Mary Holm: Small town, big financial freedom

Kawerau, with current mayor Malcolm Campbell, is a classic example of small New Zealand towns offering a chance to ditch the mortgage and the big-city stress along with it. Photo / NZME

Q: It appears to me that those people in your last column who are doing it tough, scrimping to stay afloat, are suffering unnecessarily. I find it hard to believe that living costs in all small towns are horrendously high.

I can only speak for my own small town of Kawerau, which is a pretty, well run town. The couple could move here and buy a decent house for $200,000 or less, which would allow them to get rid of the mortgage and give them upwards of $75,000 in the bank.

No longer paying the mortgage would give them another $350 a week to spend. The supermarket is a New World, the public library is free, as are the swimming baths - geothermally heated in winter.

I have just seen a house for sale in the centre of town, from where they could walk to the shops, for $112,000. What more would they want? There are so many places like this in this country.

A: Yes, I'm sure the cheaper housing in small towns can more than make up for other higher costs.

I hope last week's correspondents think again about getting out of Auckland. I know many other retired people are doing just that and really enjoying it.

Doing it tough

Q: Loved your recent article about getting a home on $30,000. Very inspirational. I actually emailed it to a lot of my friends who have been struggling for years to buy a house and having a ton of excuses for not being able to, despite being in the $60,000-plus [earnings] bracket.

There are a lot of people - not just in Auckland, not just in NZ but worldwide - living below their means, working extra hours and not taking flash holidays to put on Facebook, so they can save up over years to buy a house.

I am on $45,000 after tax, but work six days a week, sometimes 12-hour shifts to get it. I live in Auckland on a $600 fortnightly budget which has allowed me to save $29,000 for the last few years, but it was less in previous years due to being on a lower income.

Flatting helps keep rent costs down; living close to work keeps transport costs down; shopping in bulk, buying value brands and cooking at home helps the grocery bill. Little inconveniences equal big savings over time.