Tag Archives: rent

How Much Does It Cost to Rent a House in New Zealand?

Panoramic view of New ZealandThe cost of Stratford rental properties may have increased in April, but it was cheaper compared with other places such as Auckland and Wellington.

An index showed that rents in the Taranaki region rose by 2 per cent to $380 per week for the month. In Auckland, weekly rental rates increased almost 4 per cent to $550. Rental properties in Wellington surged even more at 16.7 per cent to $480 per week.

Reason for Increase

Demand served as the main reason behind the nationwide increase in rents. This caused rental listings in Taranaki to rise by 122 per cent in April, while those in Southland rose even more with a 164 per cent increase. In Gisborne, the high demand for rental properties caused rates to increase by 20 per cent.

Rents in Southland cost $270 per week during the month, but it represented a 10.2 per cent growth on an annual basis. Despite the increase, Taranaki and Southland were among the regions where rents cost less than $400.

The dearth of properties for rent also contributed to higher prices, which led investors to consider developing more multifamily projects.

Multifamily Development

Simon Felton, Colliers International investment property specialist, said that multifamily properties could be the next big asset class in the property market. Felton believes that more multifamily projects could help in solving a shortage of houses, which may then lower rental prices.

However, there are certain challenges for developers such as familiarising themselves with the concept and industry regulations. Still, multifamily apartments may provide a steady income stream since people will always need shelter, according to Felton.

The place where you live plays a big role in how much you pay on rent. As wage growth continues to lag behind rental price hikes, it may be better to rent a house or apartment outside cities such as Auckland or Wellington.

When’s the Right Time to Switch to Buying from Renting?

Concept of home ownership

Concept of home ownershipIf you’re still renting and considering buying your own place, you probably think if it is the right time to enter the housing market. This is common for many first-time buyers, as a home purchase is a major financial commitment. When determining if you’re ready, you need to look at your current situation, as well as your rental expenses and possible costs associated with buying a home.

Altius Mortgage Group and other mortgage companies note that the main benefit of buying is having a place you can call your own (without having any restrictions from the landlord). It can also help you build equity and get tax deductions. Renting, on the other hand, is a good option if you can’t afford a new house or don’t feel like settling into the same place for years. 

Know the costs

Buying a home comes with a larger payment than renting and you need to come up with a down payment. To find out whether renting or owning is better, look at your current rental expenses and potential mortgage payments. 

Amount you can borrow

The amount of mortgage you can loan will depend on your debt-to-income (DTI) ratio. In most cases, lenders don’t want your total debt to go beyond 36% of your monthly income. They can then give you an estimate, but you shouldn’t forget to assess how much loan you are comfortable paying. The way you manage your debt and finances will play a role.

Receiving tax deductions

When you buy a home, a good portion of your salary is likely to go through mortgage payments. But the good news is you may be able to get a tax break, which is not available when renting. It is best to get an idea of how much tax you will save, as the difference may offset higher mortgage payments.

If you believe that now is the right time to buy a home, contact a reliable lender to know more about your options and start preparing for the loan application and buying process. 

Knowing the Cost of Living in Papua New Guinea: A Brief Guide

Rental Property

Rental Property

Apart from travel, many people go to Papua New Guinea for business and work. One, however, should earn a good salary to meet the costs of renting or owning a property. Due to the rapid urbanisation in the country, rents and house prices continue to increase. This has prompted concerns on whether home ownership is still attainable for the average citizen or not.

Though the government is striving to build new affordable housing units, some people will have to deal with rising prices. This is the reason understanding the cost of living in the country is important to come up with an effective solution.

The Rental Price  

There are many budget-friendly houses and apartments in Papua New Guinea. Due to the economy boom, though, there is a slight increase in the cost of rental property.

As Niugini Land and Properties puts it: ‘The rental property market mirrors the property sales market trend. For instance, the areas within the vicinity of the central business districts are considered high covenant, hence high rental rates. In the urban periphery, rental rates for properties (unit, apartment and house) reflect an average rate of K1,400 per week’.

A number of reports reveal that the asking rent for executive residences in Port Moresby can range between K5,000 to K10,000 every week. The cost of rent in low to medium covenant areas, on the other hand, can range between K950 to K2,800.

The Importance of Location

There are certain factors that you should take into account before searching for a home to rent. The cost of a residential property can vary from city to city, which is why it is important to do a thorough research on the location.

Papua New Guinea has a range of attractive options, but you should know which neighbourhood will best suit your budget and lifestyle. Your home’s location can help you determine if you can stay there for a long time. In addition, the environment you will choose will affect the amount of quiet and peace you can enjoy.