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

Buy your house with Sterling

Buy your house with Sterling

Old Jan 21st 2007, 5:10 pm
  #1  
Forum Regular
Thread Starter
 
Joined: Aug 2005
Posts: 68
Dave in Auckland will become famous soon enough
Default Buy your house with Sterling

From today's Herald;

NZ houses among least affordable
Email this storyPrint this story Monday January 22, 2007
By Anne Gibson

New Zealanders are paying some of the world's highest house prices compared to our incomes and Auckland ranks alongside London as one of the world's most expensive housing markets.

The third Demographia International Housing Affordability Survey released today showed it takes Aucklanders 6.9 years of full annual earnings of $57,500 to afford the $395,000 median house price.

Last edited by Sue; Jan 25th 2007 at 1:19 am. Reason: Bulk of article removed. Please read rule 6 of the site rules. Thanks.
Dave in Auckland is offline  
Old Jan 21st 2007, 5:19 pm
  #2  
Forum Regular
Thread Starter
 
Joined: Aug 2005
Posts: 68
Dave in Auckland will become famous soon enough
Default Re: Buy your house with Sterling

EDIT: And don't forget that NZ interest rates are MUCH higher than in the UK.
So your mortgage will take a much larger chunk of your take home pay.
Dave in Auckland is offline  
Old Jan 21st 2007, 8:26 pm
  #3  
Maz
 
Joined: May 2005
Posts: 5,763
Maz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond reputeMaz has a reputation beyond repute
Default Re: Buy your house with Sterling

Being in the US, definitely not good news for selling NZ to my American hubby...
Maz is offline  
Old Jan 24th 2007, 5:34 am
  #4  
Forum Regular
 
minky's Avatar
 
Joined: Apr 2006
Location: Brookby
Posts: 235
minky is just really niceminky is just really niceminky is just really niceminky is just really niceminky is just really niceminky is just really niceminky is just really niceminky is just really niceminky is just really nice
Default Re: Buy your house with Sterling

Originally Posted by Dave in Auckland View Post
From today's Herald;

NZ houses among least affordable
Email this storyPrint this story Monday January 22, 2007
By Anne Gibson

New Zealanders are paying some of the world's highest house prices compared to our incomes and Auckland ranks alongside London as one of the world's most expensive housing markets.
When you walk and they know your English watch the price go up too!
minky is offline  
Old Jan 24th 2007, 8:17 am
  #5  
Forum Regular
Thread Starter
 
Joined: Aug 2005
Posts: 68
Dave in Auckland will become famous soon enough
Default Re: Buy your house with Sterling

Yup that's true, and the reality is even worse. Houses in Auckland, Christchurch and Wellington are all less affordable than London.
Dave in Auckland is offline  
Old Jan 24th 2007, 8:30 am
  #6  
BE Forum Addict
 
Joined: Feb 2005
Location: Back in NZ & loving it - living in Orewa
Posts: 1,183
lapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond reputelapsed kiwi has a reputation beyond repute
Default Re: Buy your house with Sterling

Originally Posted by Dave in Auckland View Post
Yup that's true, and the reality is even worse. Houses in Auckland, Christchurch and Wellington are all less affordable than London.
Funny then that greater London scores 9th on that survey whilst AKL is 21st and CHC and WGN don't feature at all. Care to add some figures to your statement?
lapsed kiwi is offline  
Old Jan 24th 2007, 6:23 pm
  #7  
Forum Regular
Thread Starter
 
Joined: Aug 2005
Posts: 68
Dave in Auckland will become famous soon enough
Default Re: Buy your house with Sterling

Originally Posted by lapsed kiwi View Post
Funny then that greater London scores 9th on that survey whilst AKL is 21st and CHC and WGN don't feature at all. Care to add some figures to your statement?
Because the survey just divides average house price by average salary and doesn't take the interest rate into account.

Last edited by Dave in Auckland; Jan 24th 2007 at 7:37 pm.
Dave in Auckland is offline  
Old Jan 27th 2007, 10:47 am
  #8  
Forum Regular
Thread Starter
 
Joined: Aug 2005
Posts: 68
Dave in Auckland will become famous soon enough
Default Re: Buy your house with Sterling

OK, the following show;

Median house price, Median household income, Two-year fixed mortgage rate, Monthly mortgage payments, and in red the Percentage of income paid out to service a 95% mortgage

Sydney A$520,300 A$61,200 7.3% A$3,567 70%
Auckland NZ$395,000 $57,500 8.35% $2,995 62%
Vancouver Can$448,800 Can$58,100 6.4% Can$2807 57%
Christchurch NZ$291,000 NZ$48,400 8.35% NZ$2206 54%
New York US$477,700 US$66,600 6.12% US$2901 52%
Wellington NZ$331,000 NZ$61,400 8.35% NZ$2510 49%
Greater London £198,732 £28,802 5.4%. £1116 46.5%
Dublin euro354,000 euro61,900 4.1% euro1,710 33%

This is about affordability not house prices.
Dave in Auckland is offline  
Old Jan 31st 2007, 10:49 pm
  #9  
TeamEmbo
 
TeamEmbo's Avatar
 
Joined: Jan 2007
Location: Rangiora
Posts: 1,557
TeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond reputeTeamEmbo has a reputation beyond repute
Default Re: Buy your house with Sterling

Originally Posted by Dave in Auckland View Post
OK, the following show;

Median house price, Median household income, Two-year fixed mortgage rate, Monthly mortgage payments, and in red the Percentage of income paid out to service a 95% mortgage

Sydney A$520,300 A$61,200 7.3% A$3,567 70%
Auckland NZ$395,000 $57,500 8.35% $2,995 62%
Vancouver Can$448,800 Can$58,100 6.4% Can$2807 57%
Christchurch NZ$291,000 NZ$48,400 8.35% NZ$2206 54%
New York US$477,700 US$66,600 6.12% US$2901 52%
Wellington NZ$331,000 NZ$61,400 8.35% NZ$2510 49%
Greater London £198,732 £28,802 5.4%. £1116 46.5%
Dublin euro354,000 euro61,900 4.1% euro1,710 33%

This is about affordability not house prices.
Does it take into account the type of housing? What does £198k buy in Greater London, compared to $221k in CCH? I mean if you can get a family home with garden in a nice location in CCH compared to an apartment you can't swing a cat in, or a mid-terrace you need metal shutters on in Greater London, isn't it worth paying an extra 7.5% of your income for a decent family home??
TeamEmbo is offline  
Old Feb 1st 2007, 12:01 am
  #10  
Here in Dunedin
 
southerner's Avatar
 
Joined: May 2003
Location: Dunedin
Posts: 1,975
southerner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond reputesoutherner has a reputation beyond repute
Default Re: Buy your house with Sterling

Originally Posted by TeamEmbo View Post
Does it take into account the type of housing? What does £198k buy in Greater London, compared to $221k in CCH? I mean if you can get a family home with garden in a nice location in CCH compared to an apartment you can't swing a cat in, or a mid-terrace you need metal shutters on in Greater London, isn't it worth paying an extra 7.5% of your income for a decent family home??
There are swings and roundabouts with what you get for your pound or dollar. In general kiwi homes have more garden, more indoor-outdoor flow, but are less well insulated. In some ways its horses for courses.

I reckon we got twice the house for half the price when we moved out 3 years ago, but we were downsizing cities (from London to Dunedin). For many kiwis housing affordability is a really big issue, and with the house market very prone to immigration flows, its only going to get worse.
southerner is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


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

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.