Housing

Housing is a major expense for most New Zealanders, but there are ways to reduce the financial strain, whether you rent or own your home.

Saving on Rental Costs

If your rented accommodation is too expensive, consider discussing the possibility of a rent reduction with your landlord, especially if you have a strong track record as a reliable tenant.

You may be able to negotiate a reduction in rent by carrying out repairs and maintenance for your landlord.

If sharing rented accommodation with others, ensure that they sign the tenancy agreement so that they are also responsible for any damage and unpaid rent.

If you are renting and want to understand your rights, visit Disputes » Tenancy Services. The Tenancy Tribunal resolves disputes between landlords and tenants, and can order repairs or payments up to a value of $100,000. Application to the Tenancy Tribunal can be done online or by completing a printed form, in addition, a fee of $28 will be required.  For more information phone 0800 836 262 (0800 TENANCY).

Check to find out what Government assistance is available from Kāinga Ora /Housing New Zealand for renting or buying a home.  Home :: Kāinga Ora – Homes and Communities

A practical renting vs buying test

When choosing between renting and buying, consider these practical factors to help determine which option is right for you.

Buying may be a good fit if most of these are true:

You expect to stay in the same location for at least 5 years.

You have a deposit and enough for buying costs.

You have an emergency fund remaining after the purchase.

The repayments remain manageable, even at a higher interest rate.

You won’t need to deplete your KiwiSaver or cash savings completely.

Renting might be the better option if most of these apply:

Your job or location may change soon.

Buying would leave you financially stretched.

You’re dealing with extensive debt.

You’re relying on overly optimistic future income growth.

The house you could afford would significantly impact your quality of life.

Buying

Careful budgeting and sticking to a financial plan may allow you to save enough for a deposit on a house. When buying a home, start by making a list of your main requirements, ranked by importance. If you're unsure about how much to offer for a property, you can access a list of recent sales in the area by visiting Recently Sold Homes and Real Estate in New Zealand - realestate.co.nz

After contributing to Kiwi Saver for three years, you may be entitled to a Kiwi Saver Home Start grant. These are administered in conjunction with Kāinga Ora. www.kiwisaver.govt.nz

For legal advice on buying and selling property, the Law Society provides useful guides, which can be found online at www.lawsociety.org.nz

Mortgage Brokers

If you’re thinking about buying a home, a mortgage broker could help you secure a better deal. They usually have access to better rates and can provide a comprehensive view of the market, rather than just one offer from a single lender.

Mortgage brokers shop across multiple lenders (usually 15–25+), giving you a wider range of choices instead of just one bank.

Brokers can often negotiate rates, securing discounts of around 0.10–0.25%.

They may also offer cashbacks or deals that you might not be able to access directly from banks.

Mortgage brokers are free for you to use, as they are paid by the bank.

Other ways to save on housing associated costs

Prevent burglary by keeping doors locked. Window stays and locks can provide extra security. If you cannot afford to have an alarm, an alarm speaker in a prominent place or a dog warning sign can be good deterrents to burglars who choose the easiest properties.  For more information on security visit www.police.govt.nz/advice.

If you pay rates and have a low income, find out from the Council whether you are entitled to a rates rebate.

If your house is no longer large enough, research whether a sleepout or relocatable building is a more cost effective option rather than buying another house. The rules in some areas are making it easier to add additional sleepouts. Check with your local council.

If you own your home and are struggling with mortgage repayments, you may have the option to switch to an interest-only loan.

Check with different insurance companies to find out whether you can get a lower premium on your house and contents insurance.

Do all your own repairs and maintenance whenever possible. Advice from friends, library books or the Internet can assist (it is always advisable though to use a professional electrician). 

Pay off your mortgage as quickly as possible, as you can end up saving thousands of dollars in interest payments. Use any lump sum windfalls to reduce your mortgage. Check how much is spent on smoking, vaping, or alcohol. You could keep any reduced spend in a savings account for a lump sum repayment or emergency fund.