The cost of being: An ‘accidental landlord’ saving for renovations

As part of our series exploring how New Zealanders live and our relationship with money, a community engagement worker in a small town explains how they became an accidental landlord, and where their money goes.

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Gender: Female.

Age: 37.

Ethnicity: Pākehā.

Role: Community engagement.

Salary/income/assets: Salary $105,000. I have a rental property – became an accidental landlord after moving in with my partner. It’s worth around $450,000 and the mortgage is just under $300,000.

My living location is: Small town.

Rent/mortgage per week: I pay $125 a week rent to my partner which covers all bills – he’s mortgage free! The mortgage payment for my rental is $440 weekly. I receive $430 a week in rent, which covers most of the mortgage payment. I have to fund insurance, rates, and maintenance with my salary.

Student loan or other debt payments per week: No debt! (I used to be in a lot of dumb debt so this feels pretty great to write.)

Typical weekly food costs

Groceries: $320 a week for two people.

Eating out: We don’t go out too often, maybe $150 every two months (for me and my partner).

Takeaways: $50 for me and my partner.

Workday lunches: I very rarely buy lunch. Could be a $18 salad once a month.

Cafe coffees/snacks: This is my downfall. Probably $25 a week on coffee and a cheese scone. And around $12 a fortnight on an expensive smoothie.

Other food costs: $6.50 for a loaf of sourdough from the local bakery.

Savings: I have a $10,000 emergency fund (in case I find myself without a regular salary). I have $1,000 for short term things like car bills. I have around $1,000 invested. Next step is to save up for some renovations and then pay down the mortgage faster. I have around $30,000 in KiwiSaver.

I worry about money: Sometimes.

Three words to describe my financial situation: Privileged, secure, growing.

My biggest edible indulgence would be: Cheese scones (with butter).

In a typical week my alcohol expenditure would be: $10.

In a typical week my transport expenditure would be: $50 for fuel – unfortunately no reliable public transport in this small town.

I estimate in the past year the ballpark amount I spent on my personal clothing (including sleepwear and underwear) was: $1000. I went through my bank statement and that was more than I was hoping. I went to a couple of really great gigs this year and spent several hundred on band T-shirts.

My most expensive clothing in the past year was: A dress to wear out to dinner on a trip to Australia – $145.

My last pair of shoes cost: $107 for a pair of Converse high tops (a wardrobe staple).

My grooming/beauty expenditure in a year is about: My biggest indulgence is getting my eyebrows tinted and waxed, and eyelashes tinted monthly. That adds up to $660 per year. Haircuts $240 per year. Skincare $200 and makeup $100.

My exercise expenditure in a year is about: $2,340 on the gym (that’s 3 x weightlifting classes per week). I’d say about $400 on shoes, activewear and hiking equipment.

My last Friday night cost: $55.57 – had a wine and some food with a friend and I shouted (a very rare Friday night out).

Most regrettable purchase in the last 12 months was: An expensive handbag – I love it and it will last a long time but I didn’t really need it.

Most indulgent purchase (that I don’t regret) in the last 12 months was: A hiking trip to Fiordland National Park.

One area where I’m a bit of a tightwad is: The power bill. I am constantly turning off lights and appliances at the wall – much to the annoyance of my partner.

Five words to describe my financial personality would be: Conservative but allows treats.

I grew up in a house where money was: Very tight. It was money in and money out.

The last time my Eftpos card was declined was: I can’t remember a specific time but it would happen quite often when I was in my teens and I’d want to buy a drink at the dairy the day before payday. Before internet banking!

In five years, in financial terms, I see myself: With an upgraded rental property but still a manageable mortgage.

I would love to have more money for: Investing and overseas travel.

Describe your financial low: In my 20s and just constantly being in around $2,000 of debt and not really understanding the consequences.

I give money away to: The local rescue helicopter and Women’s Refuge.