Go Back  British Expats > Living & Moving Abroad > New Zealand
Reload this Page >

20% deposit needed to buy a house from oct

20% deposit needed to buy a house from oct

Old Aug 20th 2013, 10:28 pm
  #1  
Account Closed
Thread Starter
 
Joined: Mar 2013
Posts: 184
shocked kiwi is an unknown quantity at this point
Default 20% deposit needed to buy a house from oct

This in the paper and in the news today about 20% deposits for houses now required....

http://www.nzherald.co.nz/business/n...ectid=11111719

How the changes will work
Three properties currently on the market
Three-bedroom home in Clendon Park
Asking price: $350,000
Previously: 10% deposit of $35,000.
Under new rules: Minimum 20% deposit of $70,000

Three-bedroom home in Browns Bay
Asking price: $658,000
Previously: 10% deposit of $65,800
Under new rules: Minimum 20% deposit of $131,600

Three-bedroom townhouse in Campbells Bay
Asking price: $980,000
Previously: 10% deposit of $98,000
Under new rules: Minimum 20% deposit of $196,000
shocked kiwi is offline  
Old Aug 20th 2013, 10:46 pm
  #2  
BE Enthusiast
 
Mark Smith's Avatar
 
Joined: Jan 2012
Location: St Albans, Christchurch
Posts: 581
Mark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond reputeMark Smith has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Not strictly true. Banks are limited to how many high LVR they can sell "In a speech today, governor Graeme Wheeler announced that banks would have to restrict new lending with loan-to-value ratios (LVRs) of more than 80 per cent to no more than 10 per cent of the dollar value of their new housing lending flows". http://www.stuff.co.nz/the-press/bus...rtgage-lending
Kiwi Bank have also signalled they will be allocating their high LVR loans towards first time buyers not investors.

Last edited by Mark Smith; Aug 20th 2013 at 10:52 pm.
Mark Smith is offline  
Old Aug 20th 2013, 10:50 pm
  #3  
BE Forum Addict
 
barnsleymat's Avatar
 
Joined: Sep 2009
Location: Yorkshire
Posts: 1,111
barnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond reputebarnsleymat has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Thank the lord we bought our house before these new rules started, I reckon we'd have gone home if we couldn't have bought an house.

Renting wasn't for us.
barnsleymat is offline  
Old Aug 20th 2013, 11:02 pm
  #4  
jmh
BE Forum Addict
 
jmh's Avatar
 
Joined: Jan 2009
Location: South Auckland
Posts: 2,228
jmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond reputejmh has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Conversely, it might help slow down the housing market making properties more affordable. That's what the Reserve Bank is hoping for, but I personally don't think that will happen. It depends a bit on where the investor buyers are really coming from. Local with a high mortgage or foreign with cash to invest.

On selfish grounds, if it leads to a housing crash that would be great for me. I can sell my UK property and buy a nice place here.
jmh is offline  
Old Aug 20th 2013, 11:28 pm
  #5  
Account Closed
 
Joined: Nov 2011
Posts: 755
Tom1983 has a spectacular aura aboutTom1983 has a spectacular aura aboutTom1983 has a spectacular aura about
Default Re: 20% deposit needed to buy a house from oct

From what i've allegedly heard, Westpac and Kiwibank will not be complying with this. They'll still be open for the small deposits but you gotta have a good credit rating. That won't be a problem

The smaller deposits will still be around, just be more swayed allegedly to FTB's from October onwards.

Some people have been saying this may put investors off. If it means rental market decreases and rates go down, then good. Sadly I doubt this'll happen around Christchurch due to the housng shortage and floods of workers coming to help with the rebuild.
Tom1983 is offline  
Old Aug 21st 2013, 12:19 am
  #6  
BE Enthusiast
 
lisamct's Avatar
 
Joined: Nov 2009
Location: Auckland
Posts: 617
lisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Ive spoken to a couple of mortgage brokers about this recently (having just taken out a mortgage, 95% one at that) Banks will continue to be officially free to give out whatever finance they want but, the percentage of LVR loans to other finance has been drastically reduced so its going to become much more difficult to secure these loans. Its already hard to find banks willing to give out loans over 90% (and those that do add on a pretty hefty low equity payment fee) so now its just going to become almost impossible. Kiwisaver and Welcome Home Loan changes will make a bit of a difference but these will now also require a 10% deposit rather than the 5% they do presently so again 10% is going to be the minimum.

These advisors don't believe this ruling will make any difference to the present issues in the housing market. Its not the first time buyers, the people asking for these high LVR loans, that are paying stupid amounts of money for property, its investors and second home buyers who already have the required deposits in place anyway. All its going to do is pretty much take the small percentage of first time buyers almost completely out of the market.
lisamct is offline  
Old Aug 21st 2013, 5:22 am
  #7  
BE Forum Addict
 
TommyLuck's Avatar
 
Joined: Aug 2012
Posts: 1,213
TommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond reputeTommyLuck has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

I suppose we'll have to see how this pans out in time.

Hopefully it'll result in keeping interest rates low.
TommyLuck is offline  
Old Aug 21st 2013, 6:46 am
  #8  
Account Closed
Thread Starter
 
Joined: Mar 2013
Posts: 184
shocked kiwi is an unknown quantity at this point
Default Re: 20% deposit needed to buy a house from oct

its scary - maybe i'll spend my house deposit on a world trip - hellava lot more fun then a massive mortgage.
shocked kiwi is offline  
Old Aug 21st 2013, 8:18 am
  #9  
BE Enthusiast
 
moonie2011's Avatar
 
Joined: Apr 2011
Location: Wellington, NZ
Posts: 572
moonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to beholdmoonie2011 is a splendid one to behold
Default Re: 20% deposit needed to buy a house from oct

So if you have a decent deposit with this new info is it best to buy or wait in case prices start falling?

We are thinking about whether to buy or not and quite frankly it's giving me a headache, every time we come to a decision we hear something else that causes us to doubt again
moonie2011 is offline  
Old Aug 21st 2013, 8:19 am
  #10  
BE Enthusiast
 
lisamct's Avatar
 
Joined: Nov 2009
Location: Auckland
Posts: 617
lisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond reputelisamct has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Originally Posted by shocked kiwi View Post
its scary - maybe i'll spend my house deposit on a world trip - hellava lot more fun then a massive mortgage.
I was about at the stage of spending mine on gin and shoes when my house turned up!
lisamct is offline  
Old Aug 21st 2013, 9:42 am
  #11  
BE Enthusiast
 
davros1984's Avatar
 
Joined: Nov 2010
Location: Was Auckland-NZ, Now Wales
Posts: 685
davros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Originally Posted by shocked kiwi View Post
This in the paper and in the news today about 20% deposits for houses now required....
YES! GREAT NEWS! Now even more Kiwi's and regular skilled workers have a miniscule chance of ever being able to afford to buy their own house (unless they inherit serious cash).

Well done John Key, National voters will love you even more than before as only the rich and greedy can now buy. Homeowners must be so happy.

I am so over this $h1f - so my new approach is to stop caring and just enjoy renting and living here whilst it still happens. I will buy one day, just sadly its unlikely to ever be in NZ.

Anyone with any ounce of reality or sense currently residing in the UK and thinking of moving here full-time: FORGET IT unless you're rolling in it or wanting to come here on a long-holiday.
davros1984 is offline  
Old Aug 21st 2013, 12:47 pm
  #12  
Forum Regular
 
Joined: Feb 2013
Posts: 259
marblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Originally Posted by shocked kiwi View Post
its scary - maybe i'll spend my house deposit on a world trip - hellava lot more fun then a massive mortgage.
I agree!!
marblep is offline  
Old Aug 21st 2013, 12:49 pm
  #13  
Forum Regular
 
Joined: Feb 2013
Posts: 259
marblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond reputemarblep has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984 View Post
YES! GREAT NEWS! Now even more Kiwi's and regular skilled workers have a miniscule chance of ever being able to afford to buy their own house (unless they inherit serious cash).

Well done John Key, National voters will love you even more than before as only the rich and greedy can now buy. Homeowners must be so happy.

I am so over this $h1f - so my new approach is to stop caring and just enjoy renting and living here whilst it still happens. I will buy one day, just sadly its unlikely to ever be in NZ.

Anyone with any ounce of reality or sense currently residing in the UK and thinking of moving here full-time: FORGET IT unless you're rolling in it or wanting to come here on a long-holiday.
I agree. This is not the country I grew up in. Too ****ing expensive.
marblep is offline  
Old Aug 21st 2013, 12:52 pm
  #14  
Just Joined
 
Joined: Aug 2013
Posts: 4
Dominic_Oldman is a jewel in the roughDominic_Oldman is a jewel in the roughDominic_Oldman is a jewel in the roughDominic_Oldman is a jewel in the rough
Default Re: 20% deposit needed to buy a house from oct

It pains me to say it but it's hard to see why anyone would want to put themselves in the uncertainty that coming to NZ brings compared to Australia.

We have been here just over a year, moving from the North West of England. I travelled extensively as a young man & met many a Kiwi & Aussie. I loved the laid back Kiwi attitude & getting here was a landmark moment in our families life. I never thought of Australia until now.

I have a decent job & earn the median wage, my wife works part time which fits around the kids & their schooling.

But......there is no chance we'll ever be able to get on the property ladder, we're in our 40's & saving 10% was always going to be difficult. But now it's 20% & then meeting the repayments is impossible.

Why is NZ intent on breaking itself & it's people ? I've spent most of the last few days looking at the price of rents/mortgages in Melbourne & comparing these to the salaries on offer. To be honest it's a no brainer & staying here is a decision that is being rapidly taken out of my hands.
Dominic_Oldman is offline  
Old Aug 21st 2013, 10:32 pm
  #15  
BE Enthusiast
 
davros1984's Avatar
 
Joined: Nov 2010
Location: Was Auckland-NZ, Now Wales
Posts: 685
davros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond reputedavros1984 has a reputation beyond repute
Default Re: 20% deposit needed to buy a house from oct

Originally Posted by Dominic_Oldman View Post
It pains me to say it but it's hard to see why anyone would want to put themselves in the uncertainty that coming to NZ brings compared to Australia.

We have been here just over a year, moving from the North West of England. I travelled extensively as a young man & met many a Kiwi & Aussie. I loved the laid back Kiwi attitude & getting here was a landmark moment in our families life. I never thought of Australia until now.

I have a decent job & earn the median wage, my wife works part time which fits around the kids & their schooling.

But......there is no chance we'll ever be able to get on the property ladder, we're in our 40's & saving 10% was always going to be difficult. But now it's 20% & then meeting the repayments is impossible.

Why is NZ intent on breaking itself & it's people ? I've spent most of the last few days looking at the price of rents/mortgages in Melbourne & comparing these to the salaries on offer. To be honest it's a no brainer & staying here is a decision that is being rapidly taken out of my hands.
Great first post Dominic. You are right, if you have an aim of being a homeowner or any of that family/setting stuff (as well as needing to work) - NZ really isn't the place to be anymore. Sure- there will be the odd exception, i.e. you can get a job somewhere like Invercargill or the west coast where property is still affordable. But in reality, if you are skilled - 95% of people will end up in Auckland or WLG (or perhaps CHCH). In those areas its just too much. As you say, the country has already made the decision for many of us.

Can you further elaborate on your findings with regards to Melbourne?
davros1984 is offline  

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2022 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.