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20% deposit needed to buy a house from oct

20% deposit needed to buy a house from oct

Old Jan 17th 2014, 7:35 pm
  #166  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by TommyLuck
Just read on the grapevine that is Twitter* that someone has put down a $20k bond to rent a flat in Ponsonby ....


*so might be bs, but tweeted by someone who is usually right about such things.
what? I can see that as being potentially worrying. hopefully it won't catch on.
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Old Jan 18th 2014, 7:35 pm
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Default Re: 20% deposit needed to buy a house from oct

You can't legally ask for more than 4 weeks rent as bond.
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Old Jan 20th 2014, 8:22 am
  #168  
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Default Re: 20% deposit needed to buy a house from oct

this was already posted by someone else on the forums,but i felt it should be listed on this thread as it again highlights how ridiculous auckland is, in contrast to what some "older" heads may say on here:
http://www.3news.co.nz/Property-Auck...0/Default.aspx
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Old Jan 20th 2014, 10:12 am
  #169  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984
I would argue that there is some logic in what ajwuk has said.

If I was a house owner here and I've suddenly made 700,000 - 1MIL+ NZD as quite a few people have, I'd sell up and move somewhere cheaper. I also agree that houses in Auckland are vastly overpriced, especially for what they are (but I realise of course its more about the value of the land).

With that sort of cash you'd never have to work that hard again.

I agree with Davros, if I'd made a mint on renovating etc, I'd be leaving Auck in a flash.
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Old Jan 20th 2014, 8:20 pm
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Default Re: 20% deposit needed to buy a house from oct

I think the most amazing thing to me is that people are prepared to pay such vast sums of money for what is in most cases a timber clad shed with a corrugated tin roof. Most of these houses will be gone in a hundred years. If wages were showing any sign of increasing then maybe that would balance things a little but that's not happening. Many people say they love New Zealand and will stay at whatever cost because of the scenery and laid back lifestyle. How can it be laidback when you are paying through the nose for a mortgage and having to work long hours to cover it?
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Old Jan 20th 2014, 8:22 pm
  #171  
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Default Re: 20% deposit needed to buy a house from oct

You've hit the nail on the head there.

It's no quality of life to me.
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Old Jan 20th 2014, 8:27 pm
  #172  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by ajwuk
Many people say they love New Zealand and will stay at whatever cost because of the scenery and laid back lifestyle. How can it be laidback when you are paying through the nose for a mortgage and having to work long hours to cover it?
It isn't the same for the whole of NZ. We are not going to be paying through the nose for our mortgage, it will be more than manageable and not much more than the rent we are paying now. We also will not need to work long hours to cover the mortgage.

Just remember that "New Zealand" is a very broad term and although the housing situation is terrible in Auckland it is not the same in different areas of NZ. It would be like basing the whole of the UK's housing market on London. That would be crazy, as is basing the whole of NZ on Auckland.
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Old Jan 20th 2014, 8:32 pm
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Default Re: 20% deposit needed to buy a house from oct

That is fair, hence I have adjusted my messages to focus more on Auckland.
However, CHCH isn't too far behind (mainly due to the 20% deposit rule) and I know WLG can be considered quite pricey.

There are cheap areas in NZ, like there are in the UK. Take Napier for instance, you can get some amazing houses there for less than 300K NZD. However, salaries are a lot lower. If you were to commit to living somewhere like that (which I'd seriously consider one day), you have to accept that regularish trips home to see family or holidays abroad will be very very rare as you'd be lucky to be earning 50K NZD a year there.

I totally agree with Pippa, my quality of life here is worse than what I had in the UK, for the primary reason that I work on average 15-20 hours more a week than I did in the UK (similar type of work). 2-3 weeks less holiday as well.
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Old Jan 20th 2014, 8:56 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984
That is fair, hence I have adjusted my messages to focus more on Auckland.
However, CHCH isn't too far behind (mainly due to the 20% deposit rule) and I know WLG can be considered quite pricey.
Yes, I must admit the 20% rule has thrown a spanner in the works! Having said there are ways around it. We have changed tact slightly and now looking at possibly building a home as we will need 10% deposit for this. Another option is to just buy a cheaper home or one that needs doing up. Not a full on reno, but a house that needs re-decorating through out.

I found this info the other day that may be of help to others:

http://www.ilender.co.nz/home-loans/high-lvr-mortgages

Basically what I am being told on the phone by banks and mortgage providers - it is not impossible without 20%, just tough going.
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Old Jan 21st 2014, 1:36 am
  #175  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984
this was already posted by someone else on the forums,but i felt it should be listed on this thread as it again highlights how ridiculous auckland is, in contrast to what some "older" heads may say on here:
http://www.3news.co.nz/Property-Auck...0/Default.aspx
He is talking absolute gibberish

If he really believes that Christchurch will be the leading player in *waves two fingers Jim Carrey style* affordable housing, then I'll bungy jump off the Auckland tower in my wifes underwear singing One Direction as loud as possible

I've seen a lot of these new areas being built and affordable is not the word I'd even close to describe. Yes there's a lot of builds happening but once again, there's complete failure to mention the 20% deposit ruling. Plus if he thinks affordable is around the $475,000 mark then I give up.

I'll take Mike Greer homes for example, they've got some lovely houses built and ready for sale - around the $525,000. Who on earth has got $112,500 saved up? Not even the rhetoric of them being new builds can help people with low amounts - the rulings inserted. The example of the house I wanted to purchase, $395,000 - agents saying its a new build, all excited.... Get to mortgage adviser - rules suggest otherwise

Plus he's also forgot the dreaded word insurance.

Christchurch may be leading the way for new areas being built - but affordable, uh uh.

I also sort of agree about the costs for mortgages. We're looking at an expensive mortgage but the company going through call it an attacking mortgage. Its one where you pay the minimum amount and then at the end of each pay day, whatever is remaining in your account gets added as a payment free of charge. We may be taking a 30 year loan out but it could be we finish off paying in 18 years time. I think to be fair, its more a cost of living issue - I see a lot mentioned about Australia and their expensive homes but at least the wages are better placed around the cost of living. One thing I admire that country for
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Old Jan 21st 2014, 2:29 am
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Default Re: 20% deposit needed to buy a house from oct

Here you go Davros - another little report on the Christchurch housing

http://www.stuff.co.nz/the-press/bus...y-unaffordable

I love how they're going on about the ones under that price - the ones in the $250-$300k are either in lovely areas such as Linwood, Phillipstown or Aranui, or even better don't have any insurance and future buyers won't even be able to get insurance.
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Old Jan 21st 2014, 5:03 am
  #177  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by Tom1983
If your going through a construction loan or buying section then house build - you'll only need a 10% deposit

I believe Stonewood and Jennian give you ideas on the sort of costs to build your own place. They split their houses into quantities

Are there any new towns or new build areas happening in Wellington?
Quite a few expensive ones in Woodridge near Newlands.
If i was to do this option it would probably be in Kapiti.
I still would prefer to get a built house a 1st move onto the ladder, just need the bank to allow a depoit of below 20%
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Old Jan 22nd 2014, 1:45 am
  #178  
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Default Re: 20% deposit needed to buy a house from oct

Interest rate increases round the corner, great....not
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Old Jan 22nd 2014, 6:43 am
  #179  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by Tom1983
He is talking absolute gibberish

I've seen a lot of these new areas being built and affordable is not the word I'd even close to describe. Yes there's a lot of builds happening but once again, there's complete failure to mention the 20% deposit ruling. Plus if he thinks affordable is around the $475,000 mark then I give up.

I'll take Mike Greer homes for example, they've got some lovely houses built and ready for sale - around the $525,000. Who on earth has got $112,500 saved up?
Tom1983 - agree with the rest of your post that I haven't quoted. What you have said above though is exactly why I have given up. $475,000 is not *affordable property*. When you spat those numbers in Auckland that is seen by most home owners as really cheap. To me that's 230K GBP+ which is a lot of cash in my eyes!

Are you still going for the new build option or are you thinking this is way too much effort for something so simple?
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Old Jan 22nd 2014, 7:09 am
  #180  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984
Tom1983 - agree with the rest of your post that I haven't quoted. What you have said above though is exactly why I have given up. $475,000 is not *affordable property*. When you spat those numbers in Auckland that is seen by most home owners as really cheap. To me that's 230K GBP+ which is a lot of cash in my eyes!

Are you still going for the new build option or are you thinking this is way too much effort for something so simple?
But most folk on here agree a 'living conversion' of about 2.5-3:1, not 2:1 as you suggest. What you get when you bring money over from the UK is pretty meaningless when it comes to actually undestanding the cost of stuff bought here on money you earn here compared to stuff bought there on money you earn there. A $475k house in NZ is roughly equivalent in price to a house in the UK costing £ 160-190k, imo.
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