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20% deposit needed to buy a house from oct

20% deposit needed to buy a house from oct

Old Aug 21st 2013, 10:48 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984 View Post
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?
Hi folks, I cannot believe that NZ is still advertising itself as a fab place to raise a family. A lot of people in England look on the lifestyle over here as being perfect. If only they knew. We knew our dreams would not come true after being here a month! and believe me.. Our dreams were not unrealistic. people should be warned about the property and low wages. It is hard to get negative info about NZ when living in England. Sadly I only found this forum after we moved here. The country is giving a lot of people no other choice than to return home. They will happily take your money to get into the country and once your here that's it..
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Old Aug 21st 2013, 10:50 pm
  #17  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by moonie2011 View Post
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
I'm guessing (which is just as accurate as any expert opinion ) that prices will continue to rise as people panic before the deadline. Then there will be a very mild stagnation before they take off again. Probably a good time to buy is in the Spring.
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Old Aug 21st 2013, 11:00 pm
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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.
I know what you mean, our house is being sold on November 27th in England and it's kind of put us in a backward step

The wife has talked me round it mind and to be fair gave some good advice. She argued we rent until we become citizens and then decide whether to buy here or buy in England. Hopefully things may have changed in 6 years time

The market may have died down by then or changes for the better have happened

We may also be in a better situation in 6 years time

I was all ready to say tarra NZ but as the wife is really happy here, she's worked her magic and given a decentish explanation.

Plus after seeing the costs for bedding, furniture etc in this country, it'll probably take 5 years just to save up to get one of those. Or I could fall for the silly trap and pay double on finance
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Old Aug 21st 2013, 11:30 pm
  #19  
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Default Re: 20% deposit needed to buy a house from oct

Just saw this btw:
http://www.nzherald.co.nz/residentia...ectid=10914144
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Old Aug 21st 2013, 11:39 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by pippalonghorn View Post
It is hard to get negative info about NZ when living in England.

Is that true? Seems to me that many British people are much more aware of NZ's pros and cons than say, 20 years ago.

Perhaps some people think the worst won't happen to them, or they think that people who are having problems are just some isolated cases... or they're so taken with the idea, a vision, of living over there, with the beaches and the outdoors, they overlook some of the very real drawbacks. Or perhaps, for various reasons, they're immune and protected from them.

As a Kiwi, though, I'll tell you this. Unlike Brits who can be realistic, even self-deprecating, about the UK's shortcomings, most Kiwis would never dream of honestly admitting their country's assorted problems to foreigners. You won't get the full picture from most Kiwis, that's for certain.
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Old Aug 22nd 2013, 12:15 am
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Default Re: 20% deposit needed to buy a house from oct

Just saw this btw:
Glad I've not got their repayments - perhaps the kids can take over the mortgage
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Old Aug 22nd 2013, 12:28 am
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Default Re: 20% deposit needed to buy a house from oct

Back to topic...

When we arrived here 27 years ago we landed with nothing in our pockets or the bank as we had been moving around Europe, renting and having a high old time.

Within a year (to the day) we moved into our own home. Mortgage rates at that time were 19% (yes nineteen - it's not a typo) and we struggled for years. Let's face it, buying a home anywhere has never been easy.

If you are selling a home in the UK and don't do anything silly like moving to an expensive Auckland/Wellington/Christchurch suburb, it should be possible to find a decent and affordable property.

Granted, things are more expensive here due to our remoteness so you have to decide what is important in your life.
The weather? It's no better or worse than the UK.
Cost of living? Higher no doubt.
Security? We don't have anyone bombing the public transport system (though I sometimes am tempted myself) and for the most part you can walk the streets safely and sleep soundly in your bed.

Most people's lives involve compromise. Decide what you want out of life and put up with the bits that don't fit.

Rant over.

Pete
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Old Aug 22nd 2013, 12:36 am
  #23  
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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.
its because of the free trade agreement with china, part of the deal is unrestricted access to our property market to wealthy asian buyers who come to the house auctions in auckland and can buy several houses. In auz it is restricted by capital gains taxes and they can't buy existing properties and can only build new ones. This new 20% deposit will only help them as less and less kiwis can afford to buy.

Last edited by shocked kiwi; Aug 22nd 2013 at 12:47 am.
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Old Aug 22nd 2013, 12:38 am
  #24  
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Default Re: 20% deposit needed to buy a house from oct

This will be a temporary measure because:
1. It will only reduce demand while people to scramble to increase deposits. There is no material change in the supply demand situation.

2. Banks will circumvent rules where possible with cross securitisation between properties.

3. Second-tier lenders will step in and finance deposits allowing people to circumvent the rules.

4. Lenders will look at blurred lines. What is the difference between, for example, business lending and a mortgage?
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Old Aug 22nd 2013, 4:40 am
  #25  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984 View Post
But this is in Auckland, yes I realise that people have to live there, Auckland is comparable to London where a studio/one bed flat could sell for over £300k yet I couldn't sell my 5 bed country house in Devon for the same price.
There are cheaper parts of NZ buy houses
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Old Aug 22nd 2013, 6:10 am
  #26  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by moonie2011 View Post
But this is in Auckland, yes I realise that people have to live there, Auckland is comparable to London where a studio/one bed flat could sell for over £300k yet I couldn't sell my 5 bed country house in Devon for the same price.
There are cheaper parts of NZ buy houses
Please stop comparing London to Auckland.

London has a population of over 8 million. It is also the capital city.
Auckland has a population of 1.5 million. It is not the capital city.

You are better off comparing Birmingham to Auckland.

As I said previously in another post, there are many more affordable houses in London than Auckland. I can easily get a 3-bed house in London for 250K GBP or under AND it will have good public transport options into the city. Trying to buy a 3-bed house in Auckland with good transport links into the city is near impossible given the current panic in the market.

I can understand you comparing Sydney to London (as that has a population of over 4.5 million), but not Auckland.

Please look at the following:
a) http://www.nzherald.co.nz/business/n...ectid=10881687
b) http://www.bloomberg.com/news/2013-0...mortgages.html

I quote:
"Prices in New Zealand’s largest city have already surpassed four of New York’s five boroughs with an average of NZ$768,664 in July, the equivalent of $617,852. While short of Manhattan levels, prices are rising 13 percent a year."

It is nothing but ignorance and greed by homeowners and the national government that has caused this. Sadly without the decency of the old British system, where the wealthy had a responsibility for those worse off than them - greed is being allowed to spiral out of control. Thatcherism killed this off in comparison with American economics and the situation is only going to get worse.
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Old Aug 22nd 2013, 8:30 am
  #27  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984 View Post
It is nothing but ignorance and greed by homeowners and the national government that has caused this. Sadly without the decency of the old British system, where the wealthy had a responsibility for those worse off than them - greed is being allowed to spiral out of control. Thatcherism killed this off in comparison with American economics and the situation is only going to get worse.
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Old Aug 22nd 2013, 10:48 am
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Default Re: 20% deposit needed to buy a house from oct

I truly despair. Viewed a house in Glen Eden (West Auckland) on the weekend. Tiny place that had obviously had a rush job renovation. There was nothing redeeming about it. Driveway needed replacing, house needed more work. Some idiot has paid $585k for it at auction.
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Old Aug 22nd 2013, 11:20 am
  #29  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984 View Post
Please stop comparing London to Auckland
London is the most densely populated city in the UK as Auckland is the most densely populated city in NZ. The both have large international populations. The both have overheated housing markets fuelled by the disproportionate amount of people who want to live in them rather than elsewhere.

Other than one having the title of Capital city and one not (although Auckland has previously held that title) they are very comparable.
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Old Aug 22nd 2013, 9:44 pm
  #30  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by marblep View Post
I truly despair. Viewed a house in Glen Eden (West Auckland) on the weekend. Tiny place that had obviously had a rush job renovation. There was nothing redeeming about it. Driveway needed replacing, house needed more work. Some idiot has paid $585k for it at auction.
I'd feel ripped off paying $58k to live in Glen Eden, it's bloody awful.
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