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First home grant - Quality investment in CHCH?

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  • Monsterbishi
    replied
    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.

    Leave a comment:


  • Don't believe the Hype
    replied
    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.

    Leave a comment:


  • chcpharm
    started a topic First home grant - Quality investment in CHCH?

    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.
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