190sqm for a 3 bedder is huge tbh. 

heavenlywild:

 

eracode:

 

Our adult son listed his home in Auckland yesterday. It's a very well-presented 190 sq m, 3-bdr, 10-yo, 2-storey home on a small section.

 

Even under current Level 3 viewing conditions, the agent says already she is inundated with enquiries from people wanting to make a time to visit it. After less than 24 hours the Trademe version of the listing has nearly 1,500 page views. I don't really know if that's a lot for real estate but sounds a lot to me.

 

 

Goodness, and imagine when we are at level 2 or 1 + the peak summer season. I think we have yet to peak in prices!

 

People have got very little else to do under level 3,

I imagine trademe's metrics in Auckland are pretty much through the roof...

heavenlywild:

 

It's amazing how quickly we forget and get used to seeing particular prices for things.

 

I agree with you to an extent - but also hasten to point out that petrol prices have not risen nearly as much by dollar amount (nor as quickly) as property prices, which are now astronomical.

Petrol prices -while higher than, say, December 2008 (I remember $1.30 for a litre of 91) are still manageable for most people. House prices are definitely not, not by a long shot.

GV27:

 

190sqm for a 3 bedder is huge tbh. 

 

You're quite right - I checked and see it's actually 172 m2. Sorry my memory ain't what it used to be.

heavenlywild:

 

The fact prices are still going up even during lockdown tells you the housing beast is only going to get bigger and uglier over summer.

 

Well, managed to buy my first investment property, maybe not the best time because of the tax changes but it is what it is.

It is exactly the same like our one what we bought 3.5 years ago only on a slightly larger section and next to it.

Price changed from $540K to $850K, and big thanks to ASB who got the loan sorted with my current tricky circumstances :)

So it is not impossible to buy property, even with located outside of NZ for some time because of lockdown :(

engedib:

Well, managed to buy my first investment property, maybe not the best time because of the tax changes but it is what it is.

It is exactly the same like our one what we bought 3.5 years ago only on a slightly larger section and next to it.

Price changed from $540K to $850K, and big thanks to ASB who got the loan sorted with my current tricky circumstances :)

So it is not impossible to buy property, even with located outside of NZ for some time because of lockdown :(

I have pretty strong feelings about non-resident Kiwis buying investment properties tbh.

GV27:

 

I have pretty strong feelings about non-resident Kiwis buying investment properties tbh.

 

What is the objection? We are just temporarily in Europe for family reasons until this Covid madness eased a bit and can return to NZ without any hassles.

engedib:

 

What is the objection? We are just temporarily in Europe for family reasons until this Covid madness eased a bit and can return to NZ without any hassles.

 

Temporarily is a different kettle of fish.

mudguard:

engedib:

 

Well, managed to buy my first investment property, maybe not the best time because of the tax changes but it is what it is.

 

 

 

It is exactly the same like our one what we bought 3.5 years ago only on a slightly larger section and next to it.

 

 

 

Price changed from $540K to $850K, and big thanks to ASB who got the loan sorted with my current tricky circumstances :)

 

 

 

So it is not impossible to buy property, even with located outside of NZ for some time because of lockdown :(

 

Well I don't think anyone thought buying an investment property was difficult.

First home is the issue. Especially if the deposit requirement went from $108K to $170K!!

A couple earning $70K each with 8% KiwiSaver, the total net income is around $8K / month.

Let's say 2K for rent another 2K for food, groceries, car, other expenses, sorry not much allowance for eating out, $6 coffees + $6 muffins twice a day and expensive fun trips.

Without calculating any interest on the savings, in 3 years that's $144K + being able to draw the KiwiSaver for the first purchase. I think it's doable just need some discipline and savings plan.

engedib:

 

A couple earning $70K each with 8% KiwiSaver, the total net income is around $8K / month.

 

Let's say 2K for rent another 2K for food, groceries, car, other expenses, sorry not much allowance for eating out, $6 coffees + $6 muffins twice a day and expensive fun trips.

 

Without calculating any interest on the savings, in 3 years that's $144K + being able to draw the KiwiSaver for the first purchase. I think it's doable just need some discipline and savings plan.

 

So they get to $144K. What have prices increased by in the three years? Given NZ's median income is about $56K PA a couple earning $140K is not the norm.

mudguard:

 

engedib:

 

A couple earning $70K each with 8% KiwiSaver, the total net income is around $8K / month.

 

Let's say 2K for rent another 2K for food, groceries, car, other expenses, sorry not much allowance for eating out, $6 coffees + $6 muffins twice a day and expensive fun trips.

 

Without calculating any interest on the savings, in 3 years that's $144K + being able to draw the KiwiSaver for the first purchase. I think it's doable just need some discipline and savings plan.

 

 

 

 

So they get to $144K. What have prices increased by in the three years? Given NZ's median income is about $56K PA a couple earning $140K is not the norm.

 

Well, if the income is too low, why not invest into learning something new which is at high demand on the job market instead of endlessly rolling the FB feed :D

engedib:

 

Well, if the income is too low, why not invest into learning something new which is at high demand on the job market instead of endlessly rolling the FB feed :D

 

You do realise a lot of professional wages are still basically what they were a decade or more ago?

But sure, take on additional student debt to try and catch up to property prices that are increasing 30% year on year, when most employers plan on offering payrises of less than 3% if any at all.

engedib:

 

Well, if the income is too low, why not invest into learning something new which is at high demand on the job market instead of endlessly rolling the FB feed :D

 

I think you've misread the room here. This whole thread has almost exclusively been about first home buyers inability to buy. So to come in and say it's possible to still buy an investment property smacks a bit.

I've no idea of your personal finances. I don't know if you used existing equity to purchase your investment property or had the cash. What we do know is that the price went up enormously in the interim and you were still able to do purchase.

Telling people to knuckle down, upskill and save harder is what I hear from the older people I play golf with a lot. This whole thread has pointed out it doesn't work. People cannot save fast enough to keep up with the deposit requirements as prices increase. What is the income to price ratio now? It's insane. 

How did you fund your first investment property?