The house buyer's dilemma

A: You should buy a modest home or unit. It gets you into the housing market and gives you and the children more of a base. Landlords can't kick you out and it's easier to decorate the way you like, to develop a garden and so on.

If you make mortgage payments the same as your rent, of about $867 a month, you could get a 20-year, $106,000 loan on a five-year fixed rate of 7.6 per cent. By the time we add your savings and subtract purchasing and moving expenses, you have about $200,000 to play with.

It's still possible to buy a small home for that price in parts of Auckland and if you live elsewhere - or are willing to move - you'll get more for your money.

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