# Buy a house for rent?



## ehdgh32 (Feb 21, 2016)

Rent is too high and it makes me hard to manage my finance.
Nowadays, I am considering buying a house in check area and rent it to compensate my rent.

Like, Hamilton, there the price is relatively low but high rent. So I could buy a one or two bedroom house and can have a tenant. 

But the problem is that I still don't know whether the house price in Hamilton goes up/down/stable..

How you think about this?


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## escapedtonz (Apr 6, 2012)

ehdgh32 said:


> Rent is too high and it makes me hard to manage my finance.
> Nowadays, I am considering buying a house in check area and rent it to compensate my rent.
> 
> Like, Hamilton, there the price is relatively low but high rent. So I could buy a one or two bedroom house and can have a tenant.
> ...


What type of visa do you hold that allows you to be in New Zealand ?

I say this as there are restrictions on buying property in NZ depending on your visa status so good idea to buy a house and pay mortgage with a tenant supplementing your income so you can pay back that mortgage, but you may not be able to get a mortgage in the first place or there may be certain rules imposed on you personally from the banks that may make purchasing property difficult unless you have a temporary type work visa in excess of 2 years duration or you are a resident visa holder.


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## ehdgh32 (Feb 21, 2016)

escapedtonz said:


> What type of visa do you hold that allows you to be in New Zealand ?
> 
> I say this as there are restrictions on buying property in NZ depending on your visa status so good idea to buy a house and pay mortgage with a tenant supplementing your income so you can pay back that mortgage, but you may not be able to get a mortgage in the first place or there may be certain rules imposed on you personally from the banks that may make purchasing property difficult unless you have a temporary type work visa in excess of 2 years duration or you are a resident visa holder.


I have PR visa and lived in NZ for 5 months. I have a job too, 1-year fixed term though.


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## escapedtonz (Apr 6, 2012)

ehdgh32 said:


> I have PR visa and lived in NZ for 5 months. I have a job too, 1-year fixed term though.


You'll be fine to get a mortgage then but unlikely a bank will offer to lend you money if you only have 7 months remaining on a work contract ?
You don't have PR.
Very common mistake that people assume they have PR from the Skilled Migrant Category route.
What you will have is RV which is still a permanent class visa allowing you to remain in NZ forever (at the moment) but it has conditions.
In your case you can only get PR after you have held RV for minimum 2 years and satisfy one of five criteria.


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## ehdgh32 (Feb 21, 2016)

escapedtonz said:


> You'll be fine to get a mortgage then but unlikely a bank will offer to lend you money if you only have 7 months remaining on a work contract ?
> You don't have PR.
> Very common mistake that people assume they have PR from the Skilled Migrant Category route.
> What you will have is RV which is still a permanent class visa allowing you to remain in NZ forever (at the moment) but it has conditions.
> In your case you can only get PR after you have held RV for minimum 2 years and satisfy one of five criteria.


Thanks for your information! But I won't have mortgage because I have money in my bank account. And the one or two bedroom houses in Hamilton don't cost a lot. And I though RV could be regarded as PR because it does have indefinite validity even though there are conditions as you mentioned.


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## Nemo80 (Apr 16, 2017)

In my opinion a nearby city to Auckland like Hamilton which is fast growing in population and popularity for Aucklanders will only continue to thrive. If I had money in the bank to buy a house out right I would. The mortgage repayments and uncertainty with potential job loss to meet those repayments is what gets many, but it sounds like you don't have that issue.


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