Note: We are referring to renting a traditional residential dwelling in NZ, not a HouseMe 'Rental'.

Housing in New Zealand has reached a tipping point. Rental prices continue to soar, leaving many wondering if they’ll ever escape the cycle of paying "dead money" to landlords without gaining any equity. If you’re currently renting, particularly in New Zealand’s high-cost regions, you might be missing out on a golden opportunity: owning your own home with a HouseMe unit, often without a drastic increase in your weekly costs.

Renting vs. Owning: The Numbers Don’t Lie

Renting in New Zealand’s current housing market is not only expensive but can also feel like throwing money into the wind. In contrast, financing a HouseMe unit offers a fixed repayment plan, allowing you to budget better and, ultimately, own your home.

1. Overview of HouseMe Unit Financing

At HouseMe, we’ve designed our financing options to make owning a home accessible to more Kiwis. Here's what our popular units look like when broken down by costs:

◼ 3-Bedroom Unit (12.5 x 4.4m)

Total Cost: $160,000 (including average delivery)

Weekly Repayments: $669 over 7 years

◼ 2-Bedroom Unit (12.5 x 3.6m)

Total Cost: $137,000 (including average delivery)

Weekly Repayments: $602 over 7 years

◼ 1-Bedroom Unit (12.5 x 3.0m)

Total Cost: $109,000 (including average delivery)

Weekly Repayments: $510 over 7 years

2. The Rental Market: What Are You Really Paying?

Let’s break down the average rental costs across key regions in New Zealand. These figures highlight just how much you’re spending every week without building equity:

• Auckland Region: Average rent – $750 per week
• Waikato Region: Average rent – $520 per week
• Central North Island: Average rent – $500 per week
• Palmerston North: Average rent – $618 per week
• Whangarei: Average rent – $600 per week
• Hawkes Bay: Average rent – $350–$550 per week
• Tauranga: Average rent – $400–$700 per week
• New Plymouth: Average rent – $365–$615 per week
• South Island (Main Regions): Average rent – $450 per week

3. Renting vs. Financing: Key Insights

Let’s compare renting with financing a HouseMe unit in some of New Zealand’s most popular regions:

◼ Auckland: If you’re renting at $750 per week, financing a 3-bedroom HouseMe unit at $669 per week could save you $81 weekly while giving you the added bonus of homeownership.

◼ Palmerston North: The rent averages $618 per week, while a 3-bedroom HouseMe unit costs $669 per week to finance. For a similar cost, you could stop paying your landlord’s mortgage and start paying your own.

◼ Whangarei and Central North Island: Financing a 2-bedroom HouseMe unit at $602 per week is a smart investment in your future, allowing you to build equity instead of just paying rent ($600 in Whangarei, $500 in the Central North Island).

◼ Hawkes Bay and New Plymouth: While rents here are lower, ranging from $350 to $550, financing a 1-bedroom HouseMe unit at $510 per week is still a better long-term strategy, allowing you to own an asset, not just pay for a roof over your head.

Renting vs. Financing: The Pros and Cons

To further illustrate the benefits of owning versus renting, let's break down the pros and cons:

Renting in New Zealand:

👍 Pros:

- Flexibility: You can move easily when needed.

- Lower upfront costs: No significant deposit required.

👎 Cons:

- At the mercy of landlords: Your rent can increase, and you have no control over it.

- No ownership: All your payments go to the landlord, and you build no equity.

- Instability: You can be asked to move out at any time.

Financing a HouseMe Unit:

👍 Pros:

- Fixed repayments: Your weekly repayments are locked in over the term, allowing for easy budgeting.

- Homeownership: Your money goes toward owning an asset, which builds wealth over time.

- Stability: No more dealing with landlords or sudden rental increases.

- Customisation: You own your home, meaning you can make changes or improvements as you like.

👎 Cons:

- Initial deposit: Financing requires an upfront deposit, though options can be flexible.

- Long-term commitment: You’ll be paying over the length of the term (7 years), but at the end of it, you own your home.

4. The Smarter Choice: HouseMe Financing

Renting may feel like the "easy" option, but it's also a pathway with no return on investment. Paying rent means paying someone else's mortgage with no equity or ownership to show for it.

On the flip side, financing a HouseMe unit is a smart financial decision for long-term stability. The difference between renting and owning, in many cases, is minimal, but the benefits of homeownership are massive. You’ll have a secure, high-quality home that's all yours. No landlords. No rent hikes. Just a clear path to financial freedom.

If you’re already paying high rent in places like Auckland, Palmerston North, or Whangarei, imagine reallocating that money into something that will be yours in the end—a HouseMe unit that you own outright.

Why pay off someone else’s debt when you could be paying off your own?

Ready to Make the Switch?

Explore our flexible FinanceMe options today and take the first step towards owning your own home. Let’s turn those weekly payments into something that works for you, not your landlord.

It’s time to make the smart move—choose HouseMe!

Finance Disclosure
HouseMe partners with Home Now Finance to provide financing options for our customers. When you apply for finance through HouseMe, your loan application will be processed and administered by Home Now Finance. For more information about their lending criteria, terms, and conditions, please visit Home Now Finance. All finance applications are subject to approval by Home Now Finance.