Own or rent??

[Lou Girardin]

Entirely disagree - 2 years worth of rent in AKL can be $30-50 grand - that would be much better in yer own equity regardless of the cycle.
Apart from that living with a landlord just blows arse. Property inspections, having to ask before scratching your nuts, the whole real estate agent deal.

OK, what do I know after 11 years as a land shark. You could save that 30 - 50 grand by buying well and at the right time. Conversely you could lose half your equity when prices fall.

[Squeak the Rat]

So long as the gain exceeds the pain for the life of the investment.

Plan to keep it, and look at it over 10 years or so. It looks better then.

But if I save hard for the next two years I can considerably shorten my mortage time and cost. OR buy something better. (assuming captial gains stay low over the short term).

Big Dave, I get what you're saying about the landlord thing. Especially the chance you could get evicted due to sale etc. But then again you don't have to worry about rate increases, don't give a shit when the hot water cylinder stops working etc which I reckon goes a little way to evening it out.

Seriously though, I just cannot afford a mortgage and continue to have a life. And I choose not to commute for over 1 hour per day. Bring on the mortagee sales!

[ManDownUnder]

But if I save hard for the next two years I can considerably shorten my mortage time and cost. OR buy something better. (assuming captial gains stay low over the short term).

Unless prices go up... or interest rates go up...

Don't get me wrong - I applaud your approach. It sounds like you've done your numbers and I think you're as likely to be right as I am. I prefer to act from a position of certainty, rather than hope for a future day being better.

Seriously though, I just cannot afford a mortgage and continue to have a life. And I choose not to commute for over 1 hour per day. Bring on the mortagee sales!

Good luck man... you'll make it. Don't be scared to put in rude offer on houses either. $300,000 house with a vendor depserate to sell? Staple a cheque for $22,500 to an offer for $225,000 and hand it to them there and then.

If you're up shit street $22,500 in the hand is a nice thing to have...

["D" FZ1]

We moved out of Auckland 20 years ago and would never go back. You can buy so much more for your hard earned dollar in other parts of the country and not have all that Bullshit congestion to put up with.

[Big Dave]

I moved to New Zealand with my Kiwi wife for the 'Quality of life'.

Go to the top of a high hill - look around at the beauty of this place, look at the sky and take a deep breath.

Then look at the state of the world blowing itself up and remind yourself that being on a beautiful remote island in the middle of a vast ocean where people mainly get on is the hankering of billions.

[Fub@r]

I read an article a few years back which stated the following:

Owning a property and paying a mortgage you would end up with value "A" when you retire

If you were to rent and put the difference between the rent and what a mortgage would cost in to the bank you would end up with value "B"

Values "A" and "B" would end up being pretty similar.

The catch is that those who rent wouldn't put the difference aside and bank it as there is nothing compelling people to do so therefore they have would end up with a lower amount of cash versus the equity someone who earn from owning a home.

As for me I'm looking to buy again by the end of this year as putting up with landlords, agents, rent increases and general insecurity of renting is really starting to rub. Also friends of mine that purchased since I sold my last house 5 years ago have raced up the ladder in terms of asset value/worth. Also if I were to delay getting back in to the market any longer it might get out of my reach especially in Auckland

[Big Dave]

OK, what do I know after 11 years as a land shark. You could save that 30 - 50 grand by buying well and at the right time. Conversely you could lose half your equity when prices fall.

I had 15 years in new home sales and marketing. Started as a draftsman. I also worked property on the gold coast - but I don't tell many people that.

Times are harder and the course plays rougher than when we were playing - but the stories of success are more numerous than the failures.

[Crazy Steve]

Some people are living rent free...

Like this Guy I know...Renting a House in Mt Wellington paying $320pw...

Got behind in his rent by 6mths (true story) Because the propety is own by a local Council, And who ever in the Council that should of been keeping an eye on the rent arrea's WASN'T!!!

Finally they caught up with him...Problem was when he 1st moved in he used a Bullshit name....

So he Dee Camped!!!!!!!

Owing $8500ish.....

Crazy Steve...

[ManDownUnder]

We moved out of Auckland 20 years ago and would never go back. You can buy so much more for your hard earned dollar in other parts of the country and not have all that Bullshit congestion to put up with.

Agreed - but then your hard earned dollar invested in Auckland property is usually working harder for you than anywhere else in the country.

Each to their own... but give me another 10 years and I'll be out of Aucks too... rich and comfy!

[judecatmad]

Ok, another question.

How many of you could actually afford, on a single income, a decent house in a decent area of Auckland in today's market?

We bought just a month ago - could only afford it by going 100% finance and cos we'd moved to Wellington where prices are definitely lower.

No way, even on 2 decent incomes, that we would EVER have been able to afford to buy a 4 bedroom house on a decent section in Takapuna (where we used to live when we lived in Auckland). And god help us when we have kids and go to one income for 12 months..........

I have no idea how singletons manage to buy houses in Auckland - the prices up there are just silly. It's got to all collapse at some point, surely? If you've bought for investment, then that's when it all turns to custard, but if you've bought to live in a place and keep it as your home, then no worries - just keep on doing what you were doing (and hope your job doesn't move!).

Owning your own place is just the best

[McJim]

Go to the top of a high hill - look around at the beauty of this place, look at the sky and take a deep breath.

Then look at the state of the world blowing itself up and remind yourself that being on a beautiful remote island in the middle of a vast ocean where people mainly get on is the hankering of billions.

Yeah but Scotland was like that too - I'm here coz I love my wife and respect her wishes. My parents are getting on too and I miss them. If the house prices were more in line with salaries it wouldn't be so bad - I could afford to visit them. As it is it's killing us. Toying with the idea of selling, putting the equity from sale in high interest savings and renting until the housin bubble bursts and then buying a house for a proper price.

[NinjaBoy]

Is the millstone of a 20+ year mortgage and being tied to one location worth it?

You'll find that the average stay at one house in AKL is 7 years. Then they sell and upgrade or something taking the profit with them.

[Big Dave]

Big Dave, I get what you're saying about the landlord thing. Especially the chance you could get evicted due to sale etc.

Yeah happened to me - after a long period of ownership in oz we rented when we first arrived - and got a notice to quit because he sold the place. that meant 2 moves in a month because we subsequently bought the first place we saw.

When you own it - if you want a 'better' HWC - you just install one.
If you need to you can borrow against yer equity - raising money is also a lot easier if you have bricks and mortar as security.

[NinjaBoy]

[QUOTE=judecatmad;729748] If you've bought for investment, then that's when it all turns to custard, /QUOTE]


It only turns to custard if you have to sell in lower market. Investing in property is a long term thing and you have to be able to wait out the dips

[ManDownUnder]

You'll find that the average stay at one house in AKL is 7 years. Then they sell and upgrade or something taking the profit with them.

As CaN alluded to... keep the house, borrow against the equity and use that cash to buy another place... and now you own TWO appreciating houses...

One of which now has tenants in it who are kindly contributing to your financial situation. My personal approach is to not rent a property in the bottom 25% (or 50%) of the market as the tenants are the more "fly by night/trash the place" types.

Buy your first house, and make it your home - do it up, make it comfortable... and help it appreciate. You then have a more valuable house, worth more to rent out, it'll be looked after better, earn more, and you'll have more equity to borrow and play with.