Beachcombers

Came here with $500.00 to our name, bought a house on a 100% mortgage, down to a single income now (new baby). It's tough at times, but managable, lots of great things to do here for free!

gazzer15

dixllecsic ooops

TeamEmbo

Got fed up when we came over with one Real Estate agent. We told them our limit and asked to be shown anything/everything under that limit. They spent a day showing us everything we couldn't afford and they couldn't shift!

After reminding them of our limit the next day they took us to see a great house. As usual evasive about price till they've shown you round. And yes we liked it. Asked the price only to find it $20k over our very top limit. I asked her what was the point? Her reply? 'Well, you're English aren't you? We thought you could afford a bit more.' I stated again we're not all cashed up poms and asked did she actually have anything on her books she could show us in our price range or not. She then proceeded to perform the text book sales patter of 'being your friend' and started to compliment me on my appearance and 'oh my what a beautiful engagement ring' blah blah blah.

We left there and went straight to another Real Estate agent. The lady there was brill. We again made it clear what we wanted but this time went down the window display with her and pointed out all the ones we wanted appointments to see and don't bother showing us anything else.

It's difficult when you first get here and you try and be polite and rely heavily on them giving you the best advice and being helpful. We quickly learned though that sometimes you have to be as firm and assertive as a Kiwi to get what you want.

Like many others we are now back on a 25 yr 95% mortgage. We could never have afforded one like this back in the UK. We'd hit a ceiling there of not being able to make enough to move up to a detached or a 4 bedroom despite both working and being on far higher salaries than we are here. Our NZ house has a rumpus room of an equivalent size to the entire ground floor of our previous uk house! Detached, 4 beds and came with a hot tub in the garden. So I don't care much how big the mortgage is or how many years. I love my house and my new life.

lardyl

free advice here:
dont come to NZ to be better off financially.............timewise maybe but finanacially, erm no
unless of course you are an illegal, already flat broke, running away from debt, or land a super dooper job, all of which are pretty unlikely.

ditto, but ours is $350 a week

Nerine

Ain't that the truth!

So where are all these threads about people being nearly mortgage free?
Where did the myth come from that this was possible in the country where the ratio of house prices to income is the worst in the world? I'd say it was the exception rather than the rule.

Nerine

Yep, so long as you don't need to put petrol in your car to do them.

smiges33

after looking through threads for the last 3 months ive yet to work out how you lot can afford at all to live, let alone buy a house. if you are an average jo bloggs it certainly doesnt sound if you will be able to afford anything. im also amazed that the housing market has'nt crashed down to a more realistic level. and they keep going on about the housing market in the uk. it certainly doesnt look as if my 40 000k will go far when i leave the forces in 3 years time.

TeamEmbo

You just have to be very good at juggling! IMHO the difference for me is that I don't mind the mend and make do bit here as this is where I've chosen to be. I happened to be in the UK simply because I was born there. I got so disillusioned with the rat race, stress, working just to pay more tax and treading water and it was just because of circumstance or birth. I have chosen to be in NZ. I love our new way of life, I love my house, the scenery, the outdoors life, we actually live healthier, happier lives and as a consequence I don't mind the scrimping and saving to be here. I hope that makes sense; sometimes I'm not good at putting it into words.

dlmckay

I'm totally cacking my pants - our 7.45% mortgage comes off in August 08. In six month's time, I have to find another $1,000 a month to service a 9.7% loan!

TeamEmbo

Why 9.7%? Can't you go onto another fixed rate?

dlmckay

Do you know of another? That's currently what bankdirect are offering for a $250K loan over 23 years....

9.7% = $2,898.95 (one year fixed)
8.7% = $2,734.57 (five years fixed)

Not a lot in it really... we currently only pay $1,923 a month...

westiepom

That is about the cost of a current fixed rate. I'm worried too as we'll be coming off a 6.85 % and have even thought about selling the house and going back to " stress free " renting. Probably not a good idea in the long term though.

Only last week my hairdresser said to me that I probably didn't have a mortgage as I'd moved from the UK. Couldn't help giving a big sigh before going into my usual explaination of moving almost 7 years ago before UK house prices went silly and so didn't come over with much...... I still don't think she believed me tho !

Nerine

I think prices are already on their way down in NZ, as more and more fixed rates drop out the housing market is going to continue to slow down and then start to fall backwards.

If the predicted recession hits in America there could be hard times ahead for everybody, may not be a good time to be have large loans. I wonder if NZ will follow America's lead and drop interest rates soon, they must be some of the highest in the world.

That's an awful amount to have to find every month DLM! could you extend the term of your mortgage and bring the payments down a bit?

dlmckay

I could extend the time out... but we first got a mortgage 8 years ago... and each time we renew, it seems to always be for 25 years... I want to pay this blimmin' thing off before I retire!

TeamEmbo

We've recently changed. I don't have the paperwork to hand but pretty sure ours is either 8.85% or 8.95% for 2 yrs with ANZ. Sometimes you can get the rate agreed in advance with the proviso you take up the offer within a set time, say 60 days, so if you find a good rate in advance you could perhaps get that set up before August. Personally I wouldn't go for a 5 yr fixed rate as things can change dramatically in that time. 2 years suited us.

Have you looked to see what rates PSIS, ANZ and Kiwibank are currently offering?