It may not be worth trading your city life for the lifestyle that could come with a tiny mortgage.
A house for $35,000. For many would-be first-home buyers, this sounds unimaginable.
If you’ve been shopping for a house in Auckland recently, this is probably about half what you will be expected to put down as a deposit.
But there are at least 10 houses currently listed for sale for less than $50,000 on Trade Me alone, not including leasehold properties, transportable cabins or homes for relocation.
READ MORE: Aucklanders still asking more for houses
But is it worth trading your city life for the lifestyle that could come with a tiny – or non-existent mortgage?
If you were to move to such a location, could you get a job? What might you earn? And if you are looking to invest – would you be able to rent the property?
Trade Me has supplied a list of some of its cheapest houses for sale and for rent. It is important to remember that while the sales prices on these properties are cheap, many of the outgoings, such as repairs, insurance and even rates, will be similar to those you would pay on a big-city house.
1) 92 Tawa St, Murupara
Three bedrooms, one bathroom, listed for sale with inquiries over $35,000.
Where would you work?
Census data shows that most Murupara residents list themselves as “labourers”. The top five industries are education and training, arts and education services, retail, healthcare and agriculture.
The unemployment rate is 27.2 per cent, much higher than the rest of the Whakatane district.
What might you earn?
Murupara’s median income is $17,100, according to Census data.
What about as a rental opportunity?
Just over half the residents of Murupara rent their homes and pay a weekly rent of $120. There is very little construction going on.
Trevor Cochrane, of Harcourts, said there was solid rental demand for three-bedroom homes with good heating. He said many investors were looking at the market and a number of sales were happening. REINZ figures show the median eastern Bay of Plenty house price increased from $255,000 last September to $272,000 last month.
2) 375 Dunns Rd, Otatara, Invercargill
A cabin in a holiday park, a short drive from Invercargill and a walk to the beach. Two bedrooms, one bathroom, asking $35,000.
Where would you work?
Most Otatara residents are listed as “professionals” in the Census. Education and training is the biggest employer. Otatara’s unemployment rate is 2.8 per cent, compared to 6.2 per cent for the rest of Invercargill.
What might you earn?
The median income in Otatara is $38,400, higher than the Invercargill median of $27,400.
What about as a rental opportunity?
There aren’t a lot of rental properties in Otatara. More than 91 per cent of households own their home. For those that do rent, the median weekly rent is $270 compared to $200 for wider Invercargill. Otatara is popular with people buying their second or third home. This would be a unique rental property.
3) 82 Hastings St, Ohai
Two bedrooms, one bathroom, asking $35,000
Where would you work?
The most common occupation in Ohai is “labourer” and about 8.8 per cent of people are unemployed, compared to just 2.6 per cent for the rest of Southland. Mining is the biggest employer in Ohai.
What might you earn?
Ohai’s median income is $17,400, much less than the median $33,900 for all of the Southland District.
What about as a rental opportunity?
Just under a third of Ohai residents rent their homes, with a median rent of $100 a week, according to Census figures.
Carl Payne of real estate agency Locations said there was a shortage of properties for rent. He said investors were interested in the area but it is hard to get new listings to market.
“We’re getting inquiries from all over New Zealand for houses here but there is a lack of listings like everywhere else.”
4) 12 Johnston Rd, Nightcaps
Three bedrooms, one bathroom, asking $45,000
Where would you work?
Most Nightcaps workers report that they are labourers. Transport, postal and warehousing businesses are the main employers, followed by mining. The unemployment rate is just under 7 per cent.
What might you earn?
Nightcaps’ median income is $18,500.
What about as a rental opportunity?
Just over 30 per cent of households rent their homes, with a median weekly rent of $120. Nightcaps has the same lack of listings as its neighbour, Ohai.
5) 30 Oxford Street, Taylorville, West Coast
Two bedrooms, one bathroom, listed for mortgagee sale at $45,000
Where would you work?
West Coast’s unemployment rate was 4.4 per cent in the 2013 census but the region has been hit hard of late with a drop of almost a quarter in job listings year-on-year, according to Trade Me.
A $5 million fund has been set up by Development West Coast to provide loans to struggling commercial businesses.
What might you earn?
The 2013 census shows a median income of $26,900.
What about as a rental opportunity?
Almost 70 per cent of households own their own home. Those renting pay a median rent of $200.
Julie Coll, of Property Brokers Greymouth, said there was limited investor interest in the West Coast.
“I have had some buy houses and rent them out but they are not what you would call investors but people who are not ready to move or have bought to put family in it.”
REINZ data shows prices have decreased from a median $197,500 last September to $193,500 last month. But West Coast sales volumes were up 260 per cent in August compared to the year before.
Trade Me’s cheapest rentals:
* 76 Liverpool St, Riverdale. Southland $95 per week (one-bedroom cottage with sleepout)
* 55 Albion St, Mataura, Gore $100 per week (two bedrooms, one bathroom)
* 60B Hume St, Waitara $150 per week (one-bedroom unit, one bathroom)
* 1/50a Bignell St, Gonville $150 per week (two-bedroom unit, one bathroom)
* 8a Maitland St, Dunedin $150 per week (two bedrooms)
– Stuff.co.nz
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