Government Housing Affordability Measure study
Interesting article in the Herald recently about the Government Housing Affordability Measure (HAM) study saying that renting is cheaper than owning. There are so many variables to this study which uses average data to come up with results. Everyone’s case is different, and of course somewhere like Auckland it’s extremely difficult to buy a house.
You also need to factor in that whilst owning may cost more in some cases, you are paying off an asset which could set you up for retirement (though don’t just rely on this for retirement). Owning also gives you surety and the ability to add value or make the home more comfortable. Landlords are notorious for not providing adequate heating or insulation!
“Now” is always the best time to buy, as long as you have the deposit and can borrow the money without putting yourself under financial pressure. Obviously there are people who like flexibility, as they travel or their job is variable. But if you can afford to buy now without pressure, then do so. Sometimes this may mean a change in city.