Real estate, post level 4

Forums › Home Workshop DIY › Real estate, post level 4

1 | ... | 99 | 100 | 101 | 102 | 103 | 104 | 105 | 106 | 107 | 108 | 109 | ... | 172

254 posts

Ultimate Geek

#2789594 5-Oct-2021 09:20

mudguard:

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?

I have managed to increase my income at rural NZ from 40K to 120K in 10 years by upskilling and changing jobs.

For the investment property it was $150K deposit + $700K loan.

For the first house we were saving hard, doing extra jobs, overtime and used our Kiwisaver to buy it.

heavenlywild

5059 posts

Uber Geek

Trusted

#2789595 5-Oct-2021 09:21

Come back to topic, I have noticed a steep increase in asking prices post level 4 this time round. I thought it couldn't be possible but it has not only increased by surpassed the rate of increase compared to last year, in Auckland at least.

Case in point:

https://www.barfoot.co.nz/property/residential/rodney-district/silverdale/house/819334

This was asking 1.55m on 1 October, changed to 1.65m yesterday.

Edit: Type in the figures

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

heavenlywild

5059 posts

Uber Geek

Trusted

#2789597 5-Oct-2021 09:24

Please note the above, new build, off the plans, single garage, 300m2 land, roads are as narrow as anything. Not the best environment as it is in a very dense housing area with no schools nearby.

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

GV27

5896 posts

Uber Geek

#2789601 5-Oct-2021 09:26

mudguard:

What is the income to price ratio now? It's insane.

This is the thing that people don't get. There is a cold, hard statistical reality to the fact that houses cost 3x as much in wages as they used to, probably more in main centres. And even once you get a place to live in, it's harder to actually get ahead, even with low interest rates:

In Auckland, paying an average mortgage requires a household income of $170,000, nearly $30,000 higher than what the average household earns. Wellington city, similarly, requires an income of $170,000, around $20,000 higher than the average.

https://www.stuff.co.nz/life-style/home-property/300339165/the-housing-affordability-crisis-is-likely-worse-than-you-think

Worth remembering those are average wages - your bog-standard young couple is not going to be earning above the average household wage.

And also that there is a finite time to get ahead between when you can afford to buy a house with no dependents and when that becomes a pressing issue for biological reasons. Some things you cannot put off forever. So the window for 'getting ahead' is getting narrower and narrower for people who actually want to have families.

At some point, the boomer tropes aren't worth the paper they're printed on - even on the internet.

Handsomedan

7281 posts

Uber Geek

ID Verified

Trusted

Subscriber

#2789617 5-Oct-2021 09:51

heavenlywild:

Please note the above, new build, off the plans, single garage, 300m2 land, roads are as narrow as anything. Not the best environment as it is in a very dense housing area with no schools nearby.

$1.65m to be over the back of Silverdale? That's a long way from anywhere.

With that said, it's a larger section than many these days and is 5 bedrooms...although there's not much info on the size of the bedrooms.

Handsome Dan Has Spoken.
Handsome Dan needs to stop adding three dots to every sentence...

Handsome Dan does not currently have a side hustle as the mascot for Yale

*Gladly accepting donations...

heavenlywild

5059 posts

Uber Geek

Trusted

#2789653 5-Oct-2021 10:08

Handsomedan:

heavenlywild:

Please note the above, new build, off the plans, single garage, 300m2 land, roads are as narrow as anything. Not the best environment as it is in a very dense housing area with no schools nearby.

$1.65m to be over the back of Silverdale? That's a long way from anywhere.

With that said, it's a larger section than many these days and is 5 bedrooms...although there's not much info on the size of the bedrooms.

Far yes but extremely popular because it's 1 min from the motorway and there is an express bus service to the city that takes 40 minutes utilising the bus way.

This is just highlighting how much one has to spend to not get not much.

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

eracode

Smpl Mnmlst
8846 posts

Uber Geek

ID Verified

Trusted

Subscriber

#2789657 5-Oct-2021 10:14

heavenlywild:

Come back to topic, I have noticed a steep increase in asking prices post level 4 this time round. I thought it couldn't be possible but it has not only increased by surpassed the rate of increase compared to last year, in Auckland at least.

Case in point:

https://www.barfoot.co.nz/property/residential/rodney-district/silverdale/house/819334

This was asking 1.55m on 1 October, changed to 1.65m yesterday.

Edit: Type in the figures

The map on this listing showing the location of the property is way outta whack. It shows the property as being located at the far distant other end of East Coast Road, in Milford, just up from the end of Shakespeare Road - 22km from actual.

Also showing the local schools as Milford School, Westlake Boys and Girls etc. I just sent the agent a comment saying that I didn't realise Silverdale was in-zone for these schools - so it will probably change soon. Or maybe not.

Sometimes I just sit and think. Other times I just sit.

Equinox IT

Cloud spending continues to surge globally, but most organisations haven’t made the changes necessary to maximise the value and cost-efficiency benefits of their cloud investments. Download the whitepaper From Overspend to Advantage now.

Handsomedan

7281 posts

Uber Geek

ID Verified

Trusted

Subscriber

#2789660 5-Oct-2021 10:19

heavenlywild:

Far yes but extremely popular because it's 1 min from the motorway and there is an express bus service to the city that takes 40 minutes utilising the bus way.

This is just highlighting how much one has to spend to not get not much.

Yes...in truth it's probably better value than a house in say, "Orewa Heights". Little to no bus service and the same issues that this house has - little land, many, many houses on narrow streets and precious little off-street parking.

I remember looking at Millwater a few short years ago. We could have upgraded from our little 3brm crosslease house in the North Shore suburbs to a 4brm brand new (and fairly palatial, by comparison) home for about a $100k upswing.

Now we'd be looking at minimum of $400k increase and that's factoring in the huge jump in our property value.

Handsome Dan Has Spoken.
Handsome Dan needs to stop adding three dots to every sentence...

Handsome Dan does not currently have a side hustle as the mascot for Yale

*Gladly accepting donations...

quickymart

13925 posts

Uber Geek

ID Verified

#2789665 5-Oct-2021 10:25

https://www.nzherald.co.nz/business/auckland-house-sales-severely-curbed-by-lockdown-new-barfoot-thompson-data/L7QR35INJWWF54Z4P3JB66XDFU/

Sales might have been "curbed" but it sounds like prices haven't.

GV27

5896 posts

Uber Geek

#2789667 5-Oct-2021 10:31

Handsomedan:

I remember looking at Millwater a few short years ago. We could have upgraded from our little 3brm crosslease house in the North Shore suburbs to a 4brm brand new (and fairly palatial, by comparison) home for about a $100k upswing.

Now we'd be looking at minimum of $400k increase and that's factoring in the huge jump in our property value.

I'd have to double our mortgage to get a 4th bedroom. People mistakenly think that their house value is going up at the same rate as the price of their next house.

This isn't usually the case.

mudguard

2113 posts

Uber Geek

#2789673 5-Oct-2021 10:40

engedib:

I have managed to increase my income at rural NZ from 40K to 120K in 10 years by upskilling and changing jobs.

For the investment property it was $150K deposit + $700K loan.

For the first house we were saving hard, doing extra jobs, overtime and used our Kiwisaver to buy it.

Are you paying a penal rate on sub 40% deposit for the investment property? Was your deposit equity or cash?

That's another little hidden rule. It is possible to get get sub 20% deposits on owner occupied. But you'll pay a penal rate, which to be fair, isn't that high at the moment given rates are so low. What catches people out, is that penal rate is tied to your fixed loan term. So if you sneak over the 20% equity mark, that rate stays until you can modify your fixed term.

It caught some friends of mine out about a decade ago. They had 18 or 19% deposit, split the loan up on various fixed terms and couldn't do anything about the penal rate until the fixed terms came off.

heavenlywild

5059 posts

Uber Geek

Trusted

#2789675 5-Oct-2021 10:44

eracode:

The map on this listing showing the location of the property is way outta whack. It shows the property as being located at the far distant other end of East Coast Road, in Milford, just up from the end of Shakespeare Road - 22km from actual.

Also showing the local schools as Milford School, Westlake Boys and Girls etc. I just sent the agent a comment saying that I didn't realise Silverdale was in-zone for these schools - so it will probably change soon. Or maybe not.

The map is incorrect. The house is in Silverdale.

The reason why the map is incorrect is because the subdivision is new and is not displayed on the online maps yet.

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

alasta

6703 posts

Uber Geek

Trusted

Subscriber

#2789676 5-Oct-2021 10:44

engedib:

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

You're assuming everyone who needs a roof over their heads is a couple.

I have been single all my life and I'm too old to change that now. I would be stuffed if I were reliant on a partner to help me buy a house.

heavenlywild

5059 posts

Uber Geek

Trusted

#2789679 5-Oct-2021 10:45

Handsomedan:

Yes...in truth it's probably better value than a house in say, "Orewa Heights". Little to no bus service and the same issues that this house has - little land, many, many houses on narrow streets and precious little off-street parking.

I remember looking at Millwater a few short years ago. We could have upgraded from our little 3brm crosslease house in the North Shore suburbs to a 4brm brand new (and fairly palatial, by comparison) home for about a $100k upswing.

Now we'd be looking at minimum of $400k increase and that's factoring in the huge jump in our property value.

Many from the Shore are moving to Millwater, including those from central suburbs. The reason I suspect is some people are sick of old damp houses and would rather live in a new warmer house without the need for on-going renos.

However, prices in Silverdale has gone through the roof and is as expensive, if not more, than the Shore itself.

Buying a Tesla? Use my Tesla referral link and we both get discounts and credits.

eracode

Smpl Mnmlst
8846 posts

Uber Geek

ID Verified

Trusted

Subscriber

#2789682 5-Oct-2021 10:53

heavenlywild:

eracode:

The map on this listing showing the location of the property is way outta whack. It shows the property as being located at the far distant other end of East Coast Road, in Milford, just up from the end of Shakespeare Road - 22km from actual.

Also showing the local schools as Milford School, Westlake Boys and Girls etc. I just sent the agent a comment saying that I didn't realise Silverdale was in-zone for these schools - so it will probably change soon. Or maybe not.

The map is incorrect. The house is in Silverdale.

The reason why the map is incorrect is because the subdivision is new and is not displayed on the online maps yet.

I know the map is incorrect - that was my very point.

The reason it's incorrect is because the person setting up the listing made a mistake. The agent will change it - it's nothing to do with 'not displayed on online maps yet'.

EDIT: After I alerted the agent, it's now been fixed. And the subdivision is showing on Google Maps.

Sometimes I just sit and think. Other times I just sit.

1 | ... | 99 | 100 | 101 | 102 | 103 | 104 | 105 | 106 | 107 | 108 | 109 | ... | 172