[T-R3xx]

I saw an interesting figure (for Wellington, I think) where only 34% of households own their own home. This is interesting, because where we live now in the Minneapolis, Minnesota area, the figure is around 75-80%.

If this is true (the disclaimer), can anyone offer any insight as to why more people would NOT own their own home in NZ metro areas? Is there some compelling reason to rent versus buy? Are there fewer advantage to owning a home in NZ (tax, or otherwise)?

Thanks!!

Pearce

[Singel]

Off my head, these are some of the reasons :
1) The house prices in big cities have gone rocket high, the 1st time home buyers will have to rent.
2) People who think that house prices are going to fall and they sell their properties to realise the capital gains and go into renting (adopt a wait-and-see).
3) For career move, renting is more convenient, just pack and go.
4) Migrants who could not secure a mortgage.
5) People on benefits or low income.

:cheers

[jubjub]

It may also be to do with what we got told about investments over here, apparently folk tend to buy houses and keep them to rent out, and can end up with a few properties all being owned by one person. I think it was the manager in the Estate agents office, that had something like 11 properties to his name, all rented out, plus of course his own little mansion to live in.

It seems to be what they do instead of shares/pension funds.

[ruthyroo]

I would say two of the above. Firstly, there don't seem to be many investment options here other than property - everyone we have met with any spare cash has at least a couple of rentals, and often many more. Secondly, lots of people just can't afford to buy at current prices (which have probably been pushed up by all the people investing in rentals!). NZ seems to be a bit of a closed circle in that respect. The cake doesn't get much bigger, but more and more people want a slice...

[veronica]

the other thing to take into account is that a lot of young people move into the cities from outlying areas and they are not at that stage interested in settling down. they like the freedom to just be able to up and move either into a different house or even city. Also a lot of uni students rent, this is all in addition to the very valid reasons given above.

[Avalon]

According to Quotable Value's demographic profile for Wellington - 59% of people own or partly own thier own property. This is agains 64% for New Zealand as a whole.

The demographic profiles on QV are free to view, and they are a useful first guide to an area. (For people from the UK, its like Up My Street, but not as much info.

https://www.qv.co.nz