• Login:
Welcome, Register Here
follow PropertyTalk on facebook follow PropertyTalk on twitter Newsletter follow PropertyTalk on LinkedIn follow PropertyTalk on facebook
Results 1 to 4 of 4
  1. #1
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

    Default Buying house 'more than twice as dear as renting'

    Buying house 'more than twice as dear as renting'
    5:00AM Tuesday July 22, 2008
    By Simon Collins

    Buying a house is now almost two and a half times as expensive as renting, according to figures to be presented at a seminar today.

    Property Investors Federation vice-president Andrew King says a 25-year mortgage for 90 per cent of the cost of the country's median-priced house, worth $345,000 last month, would currently cost a new home-buyer $745 a week, including rates, maintenance, insurance and an allowance for other costs.

    By contrast, the national median rent last month was only $305 a week.

    He will tell an Australasian Housing Institute seminar on affordable rental housing in Waitakere today that the ratio of mortgage costs to rents is higher in New Zealand than in five similar countries.

    "Right now the gap is enormous, but it's always been there because New Zealanders prefer to own their own property rather than rent, so they are always willing to pay a premium rather than renting," he said yesterday.

    "At the moment a first-home buyer could save more than $20,000 a year and rent for, say, three to five years, then they'll have $60,000 to $100,000 extra to put towards a deposit.

    "They can probably also take advantage of KiwiSaver, so there is a real incentive at the moment to rent."

    Like many pundits, Mr King predicts that average rents will rise as people realise that they are better off renting.

    But a Crockers Real Estate analysis of tenancy bonds lodged with the Department of Building and Housing suggests that rents are rising only slightly, particularly in Auckland where they were already well above the national average.

    The average rent for a three-bedroom house in Auckland rose by 3.8 per cent from $420 a week in July last year to $436 last month, roughly in line with the general inflation rate of 4 per cent. Nationally, the three-bedroom average rose slightly faster, from $320 to $340, or 6.25 per cent. The average jumped by 8.3 per cent in Wellington, but actually fell by 6.7 per cent in Christchurch.

    Crockers marketing manager Karen Coleman said it was hard to generalise about whether it was better to rent or buy because everyone's situation was different. "If someone was totally cashed up, why rent? But if you are going to borrow ... "

    www.housinginstitute.org/events/events.php

    http://www.nzherald.co.nz/section/1/...ectid=10522789
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  2. #2

    Default

    Crockers marketing manager Karen Coleman said it was hard to generalise about whether it was better to rent or buy because everyone's situation was different. "If someone was totally cashed up, why rent?

    Jeez
    Where do they find these spin doctors (can think of other titles for them)
    No debate It is cheaper to rent at present!
    If you are cashed up does not change anything
    Make money by renting for less than your money earning interest while prices still decline
    No brainer Karen

  3. #3
    Join Date
    Mar 2008
    Location
    Auckland Wide
    Posts
    1,244

    Default

    Quote Originally Posted by waxhead View Post
    Jeez
    Where do they find these spin doctors (can think of other titles for them)
    No debate It is cheaper to rent at present!
    If you are cashed up does not change anything
    Make money by renting for less than your money earning interest while prices still decline
    No brainer Karen
    Just a thought, imagine a place where banks start to get into trouble with paying back capital you have invested. Wouldn't you better owning some land which may bounce back in value. If we did not have banks I guess you could use government bonds, what if they got into trouble? Probably not?

    Imagine if you couldn't trust anyone with your money, people would start buying safes and security companies might do quite well I guess.
    Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
    My Website
    Be informed - register for our free monthly newsletter


  4. #4
    Join Date
    Jan 2008
    Location
    North Shore, Auckland
    Posts
    1,079

    Default Well...

    Quote Originally Posted by mortgage broker View Post
    Imagine if you couldn't trust anyone with your money, people would start buying safes and security companies might do quite well I guess.
    ...alternatively, there's always:

    http://www.customhouse.co.nz/

    Damn, they should start payin me for this!


 

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Buying or renting a new home in Central Auckland
    By Pyrie in forum Property Investment (NZ)
    Replies: 13
    Last Post: 02-02-2017, 07:19 PM
  2. Renting out my own home and buying another house for us.
    By kjoshi in forum Property Investment (NZ)
    Replies: 3
    Last Post: 05-12-2015, 03:56 AM
  3. New to Auckland, hate renting - Buying house using equity
    By Psilan in forum Property Investment (NZ)
    Replies: 34
    Last Post: 29-01-2013, 03:42 PM
  4. Buying a home but renting in the 1st years
    By Razor in forum Property Investment (NZ)
    Replies: 25
    Last Post: 03-08-2011, 04:08 PM
  5. Unusual situation for considering buying vs renting
    By Doughboy in forum Property Investment (NZ)
    Replies: 14
    Last Post: 20-03-2011, 12:31 AM
  6. Renting now half the cost of buying a house
    By muppet in forum General (NZ)
    Replies: 3
    Last Post: 22-12-2007, 11:01 PM
  7. Renting vs. Buying: The Realities of Home-Ownership.
    By Glen in forum World in General
    Replies: 2
    Last Post: 24-09-2007, 10:31 AM
  8. Climate change effecting buying and renting decision
    By PublicAngel.com in forum Property Investment (UK)
    Replies: 2
    Last Post: 05-02-2007, 12:42 PM
  9. Gap between Buying vs Renting Narrows
    By donna in forum Property Investment (UK)
    Replies: 0
    Last Post: 27-10-2005, 02:05 PM
  10. Finance for NZ'er living overseas
    By roadrunna in forum Finance, legal and tax (NZ)
    Replies: 7
    Last Post: 10-01-2004, 02:19 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •