Homeowner's Blog

Buy vs Rent in New Zealand

 

Do you buy a property and start getting onto the property ladder or are you concerned about mortgage payments, job security or retirement? How can you beat new tax, local fees and rent increases?

Financial melt down

Does it make sense to buy a property?

 

True, the property market is flat and despite all the attempts from the Real Estate industry to talk it up people are concerned about.

 

Concerned about:

 

· Mortgage payments

· Job security

· Safe retirement

 

The often asked question is— Why to buy a property now?

 

Well, if you live in a house you own, you will be able to take control over costs and expenses. Good insulation reduces your heating bill, handyman’s repair reduces maintenance costs and gardening can subsidize your grocery bills. As renter you can’t do so much on top of price rise by inflation and rent increase.

 

My point here is as homeowner I don’t care about whether the housing market is flat or booming. I manage my place well with maximum return. I harvest even solar and wind power, but that is a different story, saying—if you want to your property can pay you. Why would I be worried about the latest up and down of CV or QV?

 

Here is Klauster Properties’ Offer

 

If you want to take control over your life, and minimize the risks when going onto the property ladder – talk to us as experienced property driver to get you guaranteed to the point of your chosen destination. Even with limited finance we can work out a plan for progressing your dreams (joint venture, Lease Option). Another often asked question is

 

What will my home be worth in 10 years time?

 

If you ask me right now looking at the financial mess the world is in, I would say “I don’t know”. Certain is that property values will not be the same as they are today. Remember, what happened after the great inflation in Europe and the depression in US. And 13 years ago I paid  for my home a third of that I would have to pay today despite the recession in 2007-2010.

 

New Zealand is financially connected to a world in economic turmoil and people lost on shares after “September Eleven” 2001, money that has gone. My house is still here. When I wake up in the morning, touch my house, the under-floor heating did already its job and after breakfast—I am ready for facing the day.

 

Let me tell you something as investor – the housing market is moving into a new economic cycle driven by the developments in the earthquake devastated areas, housing shortage, strong inflation and price raise.  Renters are keen to scale down to reduce rising rents. Costs in the building industry go up because of new procedures and standards for construction – now you can guess the future.

 

You can only spend what you earn, the government spends more than that and covers deficits with new tax and local fees. You can’t beat that but could produce vegetables in your garden and take energy from solar on the roof. Be smart — that is still tax free. When you look at the “big picture” the interest rates have passed the lowest point, imagine the trend for years to come.

 

Here is my offer again, if you want to take control over your life, now is a good time to talk. With professional assistance you can make it. As you already know – life is a series of opportunities, tomorrow it will be even harder – email now.

To change life for a good reason makes really sense.

Klauster