Quote Originally Posted by sanctus671 View Post
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.
Yes I think it makes sense even better if you can add some value to the home(Paint, upgraded kitchen, bathrooms, etc) i.e make sure to buy with good bones-- brick/roughcast -steel roof, good sun, good location, your far better of paying a few dollars more to secure a much lower maintenance cost going forward etc ... interest to where you are looking to BUY have done many property transactions over the years.

Also, rates are trending downwards go for the sharpest rate you can find ASB offered me 3.85% 2yr + $4550 cash (for 600k debt re-finance)

Also great idea if you only need one room even lookout for 4brd many time not much more in cost but can add several thousand more in income pa ... you could rent 1-2 rooms and airBNB the 3rd-4th

In hindsight I wish I held onto my first property was only 24yrs old build two story 3brd upstairs -2 bed flat underneath back in the early 2000's in Queenstown total loan was only 500k!! look at it now https://homes.co.nz/address/queensto...re-place/1jjLp

Should have just rented out all the rooms and flat would have paid all the out goings and these days the flat would bring in $500-600pw
and instead of paying for a room and rent I could have just paid down the loan ... but young and dumb took a quick 200k Cap gain at auction ..