Renter would rather be paying off a mortgage

Matt Cotton has a good relationship with his landlords but is dreading the next rent hike. Photo / Greg Bowker

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World-Class Auckland: How to make houses cheaper

Greenlane renter Matt Cotton estimates he has sunk more than $100,000 in rent on his four-bedroom house since moving in four years ago.

He's been hit with two rent increases in the past year alone and is now bracing for a third.

The 38-year-old father of three originally leased his Campbell Rd home near Cornwall Park with his partner for $485 a week. But they split and he now has shared care of the children, paying rent, child support and living costs on a sole income.

"Life is difficult but we get by and have good fun and want for nothing. But we don't live an extravagant lifestyle. I go shopping before the kids arrive so there's food in the fridge. The rest of the week it's Marmite and Cruskits."

Mr Cotton has an open-ended tenancy and a good relationship with his landlords who have regularly mowed the lawns, installed smoke alarms and dropped tins of biscuits round each Christmas.

The 1950s house was unfenced so Mr Cotton spent about $1500 erecting a boundary wire to keep his children safe. It has basic insulation in the ceiling but is cold during winter. He pays his rent on time and looks after the property, even installing a security alarm at his own expense. But his rent was hiked twice in the past year. He is now paying $530 a week and expects another six-monthly rent review any day.

"Obviously it affects me. It's $500-$600 extra a year."

Mr Cotton owns his own business installing audio and video equipment. He would love to buy a house and is saving towards a deposit. However, with annual house price inflation of 26 per cent it's been impossible to get over the first hurdle and on to the property ladder.

"I'm 38, I'm trying to save a deposit. But I can't save enough to keep up with the rate that it's increasing.

"In saying that, what I pay in rent would be close to that of a mortgage."

He agrees tenancy arrangements are stacked in landlords' favour and that tenants live in fear of receiving a 90-day eviction notice. He worries about not getting his bond back when he moves out. It's money he will desperately need to secure his next property - hopefully not a rental.