[sandi28]

Hi everyone!

Not long ago I've joined this forum because I might be moving to New Zealand.
I was laid off from my company and I was offerred a job to go to work to New Zealand, I was getting ready with visas and papers, and I even put my house on rent/sale. Now my old company did a recall for me to go back. At this point I don't know what to do?? I was pretty enthusiastic about leaving everything in my country and going to work to NZ, who wouldn't love to live in such a magnificent place!!
Looking at the interest rates for mortgages with banks in NZ I find them to be pretty hight! How do people does to afford a mortage ?? how is it that while you pay a rent you can put that money into paying for your own place?

I would love to try this opportunity, but I don't know if with my wage I could afford a decent life in NZ or own a house?? :confused: :confused:

I could use some advise. :yes

Sandi

[Mickstim]

Hi Sandi

I'm sorry I can't help with answers for you - I am sure you will get loads of help and advice here though. I just wanted to welcome you and wish you luck with your decisions!

Barb

[Nick88]

Hello Sandi

You are absolutely right, interest rates here are shocking. Alot of kiwis can't afford to buy a house because of the high property prices and interest rates. NZ has some of the most unaffordable housing in the world with the average house price being something like 6.6 times the average household income check out the huge international survey done here http://www.demographia.com/

Couple these prices with the highest interest rates in the OECD, and you have a pretty tough time for the average young family trying to get onto the property ladder. It perplexes me too.

[Tentun]

Hello there

I'm sorry I can't help with your queries but I just wanted to offer my support.

We face the same problem. We own a lovely little home in the UK but if/when we move to NZ we will probably be renting for the rest of our lives or until we get a nice inheritance or win the lottery. It's a tough decision to make.

We just hope that what we gain in lifestyle and improvement of quality of life for the kids in NZ will make up for this.

Good luck

[willsken]

Hi Sandi. I would like to answer your question but you don't say how much you will earn or where you will be living. That make a huge difference to the answer of "will you be able to afford to live here". Give us some more info and we will be able to help. :)

[sandi28]

Thanks to all for the reply!!
Well basically that is exactly our problem, looking at a survey the average house income in 2003-2004 in NZ was 60,000 that's how much I will be making, that's before taxes!
Me and my husband were very excited about this job opportunity and having the change not only to go but also to live there! His company will be paying for the moving and also all our tickets,but now we are very confused because of the life cost and the house pricing!
We want to start a family too, and we'll need a house there, but it seems like many people in New Zealand has to rent. I don't know what our chances will be then.

So we'll we be able to afford to live in New Zealand? (Canterburry), own a house and/or live on a very not tigh budget?

Sandi

[ourquest]

Not sure if this philosophy will sit well with you, but surely you won't really know until you try it (and since everyone's priorities and spending habits are so different it would be risky to be specific with advice). I am not advocating irresponsibility here, but if you are having your relocation paid for by the employer then your initial risk is low. And if "affording to live somewhere" absolutely has to include owning your own home, maybe bear in mind that it is really the bank that owns it, and you will only earn the capital gain from its increase in value...and since NZ has just had its property boom...not the best time to invest. Perhaps renting medium term isn't so bad after all? A few years down the line you might be in a very different (better!) financial position (not to mention enjoying all the other benefits that your move might generate). Just a thought...

[Nick88]

I agree entirely with Ourquest. The returns on a rental property are 4-5%pa, and the mortgage interest rate is 9-10%pa. How do landlords make any money? They don't, unless there is a decent capital gain on the eventual sale of the house. In the mean time they are effectively subsidising the rent.

If it didn't own my home outright I would rent, and invest the savings or the capital that would have bought a house. Especially at the moment, when they property market is showing the early signs of a real cooling.

[sandi28]

The things that are keeping us on hold for taking the job in New Zealand are our house not been abble to rent it yet, the property market in NZ (expensive) also seems like the price goes up and down, not sure and being away from the family.

It is nice to have people's opinion and points of view I really appreciate it. Would be nice to hear about your situation in New Zealand (you know job, life style, etc.) but I know I might be asking too much. :)

Sandi.