Originally Posted by
sanctus671
Hey everyone,
I am looking for some advice from people on here who have much more experience and knowledge than me with the NZ housing market. Here's the situation:
I currently have basically all my money in the NZX. I'm fairly happy with how things are and rate of return (~10% average per year through divvies and cap gains). However I am considering purchasing a house to leverage my money, diversify, and reduce housing costs (over the long term). From what I can see, the monthly repayments would be similar to the rent I pay every week. The numbers:
For $400,000 3 bedroom house with $80K deposit (20%):
5-year fixed rate mortgage @ 4.39%: $369/week
Rates: ~$25/week
Insurance: ~30/week
Maintenance: ~$30/week
Total: $454/week
Seems like a no-brainer given the cost is similar to renting, but I'd also be building equity at the same time. Could also rent out the other 2 rooms to offset the mortgage. It seems a bit too easy, so I feel like I must be missing something. I can't trust what mortgage brokers say as they are obviously biased. I'd love to hear some thoughts on the above and if I am over simplifying or missing something altogether.