Curlu

Hi everyone
Just joined the forum today but have been reading posts with interest for a few weeks now. We're considering the move from UK to NZ as there is a role that has come up in Hamilton for my husband. We're not sure how to play the property situation if we make the move. Appreciate that renting is advisable for the first 6 months but we're not sure that we want to remain in Hamilton long enough to buy property....but we have a dog and it looks like a lot of rental properties won't accept pets, which will significantly reduce our option....but more worryingly the weekly rentals for the type of property we need seems to be in the region of £450 a week which is 3/4 of what my husband expects to take home.......so our query is .....is it cheaper to buy??? We would have £200 000 equity but are not sure of the mortgage interest rates and whether as new arrivals we could get a mortgage? Any feedback/advice/experiences welcome.
Thanks
Pamela

Bo-Jangles

Sleep escapes me tonight and the two options of a night time vigil at A&E or $90 to see an emergency doctor sees me here at this unearthly hour.

There was a recent article (and many others before it) that say renting is cheaper then buying.

http://www.nzherald.co.nz/business/n...ectid=10819579

If you're not planning to stay in the job or Hamilton you would be foolish to buy a place for a short term proposition, as the cost estate agents and legal fees of buy and selling would likely cover your rent for a considerable time.

Having your equity earning interest in the bank should help a good bit with interest earnings to offset the cost of renting, just shop arround for the best that you can get.

I'm not au fait with house prices in Hamilton but pretty sure they're nowhere near Auckland prices and you could buy a half decent house for $400k without the need for a mortgage.

For mortgage interest I guess you'd be looking at floating rate approx 5.6% Fixed for even two years does not provide much saving and after that it just gets higher the further out you go. Kiwibank were recently undercutting the market and offering 4.99% fixed for six month but not sure what conditions are attached.

Curlu

Thank Bo-Jangles....hope you feel better soon :-(

I guess we'll need to explore the return on a $400000 investment to see how this will offset the rental costs....anyone got any idea of savings interest rates?

Bo-Jangles

Maxed up again on more painkillers and antibiotics I am feeling a bit better than I was a couple of hours ago.

You would probably be wise to spread any large sums of money around a bit and not keep it all in one basket.

Rabodirect do some good offers to new customers. However, I would watch them with caution just now. They were for a long time the only AAA rated bank in NZ but got downgraded to AA late last year and have had some more dramas this past week. I believe Standard & Poors pulled their rating completely at one point but re-instated it after some negotiations with the parent.

http://www.rabodirect.co.nz/interest..._top-nav-rates

Justcol

current mortgage rate are around 5.6 to 6 % depending on the type of mortgage.
have a look here to work out what you can afford
https://www.asb.co.nz/calculators/bu...FWaXpgodVxzFbg

MrsFychan

I'd be a bit concerned about pay if you say $450 is 3/4 of what your expected income it likely to be. we rented a property at $350 a week, no heating, no double glazing so have just bought but now our weekly outgoings on $400K mortgage is nearing $600 a week.
Food can be expensive, schools you need to pay a "voluntary" sum for each term, insurance on property (you have to have it if you get a mortgage) and general day to day living I couldn't see the figures adding up for you. forgive me if I have misread the situation.

BEVS

Um. You OK BJ or have you overdosed.

Mrs Pointer

I agree with Mrs Fychan. Our rental just outside Welly is $400 a week for a total shed (albeit one with a nice view and it does have a heater..less said about the mould the better). You will get a rental with dogs (and it's worth asking even if they say no). But that was the same as we were paying for a similarly crap rental in Scotland after we sold our house.

to get a decent house here, with dogs you will have to buy or build I reckon. We've decided to build (I wasn't paying full whack for a house that still didn't have central heating) and the mortgage will be more than the rent.

You do have a big deposit though...so you can work it out based on on a 6% mortgage rate.

Your weekly shop will be about 50 quid more, your petrol will be less.

Curlu

Thanks for this. The income quoted is on my husbands anticipated income alone, as I expect to take some time to get my qualifications recognised and will then seek work too. We don't have kids, so just the 2 or us and the dog. It looks like we could be mortgage free if we chose to buy after an initial period. I'm thinking his calculations must be wrong.....

Thanks again
Pamela

Curlu

Yep... he got it wrong....he failed to realise that pay was fortnightly and thought that the fortnightly pay was what he would earn monthly!!!! Phew, looks much better on the new figures!!!

concretepump

hi there, are also some motels, that take pets as well not sure if theres any in hamilton area, we used one in tauranga when we were there we had two cats, it will cost a bit more than a rental, but if you there for a couple of months should be able to get some money off , hope this helps