Rent vs Buy? Columnn: NZ Mortgages
Rent Vs. Buy? What is the best option in the Christchurch housing market in 2024
The age-old question of whether to rent or buy a property is particularly relevant in today’s real estate landscape.
In recent years, rents have seen a consistent upward trend. In main centres like Christchurch, Wellington, and Auckland, the average rent for a three or four-bedroom property has significantly increased. For instance, in Wellington’s Central City, you’re looking at a minimum of $900 to $1,000, while in Auckland, it’s around $1,100. Christchurch follows with a minimum of $700. This continuous rise in rents creates a compelling consideration for those exploring housing options outside of paying rent.
While interest rates are anticipated to decrease as we head towards 2025, the reality remains that rents are not going to reduce. This presents a dilemma for individuals weighing the decision to rent or buy. Affordability plays a crucial role in this equation. If you can comfortably afford a property without stretching your financial limits, the recommendation leans towards buying.
A great recommendation if you are considering buying your own property, is to save the money additional to your rent every week that you would be using to pay your mortgage, and see if you can make the tighter financial constraints work. If yes, then buying may be a great option for you. If not, consider asking for a pay rise, picking up extra shifts or looking at side hustles – anything to bring your income up and help to work towards that house deposit. At the end of the day, do you want to be paying your own mortgage, or your landlord’s?
The advantages of homeownership also lie in the potential for capital growth. By entering the property market, you position yourself to benefit from any upward momentum, enjoying the appreciation of your property’s value over time. This contrasts with the continuous upward trajectory of rents, making a fixed mortgage an attractive and potentially more stable financial commitment.
Remember, you only need 5% as a first home buyer – and you can use your KiwiSaver as your deposit.
Buying a home is not for everyone. Make sure you consider your life goals. Are you planning on moving overseas? Do you have childeren? A partner? Animals? Hobbies? Your personal needs will determine your need for a suitable property. Once you have taken into consideration all the factors, you can safely make the right decision.
At NZ Mortgages, we recognize the nuances of this decision, and our team is ready to assist you in navigating the intricacies of the real estate market. Whether you choose to rent or buy, our goal is to provide expert guidance tailored to your unique circumstances, ensuring that your decision aligns with both your short-term needs and long-term financial aspirations. Get in touch with our team today on 0800 100 300, or on www.nzmortgages.co.nz.
https://www.nzmortgages.co.nz/post/renting-vs-buying-in-new-zealand
