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The value of the first home bought in Auckland by a software engineer who immigrated from Sri Lanka to New Zealand four years ago is rising at $4,000 a week, well exceeding the income from his high-paying job.
Now, Manoj Alwis, 36, is considering adding $50,000 in additional debt to his mortgage to buy a car — he wants to buy an all-electric Tesla.
"My property price is rising every week, the equivalent of 4,000 a week." Alwis said he conducted an online assessment of the property's value based on data on OneRoof.
"I'm going to buy a good car now. For $50,000, I could add a little more to my mortgage. ”
Last November, he spent $620,000 on a new two-bedroom Takanini home, which he said was worth $730,000 by July.
Today, the valuation of a property in the same place shows as $825,000.
In about a year, the value of the house rose by 205,000, equivalent to nearly 3942 knives / week.
Next month, he'll start a new job, and his house appreciates almost twice as much every week as his pre-tax income.
That's what worries Reserve Bank President Adrian Orr. The central bank says house prices in New Zealand are above sustainable levels.
Since the outbreak of the epidemic, the basic demand for housing has declined considerably due to the low growth of the immigrant population.
At that time, construction was at an all-time high, and lending rates were rising. Household debt is a concern, especially if other economic factors affect people's ability to repay their mortgages.
But Alwis is optimistic, saying his career is better than ever and he now has a new position with the most he's ever earned in New Zealand.
He felt that his emigration had been successful and now all he hoped for was to find the right person to be his partner.
Alwis, who came here in 2017, said the key to buying a home was to work hard to save and reduce expenses, while he had a reasonable income from a good education.
He gave up on takeout and only drank a bottle or two of beer occasionally on social occasions.
"As a single person, after so much hard work, this is a great milestone. The most important thing is that you should have a goal and motivation. He wrote in a social media post sharing how he bought a home.
Alwis saved $62,000 over three years while also supporting his mother in Sri Lanka by sending her $250 a month for medical and health care needs.
When he bought a house last year, he had previously earned 82,000/year at the University of Auckland, and he said that now his income at a new company has exceeded that figure.
Since then, he has changed his business and earned more.
He didn't recruit roommates and paid all the loans himself.
REINZ said this week that home prices nationwide soared from 747,000 last November to 925,000 last month. The Auckland median rose 26 percent in a year, from 1.03 million in November to 1.3 million last month — another record median.
Alwis is a Buddhist who believes in karma and doing things for others, but he says he is "rational" about religion and seeks to be kind to others.
In 2019, he took his mother on a two-month visit to New Zealand, which he said made him "very happy" and proud. His father died a few years ago.
He sent his mother $250/month for "medicines, doctor's examinations, and donations to temples and the poor".
Pre-immigration
As a newcomer alwis has other items on his wish list, he is looking for love. "I want to settle down, it's a little hard to find a New Zealand girl..."
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