Header Ad Module



No announcement yet.

First home grant - Quality investment in CHCH?

  • Filter
  • Time
  • Show
Clear All
new posts

  • First home grant - Quality investment in CHCH?

    How to invest my time and money?

    To begin this I will give some background, I am in the fortunate position to have enough in my kiwi saver and in personal savings account to be able to apply for the full amount of a Kainga Ora first home grant in Christchurch city ($500,000 on 5% deposit).
    I am a (soon to be) university graduate and have already signed a contract to start full time work on salary for the year 2021 on modest pay, and will be living in Christchurch for the year. I have never preciously lived in Christchurch before but have visited multiple times, but not enough to know the suburbs well enough to buy a home (except for Riccarton).

    My question is should I look at purchasing a house this year so that I can live in it, not pay rent, and also have my friends rent help pay the mortgage. OR, should I wait one year, sign a year long rental contact with friends, and decide where (i.e. suburb, street...) to buy a house.

    Long term goal would be to turn it into a rental once purchased and hold it, also to accumulate more rentals over time.

    I have read a few property investment books such as Graeme Fowler, NZ real estate investor secrets and 20 rental properties in 1 year. And also the New Zealand Property Guide.

    Sorry for the wall of text! I appreciate any and every reply I get!

    TDLR; Buy this year, or rent for 1 year then buy.

  • #2
    This is simply a financial calculation... what rent would you pay? What income would you generate from boarders?

    Broadly speaking it is better to buy a property and have flatmates sharing the cost.

    You say the medium-long term plan is that the property is a rental so buy something that makes sense as a rental and treat it as a rental - you living in it is short term after all. Speak to your accountant about the benefits destructibility of costs - which will only apply once you are not living in it.

    If you can buy a property and qualify for the grants, meet the obligations of the grants and have flat mates help you cover the cost you're on track to getting ahead.


    • #3
      Property prices are bonkers at the moment, normally sales stagnate over winter and peak during summer but people returning to New Zealand as a result of Covid-19 have houses going for well over RV.

      That's not to say that there aren't bargains to be had out there at the moment, just that they're fewer and father between.