $900 a week

[Glenis]

MB - your maths is out by a bit - that's $200 month.

In Rotorua our rates are $1,600 pa and we have a very modest house in a very average area. My elderly parents pay $3,600 !!

[Heg]

Do you mean body corporate? Or do you mean you are paying $300 per month just to live over the shore with out taking into account the mortgage cost if any.

Not body corp - just rates. North Shore City Council rates. PLUS we pay ARC about $500 per year. And guess what - we are in for an alomst 6% increase this year (that's an increase in rates NOT services provide by the council......)

[mortgage broker]

Your rates seem a little light. Ours are $2400k per year here on the North Shore and that's not including ARC

Do you mean body corporate? Or do you mean you are paying $300 per month just to live over the shore with out taking into account the mortgage cost if any.

[Omad]

Your rates seem a little light. Ours are $2400k per year here on the North Shore and that's not including ARC

I was using the rates quoted in the article.

[Heg]

With rates at $1400 ($27 per week) and insurance at say $600 ($12 per week) you are still only looking at $762.15 per week.

Am I missing something?

Your rates seem a little light. Ours are $2400k per year here on the North Shore and that's not including ARC

[mortgage broker]

Have you seen our costs for broadband? Or Cell phone calls.

[Austrokiwi]

Take $40k out for private schools and wallop you're down to $1,200 which is ok but not fantastic especially with a big mortgage or 2, lease car, credit cards ....... I could see how you could be broke. Personally I'd be taking the kids out of school, it's better than losing the roof over your heads and then they have nothing to come home to.

They can always send them to Uni later - more debt.

Woah when did nZ school fees state to match Europes? My two cost me €20000 each a year!!!!

[CJ]

CJ - did you miss out on the English summer school option??

it is amazing the qualifications you can get in this country without being able to read, write or spell. I will try to remember to proof read in future.

ps. obviously i was state skool.

[cube]

Back to the article, as soon as I saw the headline, I need that the reporter parents should have seen them to private school as they obviously didn't do very well as maths.

CJ - did you miss out on the English summer school option??

[outspoken]

I think they mean that there won't be a big difference to them if interest goes up since they are already paying at the top level.

When I working in banking many years ago, 12% was the standard rate and was for many, many years.

Well yes, what you are saying may be the case but that just makes them 1 more kumara short of a Hangi because the "others" are in a far better position for having cheaper loans.

[CJ]

When I working in banking many years ago, 12% was the standard rate and was for many, many years.

Inflation was also higher (probably) which means the real rate was less.

If the economists and dooms dayers are to be beleived, we are going through a period of high interest rates and negative house growth. Add that to inflation at 4% and it is a bad combination.

[Glenis]

I think they mean that there won't be a big difference to them if interest goes up since they are already paying at the top level.

When I working in banking many years ago, 12% was the standard rate and was for many, many years.

[outspoken]

what I don't get

it says
"we're in a better position than most because we have a slightly higher interest rate anyway"

Duh!?

[CJ]

Don't have a bach.

Only own a wife and a car.

So would you sell the wife or the car first? Which costs you the most?

Back to the article, as soon as I saw the headline, I need that the reporter parents should have seen them to private school as they obviously didn't do very well as maths.

[muppet]

Hi Guys

The page that had the article on it, also had a map of NZ showing places that could/should be alright in a downturn, and places that could be decidedly shaky.

Rotorua and Tokoroa were classed as shaky mainly because both places have a high proportion of rental properties.
So when investors get desperate a lot of properties will come onto the market and thus depress values further.

Food for thought.

Regards