Hi fellow immigrants. We moved here 2 years ago from the USA. We saw how horrifying the real estate downturn has been to our fellow Americans. Unfortunately, we're shocked at how oblivious our fellow Kiwis are about the devastating effects of falling house prices. Do your own research and make up your own minds, but if you're coming from abroad to settle here in New Zealand, and you're arriving with equity in your pocket, be VERY cautious about sinking it into another home in New Zealand. Prices are precariously "toppy". There's definitely a lot of the hallmarks of a serious downturn coming. It has already hit Australia. it's hit most spots in New Zealand too, but Auckland seems to be a bubble all its own.
You'd be smart to put your money in a Kiwi bank and earn 4 or 5% interest! Because after the property taxes (which have gone up 30%+ this year) and maintenance costs, it is VERY unlikely that your house will increase as quickly as a term deposit.
Beware also the Kiwi press, which is essentially The New Zealand Herald. We've found it to be terribly biased in favour of their major advertisers--you guessed it, real estate ads. The New Zealand Herald is complicit in a campaign to keep our fellow Kiwis unaware of the property bubble in Auckland. They especially need YOUR immigrant dollars to keep it going. But it's going to pop anyway, and you stand to lose most if not all of the equity you brought with you.
Unfortunately, renting in Auckland is not a piece of cake. It can be tricky. The long-standing culture of home-ownership has seriously short-changed the rights and opportunities for renters. But you already moved across the world--that proves you're adaptable and resilient. I highly recommend remaining adaptable and resilient and not capitulating to buying a new, over-priced home in Auckland just because the sorry rental market is holding a gun to your head.
Rent something a little less ideal for now, and buy something much more ideal in a couple years. You'll be very, VERY glad you did. This bubble is about to pop. Take it from some well-intentioned Americans who have seen it up close. Our friends in the U.S. who never believed their prized properties could go down are now in serious trouble. It looks to be exactly the same dynamic here. Delusional.
As a new immigrant, you're already going to have challenges ahead. Don't make going broke one of them!