Lenmil

With the house prices going up sharply in NZ, does this mean that more people will not move as they cannot afford a house now. 2 years ago if we had sold our house in the UK we could, but not now it seems. We were hoping to be mortgage free, but with the houses so expensive now and wages not very good it's doubtful we can do it. What is every one's opinion on this.

kiwi_child

I think you will find this is a problem in OZ too. Here in Perth a pretty basic home in an average area is approaching the $500,000 mark. I realise that there is a perception that wages are much lower in NZ compared to OZ, but IMO that really relates to professionals more than any other group.

Oz has among the highest taxation in the western world. We have teachers and other degree educated, and in some cases, post-graduate educated people who just cannot get on the housing ladder. It is quite possible to be a single professional here and not earn enough to get mortgage finance.

One of my university tutors was on contract work agreements to 2 or 3 universites and still couldn't get into a home of her own! Reason: Not enough income, not classified as "permanent fulltime". This is what the casualisation of the workforce and the downward pressure on wages and salaries has done in OZ. I imagine it's probably similar in NZ, but can't say for sure.

PS: How are you and the family doing back in Newcastle? You still in the jewellery trade?

phil01

I don't think it will stop people moving to NZ...to be fair who can be mortgage free in the UK? It would be nice to be mortgage free whereever you live but I had a whopper of a mortgage in the UK and will have a whopper of a mortgage over here ...thats life.

Lenmil

[
PS: How are you and the family doing back in Newcastle? You still in the jewellery trade?[/QUOTE]

Hi things are a little better in the "Toon" but still tough. My trade here is shrinking fast so there is not much work at all. Many people i know have moved out of the trade or gone broke due to high costs of rent and rates etc. The kids want to go back to NZ really bad. Still stuck here for the moment. But thanks for asking, how are you all doing?

Eastbound

Hi things are a little better in the "Toon" but still tough. My trade here is shrinking fast so there is not much work at all. Many people i know have moved out of the trade or gone broke due to high costs of rent and rates etc. The kids want to go back to NZ really bad. Still stuck here for the moment. But thanks for asking, how are you all doing?[/QUOTE]

hi Lenmil
I mainly post in the Canadian forum but remember when you came back form New zealand is there any way you could get back to NZ if thats where you want to be hope you manage to get back there one day if thats where you all want to be
best of luck

kiwi_child

Hi things are a little better in the "Toon" but still tough. My trade here is shrinking fast so there is not much work at all. Many people i know have moved out of the trade or gone broke due to high costs of rent and rates etc. The kids want to go back to NZ really bad. Still stuck here for the moment. But thanks for asking, how are you all doing?[/QUOTE]

I guess if you can get the cash together, your visa/PR should still be valid.

There has been some move on the NZ govt on the housing thing I read on the net. I think they are offering mortgages that are 100% and/or some setup where they become partners with you, holding x amount of equity, which lowers the overall cost of finance and leaves you an option to buy out their stake later on. The ministry of housing website should be able to provide more info.

You might need to look at reskilling yourself for another line of work, like thru a polytechnic course in UK or NZ. A lot of trades and skills have become redundant as companies get virtually all labour intensive stuff done offshore when they can.

I've been taking some time off for myself, but am going to NZ for xmas this year to see family and friends, so looking forward to that. A move from Perth also looks to be in the pipeline in the not too distant future as well

Take care mate,
Hope all works out for you and family

Christina

kiwi_child

NZ Homeloan Help for low income earners:

http://www.welcomehomeloan.co.nz/

Beachcombers

Not everywhere is unaffordable. And you do not need to living in the middle of nowhere.

http://www.trademe.co.nz/Trade-Me-Pr....htm?key=26783

Plenty more in the 250-300K price range.

Marlborough has NZ's lowest unemployment rate, but is dominated by the wine industry, so most jobs revolve around it.

mingusdynasty

28 jobs in Marlborough listed on trademe. 2000 jobs listed on Auckland.

So, for most people, Marlborough may as well be in the middle of the wopwops, no matter how cheap the housing is.

I think once people overseas realise that the kiwi quarter acre dream is over then less people will come to NZ. It's ironic in a way as it was migration which drove the property boom in the first place.

Amber and Chris

We got a shock at the prices of rentals (haven't dared look seriously at buying - not a realistic option at the mo) when we got here a week ago! You get much less for your money and we saw some real horror stories!

We're now paying more than we can afford but are comfy for now.

Felt very stupid at not realising that with renting you do not get any appliances - where we were before in Canada there was laundry room with big washer and driers, plus all flats have cooker and fridge - no exceptions. Now we are looking at buying or renting these things...more cash!

Suppose it all depends on your income and savings - with pounds you are always going to be better off and in a relatively good situation for buying over here.

southerner

I was going to say something similar - most people are asking the question the other way around - are so many equity rich people coming to NZ making the housing market a no-go?

Supposedly that was why the government has just decreased the immigration quotas, to help dampen the house market.

teambwr47

Why is the dream over?

I very easily found plenty of sections of 2-3 acres for sale within an hours drive of auckland for the equivalent of £70k-90

First of all plots of that size are just not readily available in the uk anymore and if they are you could, in a nice area expect to pay ten times that for a site with planning etc.

Not sure what the 'kiwi quarter acre' dream is or was but for most the dream must still be very alive i'd imagine.

kiwi_child

It is/was a suburban house on a quater acre block of land (room for a decent sized vege garden, kids to play in, fruit trees, etc). A lot have subdivided their properties in Auckland I hear and built an additional property on them for an income stream (renting or selling it). I think for sometime now the average property size in suburban Auckland has become 1/8th of an acre.

kiwi_child

Good move in the current climate I'd say. Australia should consider doing the same. Either that, or place some regulation on the housing and finance markets.

southerner

Subdivision has happened to a greater or lesser degree in all the main centres of NZ. Its a shame, but then so too would it be a shame if people had to commute for the best part of an hour, and more our cities sprawled out into more and more countryside.

Still the dream lives on, and is available for those who can afford it. The proportion of detached houses, and the average size of 'sections' is still probably greater than you'd find anywhere in Europe, and probably most places in the world.