From Debt to Deposit
Imagine you could press a button, and all the money StudyLink has spent on your degree jumps straight into your pocket. You don’t get your qualification, but what about a house?
Let’s take a look at what home you could buy with the debt you’ll accrue throughout a three year Massey degree in each campus city. I’ll be basing this on my own student loan, which is pretty much the standard: three years, max living costs, course costs each year and the paper fees. All-in-all it comes out at $50,000 for a recent graduate with no repayments.
Apparently, with that money as a 10% deposit, that’s $500,000 right there. So how does a half-a-million-dollar home compare to the average student flat, and what sort of money would you be spending weekly on a 30-year mortgage? Let’s take a look at our options…
Auckland… it’s not looking good for you kids. The best options I could find for a half-million (or less) are a one-bedroom apartment or a lovely empty plot of land an hour or two out of the city, perfect to park your car on to sleep in. We’ll stick with the apartment. It’s a good start with a pretty nice interior, but a 450k mortgage on a single bedroom? That’s a repayment price of $474.50 a week, although you’d be lucky to find a cheaper rental. Sucks for you in the big city, maybe stick to your degree.
Palmerston North, oh what a treat. With affordable and quality housing, the only downside is you’ll be stuck in Palmy for 30 years. Not sure if that’s a trade-off I’d take, but with that backyard? I’d consider it. For a solid three-bedroom home, it’s a measly $158 per room, per week on a mortgage. Good onya Palmy, that is one more reason the city is worth staying in, second only to the fact that it’s a relatively short drive to Wellington.
Wellington, if you like the beautiful views of urban development and someone else’s living room, look no further. With a two-bedroom apartment building just off Tory Street, your midnight trip for stoned snacks just got easier. You can brag to your mates about actual insulation and a kitchen that’s not 80 years old, sussed. At only $237 per room, per week, it’s probably better than paying the same amount for a Newtown shithole… Do you really need that Art degree?
Let’s be real, none of us are going to have $50,000 dollars lying around for a loan anytime soon, but it’s nice, albeit somewhat depressing, to dream a little. Half-a-million dollars sounds like a lot to someone who can barely afford groceries, but as far as housing goes it doesn’t get you far. Maybe ease up on the smashed avos? You’ll be a millionaire in no time.