Maybe you’re in Auckland with your deposit ready to go for a house. Or maybe you’re looking to purchase your next investment property. For fun, we scoped out TradeMe to see what a million dollars buys you at the moment. The difference is… vast.
It will come as little surprise to you that a million dollars doesn’t buy you a whole lot. For our largest city, you can get this 125sqm, 2 bedroom home in Point Chev. The section is 347sqm.
You get a little more bang for your million bucks in Tauranga. The section is a little bigger at 481sqm, the floor area is almost double the size at 240sqm. It has 4 bedrooms and is brand new.
At about the same floor size, a million dollars gets you a Tauranga comparable. This house is 190sqm and on a slightly larger 533sqm of land. It has 3 bedrooms, which is less than the Tauranga house but it also has what Wellington excels at… views.
As we move further down the country, a million dollars takes on a whole new meaning. Scroll up, look at that Auckland house again. Now realise that the same amount of money buys you an 898sqm section and this castle. The ad doesn’t say what the floor area is, but it has enough parking for 6 cars and the photos show enough living-room area to swing a cat.
(Additional note, Mortgage Lab does not condone cat swinging)
A million dollars buys you not one, not two but three flats in this very large property in Dunedin. With a total floor area of 390sqm, it is over 3 times the size of the Auckland property. The ad also tells of about a 10% return which I would also guess is about 3 times the Auckland property. Whether the long-run capital gains could match or even come near Auckland is the reason some will choose this villa and some will choose one of the others above.
Speaking of capital gains, we thought it would be fun to see what we could have bought with a million dollars 100 years ago. It’s hard to find good property details but we did find the Statistics Yearbook from 1918 here. In 1918, you could have bought:
No reduction of the OCR Despite the diversity of opinions of whether to cut or not to cut the Official Cash Rate to 0.25%, the Reserve Bank unexpectedly held interest…
What is the OCR? The OCR is an interest rate set by the Reserve Bank of New Zealand which defines the wholesale price of borrowed money. This directly affects the…
If you have less than 20% deposit, you are referred to (by the banks) as a Low Equity (or Deposit) Borrower. You are required to meet a different set of…