Own or rent??

[Big Dave]

so how many of you bought your own homes, off your own back (no assistance at all) with a mortgage value of greater than 5 times your annual income?

nope. parents helped. and it was only double.

Like I said times have changed - I never would have thought about a consortium of my mates to get a place - nowdays I would - properly drafted agreements etc - get a few lads together and buy something would be an option now.

I know of one brother and sister with a beautiful big homestead that they each have a wing of what they couldn't have afforded individually.

I suspect when you are my age there will be young blokes saying - did any of you....10 times greater than...

time for that best seller.

[The_Dover]

time for that best seller.

i'm working on it!

[The Stranger:Me]

so how many of you bought your own homes, off your own back (no assistance at all) with a mortgage value of greater than 5 times your annual income?

Nah, the sharemarket was excellent pre 87, those were the days.

I recall Muldoon running around like Henny Penny telling everyone the share market was going to crash, it's going to crash. That was 81. Had to laugh when it finally did and he goes I told you so. What impeccable timing.

However since then I never listen to the nay sayers or experts (oh you listen, but don't trust them). Do your own research and make your own decisions. Trust your own judgement when it comes to money.

[sels1]

Daily consider returning to the UK to find a better quality of life - NZ costs far too much. Wife doesn't want to go coz this is her home.

Try looking at options outside of Auckland where prices are lower (Dunedin may appeal to your Scottish background ) Its like living in London compared to other parts of the UK.

And I've just bought again after a couple of years renting. We sold the 4bd house we had owned for years (kids left) and rented for a while , figuring out what to buy next and waiting for the market slump. It didnt really, altho it did slow a bit. Fortunatly we had a rental as well that was still apreciating and we cashed that up to buy the new place.
My opinion - buy a house any way you can. Just dont over commit and do some market research first. If you have to downgrade your car/bike/stereo whatever to do so, its normally worth it in the long run.

[RantyDave]

[property in NZ] So why is it so fucking overpriced?

Location, location, location.

You can have a quarter acre in the arse end of beyond for a dollar fifty, it's the fact that it's in Remuera that proves to be the problem. It has had value added by virtue of being close to things.

True story: My better half used to teach skiing in Vail, an astonishingly posh ski resort in Colorado. This place was used as a training ground for troops in the second world war and, after the war, a guy called Peter Siebert returned ... said "let's build a ski resort here" ... raised a million bucks and, along with some investors, now basically owns a town. "The Town of Vail incorporated". A section outside Vail will now cost you four million US.

http://www.vailrealestate.com/proper...opertyID=18292

Now *that* is property investing for men.

So. Stop bitching and go turn a couple of hundred acres round the volcanic plateau into the world centre for debauchery or something.

Dave

[Beemer]

I own my own, a place in the country and wouldn't give it up for anything.
I'd rather be lining my own pocket than someone elses'. Its all about where you buy though, and I for one would rather cut my balls off than live in AK.

Same here, but you'll have to insert the female equivalent for the last line!

We bought three acres in the country north of Levin in 2003 and love it. Peace and quiet in bucketloads, good neighbours (well, they will all be good in four weeks time when the psycho Brethren next door move out!) and a feeling of security that renting doesn't provide. It's nice knowing we can't get booted out because the landlord suddenly decides to sell, and you feel better about spending money on the house and garden when you are the ones who will get the longterm benefits of it.

I wouldn't want to buy a place to rent out though, heard too many horror stories about bad tenants to be that mad!

[Lou Girardin]

Having seen both sides of property investment, I won't touch it, despite have the spare income, a deposit and plenty of equity.
But if it works for some - great.

[Finn]

Property is hardly BP's core business is it? And most of the Viaduct and Auckland waterfront it built on reclaimed land.

You're right. Pie's are their core business.

Well it was easy to reclaim land back in 1900. The RMA wasn't around. I can't think of and land that has been reclaimed since then for residential development.

[The_Dover]

I can't think of any land that has been reclaimed since then for residential development.

except for by the fuckin maoris

[Finn]

except for by the fuckin maoris

You racist prick!

I like your new signature cunt.

[Garry.W]

Same here

And a lovely spot it is too!! I feel the need to contribute to this.

First off, I own my own home, for the most part anyway (wife and bank are partners I think). I've bought and sold four times since I originally built my first home in Palmerston North in 1992. Some of us remember the days of plus 26% interest rates - I sure do. I'm not wealthy by any stretch of the imagination but could not have got where I am today without owning that first home, even though it was a period of scrimping and saving all the time, many meals of baked beans on toast. However, to those who think paying rent is a waste of money, get over it. Rent is not a waste of money, it's payment for a commodity (your accommodation) in just the same way as you spend money on food and clothes and motorcylces (hopefully). People often refer to rent as dead money in comparison with paying off a mortgage, but only becuase they don't appreciate the fact that home ownership usually makes one wealthier or they are not yet in a financial position to do anything about it. Today we do not have the same socio-economic climate as our parents or grandparents. The labour market is much more mobile, jobs for life are not considered the norm nowadays and there are times where households have to move a number of times, often between regions, just to stay in employment. Renting is often a better economic decision in these circumstance because everyone knows wealth being built though equity only occurs over a long period of time, i.e. the more often you buy and sell the property you live in over a short term - the poorer you are going to get. More and more people are choosing to rent as the cost of buying or building a home, the maintenance and rates bills and all those other expenses associated with home ownership are things that people don't have to worry about it. Having said that, there are a lot of 20-30s who would probably like to buy a home but have so much debt, though a variety of student loans and the ridicullously easy to get HP and Credit faciltiies these days, that banks just will not lend to them. I know a few who whinge about how hard it is these days to raise a deposit on a mortgage but have the nice 40" Plasma and the new Beema park in their rental garage and who hop off to Australia for a few weeks every now and then. So they'll stay renting or living with Mum and Dad for the moment. The probelm here in New Zealand is that the private rental sector is not exactly geared up with long-term tenure options, like they have in Europe and the US, to make renting a desitrable opiton -you have the hassle of short term tenancies, often one after the other. The average lenght of tenure for a household in the rental sector is around 3 years. At the end of the day, what I'm trying to say is that for some people renting is a good option, but many studies have shown that the benefits of home ownership are considerable and often more than just that of wealth creation. Granted, people who own their home do tend to do better financially over their lifetime compared with those who rent, but they also tend to participate more in society. Home is a "place to stand" and I'm convinced that owning your own helps with your everyday wellbeing, that's why I own my own home.

And to anyone waiting for houses to get "cheaper" - at your peril I say, as one financial guru says, "doesn't matter where the market is, sooner you get into it the better, and if you're not in it, get planning".

[The Stranger:Me]

I know a few who whinge about how hard it is these days to raise a deposit on a mortgage

Some may not be aware (or care) that some banks will do 101% loans. The extra 1% being to cover legal and costs.

So saving for a deposit may not be that hard.
You do have a higher rate on the portion over 95% and you have to cover the cost of insuring the loan (which is often the case with loans over 80% anyway) and you still have to meet the didposable income tests etc, but, particularly if you have 2 incomes, it is still an option.

[Motu]

Yeah,I remember the 26% interest years,that was when we got our first home! Helen Clark was Minister of Housing,and some incentives were put in place to get people into their own home.I had tried a couple of times for a Housing Corp mortgage,but always got turned down.So in those days ('87,'88?) you needed $3000 deposit,the Goverment put in a 2nd mortgage which had to be paid back in 3 yrs I think....Housing Corp was the 1st mortgage.We borrowed the deposit off my mother,and then paid her back the first year...this satisfied her of our dedication,and she gifted us a driveway.We got the loan as owner/builder,so got progess payments - but we didn't even own the section! We paid for the section with the first progress payment,and put the poles in.Living on the edge is the Motu way....,so always one payment behind,buying materials when we hadn't been paid for it.No one paid the start up money back,so they were incorpatated into the one mortgage.Tough times - the only beer I drank was when someone left their glass unattended.But I still owned 10 bikes,some things I just don't give up.

Back in Auckland inbetween another house sale,we were living in 3 caravans in a static housing market,plenty of time to study our options...we were looking at small acreges within 100km of the city.But then my mother got terminal cancer and I put my life on hold to see her through her last days - I came out of it to see my business had suffered terminaly too,and the housing market had gone wild...I was in deep poo,but don't regret a minute spent with my mother.My sizable deposit was now a pitance,I couldn't even get a loan with it.But it could buy me a complete 3 bdm house in Huntly.I feel I painted myself into a corner getting to Huntly....but don't regret it one bit - I wanted to get just exactly this far out of Auckland,I am where I need to be at this point in my life.Pity about the details,but life would be boring without the messy bits....

[ManDownUnder]

===bloody quote thingy ain't working...
STR said... and yes i am jealous of my mates who have 2 years to pay on their mortgage. Grass is always greener, different strokes etc etc
===

Mate - I had mine carved out in 8 years.. paid off... gone burger save the last 30k which was destined to be squared away in the next 12 months...
I was lucky - I got an education (on your list ) and a good paying job.

I used those to my advantage, did some more learning on how money works and went after what I wanted. I still am. I love my net worth now - and this is only 10 years out of the blocks.

1/2 my net worth came from equity gains in housing. I'm looking forward to more - in about 5 to 8 year's time. I'll have hit 7 figures by then.

Those that know me will know the balanced life I lead. I don't go hard on the town, or own the newest bike/phone/car/whatever, but I'm not skint either and enjoy some fun along the way.

Money's just a measure - that's all it is. How clever were you when it came to using the system to your advantage? That's it - pure and simple - like me... except for the pure bit)

MDU raving away into the sunset...

[The_Dover]

MDU raving away into the sunset...

are you pissed again nige?