Property in NZ - buy or rent?
Discussion
Here's another 'Brit coming to NZ' question for you all 
, my partner is from Palmerston North and she wants to return after 2 years in UK and its looking like the sooner the better.
I would like to know how the property market is there. Should I be looking to buy or rent. My main problem is my house in UK would probably take 6 months to be sold and completed whereas I could keep it and rent it and use the rental income, approx £650/month, towards something in NZ. This would mean property in UK rather than in NZ, any advantages or disadvantages especially from those that have 'been there, done that'. Selling my house releases approx £240,000 but would property somewhere in the world, UK or NZ, be better than cash in the bank, or burning a hole in my pocket?
And while I'm asking, for those that have recently moved there, Iain
, what cost is involved for shipping minimal personal effects and should I bring my TVR 350i or store it? And the Corvette or sell that first?
Am I right in thinking as being a partner of a Kiwi, I shouldn't have too much visa problems and what should I be doing in that department? (Visa's!)
Thanks in advance
Mark
, my partner is from Palmerston North and she wants to return after 2 years in UK and its looking like the sooner the better. I would like to know how the property market is there. Should I be looking to buy or rent. My main problem is my house in UK would probably take 6 months to be sold and completed whereas I could keep it and rent it and use the rental income, approx £650/month, towards something in NZ. This would mean property in UK rather than in NZ, any advantages or disadvantages especially from those that have 'been there, done that'. Selling my house releases approx £240,000 but would property somewhere in the world, UK or NZ, be better than cash in the bank, or burning a hole in my pocket?
And while I'm asking, for those that have recently moved there, Iain
, what cost is involved for shipping minimal personal effects and should I bring my TVR 350i or store it? And the Corvette or sell that first? Am I right in thinking as being a partner of a Kiwi, I shouldn't have too much visa problems and what should I be doing in that department? (Visa's!)
Thanks in advance
Mark
Hi Mark
I'm a big fan of owning property but probably wouldn't buy (straight away) in your circumstances.
Prices are near the top (according to most economists), interest rates are high and rising. A good indication, certainly in Auckland, is that rentals do not cover mortgages.
Once you're settled in a location and have your employment sorted (kids in a good school ??) that might be different.
Also have a think about who would look after the property you're leaving behind. An agency is one thing but I'd also have a relative or friend keeping a casual eye on it.
What kind of employment will you be looking for ?
I'm a big fan of owning property but probably wouldn't buy (straight away) in your circumstances.
Prices are near the top (according to most economists), interest rates are high and rising. A good indication, certainly in Auckland, is that rentals do not cover mortgages.
Once you're settled in a location and have your employment sorted (kids in a good school ??) that might be different.
Also have a think about who would look after the property you're leaving behind. An agency is one thing but I'd also have a relative or friend keeping a casual eye on it.
What kind of employment will you be looking for ?
The TVR might be tricky, as they make more than 200 per year, and as I guess that one like all TVR's is not crash tested then you'll not be able to get it into NZ for on road use...
The 'Vette should be ok, though if it's a left hander I'd double check...
I'm a Kiwi in the UK, and I've been watching the NZ housing market for a while, and she's pretty well stretched, plus a set of bad economic figures is adding up against the NZ$, but as it's still attractive to EU/Jap investerors (you can get >7% interest on your savings account) so it could be a while still before it drops.
When I got to the UK just over 3 years ago, I could get NZ$3.2 to the pound, now it's like $2.50, so that gives you an idea of how much the Kiwi can swing against the Sterling...
Oh, and the cops like to catch you out, so don't try any wheelspins or they'll take your car off you!
The 'Vette should be ok, though if it's a left hander I'd double check...
I'm a Kiwi in the UK, and I've been watching the NZ housing market for a while, and she's pretty well stretched, plus a set of bad economic figures is adding up against the NZ$, but as it's still attractive to EU/Jap investerors (you can get >7% interest on your savings account) so it could be a while still before it drops.
When I got to the UK just over 3 years ago, I could get NZ$3.2 to the pound, now it's like $2.50, so that gives you an idea of how much the Kiwi can swing against the Sterling...
Oh, and the cops like to catch you out, so don't try any wheelspins or they'll take your car off you!
Kiwi XTR2 said:
Hi Mark
I'm a big fan of owning property but probably wouldn't buy (straight away) in your circumstances.
Prices are near the top (according to most economists), interest rates are high and rising. A good indication, certainly in Auckland, is that rentals do not cover mortgages.
Once you're settled in a location and have your employment sorted (kids in a good school ??) that might be different.
Also have a think about who would look after the property you're leaving behind. An agency is one thing but I'd also have a relative or friend keeping a casual eye on it.
What kind of employment will you be looking for ?
Employment maybe B&B such as this www.harcourts.co.nz/pcQSearch?qst=PX060104 hopefully little or no mortgage. Originally thinking Hawkes Bay but Picton area now in the frame. I've no kids but my partners kids are schooled at Palmerston.
Leaving my house in UK is easiest option but once in NZ I wouldn't be able to buy a business so would need to work, not sure what work yet!!
Hi Mark
I generally agree with the guys above...but here's my 5 cents worth (whilst its still legal tender).
You won't get the TVR in, I'm afraid, I have an undrivable Chim in the garage here. Can't comment on the Vette.
Rent before you buy - as it can take some time to decide exactly where to live and what is a good deal or not. However, when you are looking at rentals don't give agents or landlords any indication as to a timescale you are looking to rent for. When I was looking, everyone was after long term renters. Before I realised this, I would often say in conversation that was looking where to work / live / buy and would suddenly find landlords closing doors on me...
The Housing market still has some steam in it yet, and nationally averaged prices are currently rising at over 15% PA. Economists have been predicting a price "adjustment" since early 2005, but it's not happening yet. Problem is that the Reserve Bank is raising interest rates to try and cool the market - however over 80% of mortgages are fixed rate, so all it does is encourage foreign investors into the financial markets. Some areas will fall slightly over the next few months, but mainly the currently over inflated areas such as Auckland apartment market, Nelson, Queentown etc.
Are your partner's kids schooled in Palmerston North (North Island) or Palmerston (South Island)? You referred to both!
Hope that all helps.
Cheers
Richard
>> Edited by zaphod on Sunday 15th January 06:13
>> Edited by zaphod on Sunday 15th January 06:13
I generally agree with the guys above...but here's my 5 cents worth (whilst its still legal tender).
You won't get the TVR in, I'm afraid, I have an undrivable Chim in the garage here. Can't comment on the Vette.
Rent before you buy - as it can take some time to decide exactly where to live and what is a good deal or not. However, when you are looking at rentals don't give agents or landlords any indication as to a timescale you are looking to rent for. When I was looking, everyone was after long term renters. Before I realised this, I would often say in conversation that was looking where to work / live / buy and would suddenly find landlords closing doors on me...
The Housing market still has some steam in it yet, and nationally averaged prices are currently rising at over 15% PA. Economists have been predicting a price "adjustment" since early 2005, but it's not happening yet. Problem is that the Reserve Bank is raising interest rates to try and cool the market - however over 80% of mortgages are fixed rate, so all it does is encourage foreign investors into the financial markets. Some areas will fall slightly over the next few months, but mainly the currently over inflated areas such as Auckland apartment market, Nelson, Queentown etc.
Are your partner's kids schooled in Palmerston North (North Island) or Palmerston (South Island)? You referred to both!
Hope that all helps.
Cheers
Richard
>> Edited by zaphod on Sunday 15th January 06:13
>> Edited by zaphod on Sunday 15th January 06:13
I left behind a rental property in the UK, and to be honest it's a right pain the ar$e. I've had nothing but trouble from (non-paying) tenants, so all this time I've been paying two mortgages - one in sterling! My dad has been able to help sort things out a bit, but I'm very close to selling it.
I'd also say rent for a year or two in NZ, and see what happens.
Can't comment on shipping cars, but shipping all our furniture, etc cost about 3 grand IIRC, that included having someone pack our contents and unpack them at the other end. Britannia it was, and I'd recommend them.
Visa shouldn't be a problem, start off with a 2-year visitor visa (the easiest to get), that gives you time to sort out something more permanent after you arrive.
I'd also say rent for a year or two in NZ, and see what happens.
Can't comment on shipping cars, but shipping all our furniture, etc cost about 3 grand IIRC, that included having someone pack our contents and unpack them at the other end. Britannia it was, and I'd recommend them.
Visa shouldn't be a problem, start off with a 2-year visitor visa (the easiest to get), that gives you time to sort out something more permanent after you arrive.
We've rented for a year, combination of things realy.
Poor exchange rate, hoping for 2.8+ later this year (bulk of cash still in UK).
Poor intrest rates.
Kiwi housing market has IMO peaked, theres lots of lag in the market due to fixed term deals, and also lots of debt, house prices arnt going anywhere the next 12-24 months I dont think. Can alredy see properties hanging about some.
I calculated that it'd cost is the same in pure intrest on a loan to buy the property were renting as the rent, so were not loosing out on anything by renting (apart from possible capital growth), and TBH I dont want to be remodeling kitchens, painting, gardening right now, I want to settle in and get used to NZ.
Were going to start looking at stuff soon, but our target area is smallish and theres a big variety of propery here (big/small/poor/good).
Poor exchange rate, hoping for 2.8+ later this year (bulk of cash still in UK).
Poor intrest rates.
Kiwi housing market has IMO peaked, theres lots of lag in the market due to fixed term deals, and also lots of debt, house prices arnt going anywhere the next 12-24 months I dont think. Can alredy see properties hanging about some.
I calculated that it'd cost is the same in pure intrest on a loan to buy the property were renting as the rent, so were not loosing out on anything by renting (apart from possible capital growth), and TBH I dont want to be remodeling kitchens, painting, gardening right now, I want to settle in and get used to NZ.
Were going to start looking at stuff soon, but our target area is smallish and theres a big variety of propery here (big/small/poor/good).
zaphod said:From another post, I thought vehicles over 20 years old were OK.
You won't get the TVR in, I'm afraid, I have an undrivable Chim in the garage here. Can't comment on the Vette.
zaphod said:Palmerston North (North Island). I didn't realise there was a Palmerston on the South Island.
Are your partner's kids schooled in Palmerston North (North Island) or Palmerston (South Island)? You referred to both!
wedgepilot said:Thats what I'm afraid of but I've a friend who is renting out two properties of his own so can keep an eye on things.
I left behind a rental property in the UK, and to be honest it's a right pain the ar$e.
RobDickinson said:Similar to UK then, although ideal option is to sell mine, to get a fair price will take some months. If market growth in both countries are the same then no benefit to sell and will save on the expenses of selling. Renting will allow settling time BUT I won't be able to afford to rent a 'home & income' property so I'll need a job, and thats another hurdle!
Kiwi housing market has IMO peaked, theres lots of lag in the market due to fixed term deals, and also lots of debt, house prices arnt going anywhere the next 12-24 months I dont think. Can alredy see properties hanging about some.
Decisions decisions
.
It cost us £3500 to have a 20' container packed and shipped with out 3 bed detached stuff, we took everything - insurance value £60k or so, if you have everything take it all, no way you can sell it for a decent price to replace it like for like in NZ, some things arnt cheap here. Theres no tax/duty for importing personal effects as part of emigration. (we used Crown relo, John masons, PSS etc are OK).
If your furniture is cheap and appliances old then may not be worth shipping. You dont need a whole container , groupage is OK but IMo causes hastles in a few areas. You cant pack stuff in the car either.
A car would add about £2k on top that I think, theres costs and paperwork here too, probably cleaning etc too, if you've owned the car 12months and dont sell it for 24 you dont pat import tax/GST etc. But the car needs safety cverts (front impact etc) that some UK cars dont have.
If your furniture is cheap and appliances old then may not be worth shipping. You dont need a whole container , groupage is OK but IMo causes hastles in a few areas. You cant pack stuff in the car either.
A car would add about £2k on top that I think, theres costs and paperwork here too, probably cleaning etc too, if you've owned the car 12months and dont sell it for 24 you dont pat import tax/GST etc. But the car needs safety cverts (front impact etc) that some UK cars dont have.
mark387mw said:My own experiences of the rental market in Fitz-Palmerston are that it is dominated by students. I've got no idea what the economics squares out to down there but you obviously have a few more issues on average compared to renting to a 30-somthing professional couple.
Viable in Palmy North or somewhere else??
you can use that to your advantage as well though, students will generally be happy with a lower standard of living than professionals. (however they also expect to pay less for it, and often won't bother looking after any of it themselves.) best way to make money with student flats I'd think is to have a decent number of bedrooms, = more students = more money for you.
>> Edited by GravelBen on Thursday 26th January 21:49
>> Edited by GravelBen on Thursday 26th January 21:49
Hello Mark378,
I’ve just moved from the Palmerston area to Masterton as the sale of our house is complete in a couple of days. Housing market is defiantly slowing now, you can still get a good price if you are willing to hold out. You can purchase at GV if you get an eager seller in a rather “ordinary” property however. I’m optimistic that the increasing population will keep house prices rising in the long term. Having said that renting is very cheap here, but finding good properties to rent can be a bit of a mission. I personally thought that property was extremely cheap here but I think other PHers may disagree with me.
Student accommodation may well be a good bet, my mum lectures business here and they always like unemployment because it gets more people into training, there have been a few companies laying off employees recently
. I think most students would live in a shed if it was cheap and close enough to a liquor store 
.
Employment is easy to find, you can suffer from “big fish in a small pond” though if your skills are very specialised.
Shipping a good quantity of furniture/white ware is defiantly worth it, when we moved we left far to much behind and when you move to a half way around the world you have enough to worry about/consume your time without dragging yourself through furniture/white ware shops.
As mentioned the exchange rate is bad at the moment, I expect the value of the kiwi dollar to fall substantially in the near future.
Paper work for immigration is a bit of a mission.
I’ve just moved from the Palmerston area to Masterton as the sale of our house is complete in a couple of days. Housing market is defiantly slowing now, you can still get a good price if you are willing to hold out. You can purchase at GV if you get an eager seller in a rather “ordinary” property however. I’m optimistic that the increasing population will keep house prices rising in the long term. Having said that renting is very cheap here, but finding good properties to rent can be a bit of a mission. I personally thought that property was extremely cheap here but I think other PHers may disagree with me.
Student accommodation may well be a good bet, my mum lectures business here and they always like unemployment because it gets more people into training, there have been a few companies laying off employees recently
. I think most students would live in a shed if it was cheap and close enough to a liquor store . Employment is easy to find, you can suffer from “big fish in a small pond” though if your skills are very specialised.
Shipping a good quantity of furniture/white ware is defiantly worth it, when we moved we left far to much behind and when you move to a half way around the world you have enough to worry about/consume your time without dragging yourself through furniture/white ware shops.
As mentioned the exchange rate is bad at the moment, I expect the value of the kiwi dollar to fall substantially in the near future.
Paper work for immigration is a bit of a mission.
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