Oh for goodness sake, just make the country more expensive to live why not!
Jul 17th 2013, 9:06 am
#31
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Re: Oh for goodness sake, just make the country more expensive to live why not!
Hi Mark,
So yes you guys made a similar decision by the sounds of it. That is now the issue we have here in Auckland and it seems that its only going to get tougher to buy a house here (i.e. going to need a 100K NZD deposit at the very least). In the UK the government has recently introduced a number of schemes to help first time buyers (and encourage it) and... mortgages now require less of a deposit, i.e. around 10%. So I can buy a 100K GBP house with a 10K deposit - which seems much more reasonable.
I had asked the question, but then deleted it. For all of you: if you were living somewhere where it was near-impossible to buy a house, would you stay or would you leave and go somewhere more affordable?
So yes you guys made a similar decision by the sounds of it. That is now the issue we have here in Auckland and it seems that its only going to get tougher to buy a house here (i.e. going to need a 100K NZD deposit at the very least). In the UK the government has recently introduced a number of schemes to help first time buyers (and encourage it) and... mortgages now require less of a deposit, i.e. around 10%. So I can buy a 100K GBP house with a 10K deposit - which seems much more reasonable.
I had asked the question, but then deleted it. For all of you: if you were living somewhere where it was near-impossible to buy a house, would you stay or would you leave and go somewhere more affordable?
I'd do that with a job and i'd do the same with an house
Yes we had a property back in London which we've still got, but we're selling to get a nice lump of deposit, originally hoping to bring it over and put it on a nice size house. Now we'd be lucky to get a garden shed
Thanks for the notice Spacecake about Leeds. That's interesting since that's commutable from a few places we could easily get a decent house.
I had a look at Australian bank mortgages to see what they're doing across the Tasman. It seems they're still having the 90% LTR mortgages and nothing is mentioned about the federal Australian bank clamping down on mortgages. Then again, the house prices probably explain why
M and M explained my reasons why I do not want to remain chucking money away.
Jul 17th 2013, 9:24 am
#32
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Re: Oh for goodness sake, just make the country more expensive to live why not!
The difference between property here and in the UK is that there is much more choice in the UK. There are still opportunities to buy much, much cheaper than in Auckland. Here, you either get a two bed unit, or a three bed house and they are all of similar price. Like the coffee, the price is the same no matter the cafe. It think the gloss is coming off NZ now as folks realise that it is such an expensive place to be and prices are rising every week.
Bought soap yesterday in P&S which was $1.79 cents last week, now $2.6, and this sort of thing goes on all the time. Personally, I think the fame is now not worth the candle.
Bought soap yesterday in P&S which was $1.79 cents last week, now $2.6, and this sort of thing goes on all the time. Personally, I think the fame is now not worth the candle.
Jul 17th 2013, 11:49 am
#33
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Re: Oh for goodness sake, just make the country more expensive to live why not!
Hi Tommyluck, the first house I provided a link to was within London itself - not hampshire. Its between Stratford and Barking (Plaistow) . For a city that has over 8 million people and over 20 million people commuting into London every day - that is incredible value. Doesn't tempt me, but if I was a first time buyer in London, that is exactly what I'd be looking for.
Also the tube journey from Plaistow to Liverpool street (a classic stop for IT workers) is 15-20 minutes.
I think you got confused with me talking about Surrey and Hampshire - that's a separate issue. If Surrey is out of budget, Hampshire is considerably cheaper etc.
Here I live in Beach Haven/Birkdale, my commute on the bus to the viaduct is about 30 minutes. If I drive its about 1 hour (so thats the same time as commuting from Fleet or Farnborough).
A house we wanted here had a CV of $370,000, it sold at auction for $552,000. Likewise a house just up the road from us, small 3-bed house that my friend bought, he got it for $460K. The house that sold yesterday, CV of $390K sold for $610,000.
Even if prices are comparable, Auckland is far bigger than London and has a fraction of the population. London is the proper city experience plus you get incredible public transport. It is seriously wrong here for properties to be as expensive or more expensive as they are in London.
Also the tube journey from Plaistow to Liverpool street (a classic stop for IT workers) is 15-20 minutes.
I think you got confused with me talking about Surrey and Hampshire - that's a separate issue. If Surrey is out of budget, Hampshire is considerably cheaper etc.
Here I live in Beach Haven/Birkdale, my commute on the bus to the viaduct is about 30 minutes. If I drive its about 1 hour (so thats the same time as commuting from Fleet or Farnborough).
A house we wanted here had a CV of $370,000, it sold at auction for $552,000. Likewise a house just up the road from us, small 3-bed house that my friend bought, he got it for $460K. The house that sold yesterday, CV of $390K sold for $610,000.
Even if prices are comparable, Auckland is far bigger than London and has a fraction of the population. London is the proper city experience plus you get incredible public transport. It is seriously wrong here for properties to be as expensive or more expensive as they are in London.
Last edited by shocked kiwi; Jul 17th 2013 at 11:56 am.
Jul 17th 2013, 11:53 am
#34
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Re: Oh for goodness sake, just make the country more expensive to live why not!
The bubble will burst in nz they reckon and then there will be bargains. There is no way that some of the houses here in Akl are worth what they are selling for. Apparently 200k is what they should be selling for if inflation is taken into account and wages - not the 800k that they are getting. It is all wrong. All it will take is another GFC.
I will not buy a house that's more than 4x my salary - simple as.
Jul 17th 2013, 12:00 pm
#35
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Re: Oh for goodness sake, just make the country more expensive to live why not!
I really hope the bubble bursts, the prices are just outright ridiculous and as horrible as I might sound, these people who have taken out outrageous mortgages on not a lot of income - well.. sadly they will learn the hard way.
I will not buy a house that's more than 4x my salary - simple as.
I will not buy a house that's more than 4x my salary - simple as.
Last edited by shocked kiwi; Jul 17th 2013 at 12:06 pm.
Jul 17th 2013, 12:26 pm
#36
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Re: Oh for goodness sake, just make the country more expensive to live why not!
I really hope the bubble bursts, the prices are just outright ridiculous and as horrible as I might sound, these people who have taken out outrageous mortgages on not a lot of income - well.. sadly they will learn the hard way.
I will not buy a house that's more than 4x my salary - simple as.
I will not buy a house that's more than 4x my salary - simple as.
I think it's quite scary to think what will happen if the bubble does burst.
Having said that we originally were going to sell our flat in London in 2007 right before GFC. We held on until last year and got the price we would have in 2007 when property was at it's peak. I know London is very different but the market to a certain degree did bounce back (and probably didn't drop too far in London).
But I hate to think what will happen if it all goes boom in Auckland.
Jul 17th 2013, 12:28 pm
#37
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Re: Oh for goodness sake, just make the country more expensive to live why not!
Its true, some friends of mine have freaked out that they will never get a house unless they buy one now - they finally succeeded but have 80% of their wages going into a mortgage, they have not much left for food and bills and will not have a holiday for the next 20 years while they are paying off the house. Also can't have kids as could not survive on one income.
Jul 17th 2013, 12:59 pm
#38
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Re: Oh for goodness sake, just make the country more expensive to live why not!
Let me tell you a true story.
A few months back, we went to ASB bank to try and borrow 400K NZD to try and buy a house that was valued at 370,000 NZD (of course it was going to auction). Even if we had turned up with 400K we wouldn't have won as it went for well over 500K.
Anyway... back to the point. At the time, we had savings of approximately 20K NZD. Our combined monthly take home-pay each month is around 10-10.5K. The mortgage repayments were approximately $2,100 a month - so around 20% of our total monthly income (very reasonable right?). Our current rent is just shy of $2,000 a month.
ASB said they wouldn't let us borrow more than 300K and weren't sure that we could afford the payments, despite having been in our jobs for over 2 years and bringing home that sort of money a month.
They told us to come back in 6-12 months and try again. They also said that most of their mortgage clients were millionaires.
So I find it crazy that people are having to give up 80% of their income on a mortgage, how on earth were they allowed to take that mortgage out in the first place??????
A few months back, we went to ASB bank to try and borrow 400K NZD to try and buy a house that was valued at 370,000 NZD (of course it was going to auction). Even if we had turned up with 400K we wouldn't have won as it went for well over 500K.
Anyway... back to the point. At the time, we had savings of approximately 20K NZD. Our combined monthly take home-pay each month is around 10-10.5K. The mortgage repayments were approximately $2,100 a month - so around 20% of our total monthly income (very reasonable right?). Our current rent is just shy of $2,000 a month.
ASB said they wouldn't let us borrow more than 300K and weren't sure that we could afford the payments, despite having been in our jobs for over 2 years and bringing home that sort of money a month.
They told us to come back in 6-12 months and try again. They also said that most of their mortgage clients were millionaires.
So I find it crazy that people are having to give up 80% of their income on a mortgage, how on earth were they allowed to take that mortgage out in the first place??????
Jul 17th 2013, 1:00 pm
#39
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Re: Oh for goodness sake, just make the country more expensive to live why not!
sorry but 80% of their wage is just ridiculous and fool hardy. what about when the interest rate rises will it go to over 100% of their wage.
No children because they can't afford it, hope they never wanted them in the first place. That's not living that's existing and sad
No children because they can't afford it, hope they never wanted them in the first place. That's not living that's existing and sad
Jul 17th 2013, 1:02 pm
#40
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Re: Oh for goodness sake, just make the country more expensive to live why not!
you get 10 - 10.5 thousand take home a month? 
Jul 17th 2013, 1:06 pm
#41
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Re: Oh for goodness sake, just make the country more expensive to live why not!
Yes - do not take that the wrong way, I am only saying this as I genuinely feel quite helpless with regards to the housing situation. That is typically what we bring home. It varies slightly as my partner is a nurse so depending on her shift patterns (and hours of work) it varies.
Last edited by davros1984; Jul 17th 2013 at 1:25 pm.
Jul 17th 2013, 1:12 pm
#42
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Re: Oh for goodness sake, just make the country more expensive to live why not!
bloody hell in the wrong jobs here. but I do find it ridiculous with those wages the banks aren't ripping your arms off to give you a mortgage. we have a $400,000 mortgage and no where near and I mean no where near that monthly income. I just approached a mortgage broker and told them how much I wanted to pay a month and how much mortgage could I get. I have always used this approach as not interested in what our salaries can get only interested in what I want to spend a month on it
Jul 17th 2013, 1:15 pm
#43
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Re: Oh for goodness sake, just make the country more expensive to live why not!
obviously we would have to have the salaries to cover the amount we want but I have never wanted to hit us with huge bills that wouldn't allow us to have a little bit of enjoyment.
Jul 17th 2013, 1:23 pm
#44
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Re: Oh for goodness sake, just make the country more expensive to live why not!
Getting back onto the original point of this thread, with the min deposit going up to 20% and the average house price being: 649,945, this means a minimum deposit of $129,989. If people think that's a) fair or b) achievable... - wow you must have deep pockets.
I could nearly buy a 3-bed house outright in some of the towns and cities that have good employment in the UK for the price of a deposit here.
Jul 17th 2013, 1:25 pm
#45
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Re: Oh for goodness sake, just make the country more expensive to live why not!
