The following information was correct at the time of writing; however it’s an ever-evolving industry so we do recommend doing your own research.

Are you struggling to decide between buying and renting property? Getting flustered Googling “homes for rent Auckland”? Indeed, choosing between buying and renting property is often a challenging task. Each option has different types of advantages. And we are here to provide an expert opinion on whether you should buy or rent Auckland homes. In this article, you will learn:

• the benefits of renting vs. owning property
• the most important things to consider before renting or buying property
• how you should go about finding the ideal NZ property to buy or Auckland flats for rent

Statistics

There are estimated to be over 1,787,900 households in NZ and a homeownership rate of 65.6%. House prices have been on the rise in recent years and, so, homeownership rates are mostly dropping in every region.

This is particularly true of Auckland, which is seeing the largest decline in homeownership rates. According to statistics, homeownership in Auckland has dropped from 72.7% in 1991 to 59.4% in 2018.

This means that a lot of people in the country are renting their accommodation. Based on the 2018 census, 31.9% of households, i.e. 1.4 million people across the country are living in rented homes.

The number of people who rent homes in Auckland is 604,100, i.e. 34% of the city’s inhabitants.

To rent or not to rent? That is the question!

SPACE

1. Organizing your personal space: Should you buy or rent a house in Auckland?

Own property: You can easily change chattels and fixtures.

In your own property, you will never have to deal with disputes about chattels and fixtures.

Chattels are items of personal property that were never intended to be fixed to the house and can be removed without causing damage to the property.

Fixtures, on the other hand, are things permanently attached to the house or to the land.

Chattels and fixtures are a common source of argument between landlords and tenants and, as an owner, you will never have to deal with that!

Rented property: No fixtures.

If you have chosen an Auckland home for rent to live in, you cannot renovate, alter or add fixtures, e.g. in garden sheds, pools etc. These are the responsibility of the landlord, who is also responsible for any costs associated with their repair and maintenance – which is a plus, in this situation.

To get a better understanding of the differences between chattels and fixtures, watch this informative video:

2. Knowledge of the district: Which area offers the best homes for rent in Auckland?

Own property: You get accustomed to your own district.

Buying your own property means that you have a permanent address and allows you to truly get to know your neighbourhood. This is important for creating a sense of stability.

Rented property: Every time you move, you start from scratch.

Starting from scratch is not easy, and homes in Auckland for rent can be expensive. Some people are overwhelmed by the idea of starting over, while others feel excited by it. If you’re the latter kind of person, you are guaranteed to experience diversity in Auckland’s different districts. Auckland straddles two coasts and you can find everything there – from bustling city life to calm white-sand beaches and rugged nature to the west.

3. Diversity: Are properties to rent in Auckland better for those who prefer diversity?

Own property: Lack of diversity.

Some would argue that when you always stay in the same place in a city, be it a house or an apartment, you could get bored. While it’s true that owning a house doesn’t allow for diversity, if you are the kind of person that thrives on stability, this could be the right choice for you.

Rented property: You can change your environment as often as you like.

Tired of your home interior? If you are renting, all you would have to do in that situation is wait for your lease to end, and then you would be free to move along to another more inspiring location.

 

4. Moving: How convenient is it to switch between Auckland rental homes?

Own property: Moving from district to district within Auckland is not easy.

You cannot just pack up a house like a suitcase and move out quickly when you get tired of your house. It takes time to sell your property and buy another one or find tenants for your property and rent a home somewhere else.

Rented property: You can easily move to another Auckland district, city or even country whenever you like.

If you are simply a tenant that wants to leave their accommodation, you will find that it is rather easy. Sometimes understanding landlords will even allow you to move out before the lease ends if they have found a new tenant!

5. Choice: Rent a home in Auckland that is exactly like you imagined.

Own property: If you’ve inherited your property, you may have to live in a home you don’t actually like.

If you inherit a property, it usually means you won’t get an opportunity to create your dream house. Inherited properties often need a lot of renovations in order to appeal to their new occupants!

Rented property: You can choose the best variant among dozens of Auckland homes.

Renting allows you to find a property that suits your taste perfectly. With so many housing options available in Auckland (Google “homes for rent Auckland” and see for yourself!), if you don’t like an apartment, you just move on to the next one… just like that!

6. Renovation: Who is responsible for renovating an Auckland property for rent?

Own property: Needs renovation once in every few years.

Maintaining a house does not come cheap. If you’re the owner of a property, renovation is your financial responsibility.

Rented property: Renovation is the landlord’s responsibility.

While tenants sometimes have issues convincing landlords to get on with required maintenance and repair work, they at least do not have to incur the costs of property renovation – a big advantage for renting a place.

7. Consumerism: Does living in Auckland houses for rent promote consumerism?

Own property: You tend to buy tons of things to make your home cosy.

This is often an unnecessary cost, and the results can be cluttered and chaotic.

 

Rented property: Remembering that you will be moving out one day prevents you from overspending.

When you rent a house, you are unlikely to buy tons of unnecessary things that will be hard to pack when moving elsewhere. This saves you money and space!

PEOPLE AND ANIMALS

8. Kids: Are homes for rent in Auckland New Zealand kid-friendly?

Own property: No repercussions for damages caused by kids.

Parents will know that children can often get defiant and destroy things. Accidents can happen with kids around in a house, but at least if it’s your own property, you don’t have to compensate anybody else for damages.

Rented property: Many Auckland landlords disagree to have tenants with kids.

Many landlords show preference to tenants without kids, for the reason that children can unwillingly cause damages to property. Yet, it is unlawful to discriminate against prospective tenants with children under the age of 18.

9. Education: Living in Auckland homes for rent, can you guarantee a stable education for your kids?

Own property: Your kids can go to the same kindergarten/school/university.

Owning your home means your children will be able to attend the same school throughout their education, which is really important for their growth and stability.

Rented property: Disruptions to your kids’ education can occur when a tenancy comes to an end.

If your landlord ends your tenancy, you will have to look for a property in the same district so that your children can keep attending the same school, which can be a difficult task sometimes.

10. Age matters: Do you want to be looking for cheap houses for rent in Auckland when you’re older?

Own property: Elderly people get attached to their homes.

It is comforting for people to grow old in a house that is their own and where they have spent many years of their lives and made many memories.

Rented property: It’s difficult for an elderly person to adapt to new places.

With age, it becomes significantly harder to pack up your belongings and move to new places, setting up a home from scratch. It can take a toll mentally and physically on elders.

11. Guests and fellow residents: If you live in flats to rent in Auckland, can you have guests?

Own property: You can invite anyone and for any period of time.

Owning your own house means you don’t need to inform anyone about who you are having over and when. If you want to let relatives stay over for an extended period of time, that is only your own business!

Rented property: You need landlord permission if you want to invite a guest.

You can only invite guests over to stay, especially for a long period of time, with landlord permission according to the NZ Tenancy Services rules. Most landlords allow guests to stay over no more than 10-14 days in a six-month period.

12. Human relations: Who do you have to interact with when living in Auckland city homes for rent?

Own property: You communicate only with your family and friends.

Living in your own property, you get to have control over who you communicate with and who you let in. This can be a nice luxury if you’re a private person.

Rented property: Landlord-tenants’ relationships are often difficult.

In a rented property, you will always have to deal with your landlord. If you get lucky, communication with them will be easy, but landlord-tenants’ relationships are notoriously difficult and you may have to prepare yourself for some inevitable conflicts.

 

13. Pets: Do houses to rent in Auckland allow pets?

Own property: No repercussions if pets damage something in your own property.

If your pet causes damages to your property, you may have to replace an item or two, but it’s no big deal as you are only holding yourself liable and will not be having to compensate a landlord.

Rented property: Many Auckland landlords disagree with tenants having pets.

Since pets are known for scratching surfaces and flooring and causing damage to property, many landlords show preference for tenants without pets. Homeowners insurance does not always cover pet damage, so they are likely to avoid tenants with pets if they do not have the right coverage. When looking for a place online, make sure to add “pets allowed” to your “Auckland rent a house” search to facilitate the process.

MONEY

14. Bond vs down payment: Should you save for a down payment or pay the bond on a house for rent in Auckland?

Own property: Making a down payment

In New Zealand, you generally need a 20% deposit to get a mortgage. An Auckland homebuyer needs to scrape together $159800, while in Dunedin and Christchurch they would need about $90,000.

Rented property: Making a bond payment

To live in a rental home in Auckland New Zealand, the maximum bond you will be required to pay is an amount equal to 4 weeks’ rent. When the tenancy ends, tenants are refunded the amount after a property inspection.

15. Payments: What is the average rent in Auckland New Zealand?

Own property: No need to pay rent.

While you may have to take out a loan to buy your property, you will never have to pay rent! Loan payments don’t increase and, in fact, they can even decrease in case of refinancing your mortgage, which involves your bank or lender paying off your old mortgage with a new one.

Rented property: You need to pay rent.

Unfortunately, rent is high around the country and is likely to increase. The average rent price in Auckland is around $600 a week. The national median weekly rent for a small house (1 to 2 bedrooms) was estimated at NZ$390 a week, and NZ$525 for 2 to 4 bedrooms.

So, which is less expensive – paying rent or paying loan – and why? Well, that depends on your specific situation. Buying a home is an enormous investment, so it is vital that you do not rush into your decision.

16. Taxes: Is it better to buy a house or to find a house to rent in Auckland?

Own property: You need to pay property taxes.

If you own a property, you will have to pay local property taxes. These are levied by local authorities and based on the rateable value of a property. The annual cost for an average family house is between NZ$1,000 and NZ$2,000.

Rented property: You don’t need to pay property taxes.

One of the greatest advantages of renting a house is that you do not have to deal with extra bills! You can rest easy knowing that property taxes are your landlord’s responsibility.

Rent a home in Auckland!

New Zealand, and specifically Auckland, is a great place to live, as it offers so much diversity and a fantastic quality of life. Depending on your circumstances and what you are looking for, you can either buy a house in the country or choose from one of the many houses for rent in Auckland New Zealand. We have explicitly outlined the benefits of renting and the benefits of buying so that you can weigh them up for yourself and make the right choice.

If you are looking for our expert opinion… We recommend first trying renting properties and exploring different flats for rent in Auckland before committing to one single property or one single location where you’re going to buy. This will help you get a feel for what you want before you officially become a homeowner.

Use CGPM to help you find the ideal property, no matter your situation. Our expert team has the knowledge to get you the best deal out there – whether you’re looking for an Auckland house for rent or to buy your dream home!