Real estate, post level 4

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#2837376 23-Dec-2021 13:41

Paul1977:

Can any eligible person just purchase the Kiwibuild one though, or is it like a lottery where heaps apply? E.g are you able to just phone up and purchase the one for $500,000 from Kiwibuild, and then just cancel the other and forfeit the deposit ($563,900 is still better than $639,000)? Or better yet try to find a loophole to get out of the contract and get deposit back?

If the $500,000 one is like a lottery, where you have only a tiny chance of getting it at that price then the $639,000 is a lot easier to swallow since it's guaranteed.

But how can Kiwibuild sell the exact same house for $139,000 less? Did the developers substantially drop the price, or is the Government just subsidising it?

You are correct I can't just walk or phone in even I haven't deposited in the first place and I would be gauranteed with that a $500,000 KB and if I could losing my deposit will still get me a better deal changing my purchase.

Definetely it will not be a similar house compare with the one with extra $139,000 on. The materials, design, ammeneties, will be of lesser quality. The size will probably be significanty smaller too.

However I still feel I'm missing out. I wouldn't mind a smaller house with lesser luxury as long as it will be comfortable (Home Star 6) and presentable (Brand new). I would have loved to diverted that $139,000 potential savings to a new Tesla, or travel and taking more time away from work than usual.

kingdragonfly

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#2837507 23-Dec-2021 19:00

Handsomedan:
Is this the future of suburban living in NZ?

These have been built just down the road from me (right on the edge of a new motorway), but they're a little different:

Lock-up studios, with shared living spaces/laundry/kitchen etc.

The Ultimate Modern Living Option | Collett Realty

I'd not keen with sharing a kitchen and living room with at 4 to 8 random people.

15 minutes north of Auckland. As mentioned overlooks highway .. but on ramp is 1.2 KM away.

600 meters from bus stop. Very high density housing. 4KM from large shopping center. Car park extra / not included.

All for $450/week.

Affordable rent rule-of-thumb is 30% of after-tax income

So to afford this place, you'd have to making $104,000/year.

Average salary in Auckland is $68,000. $275/week rent would be affordable at that level.

I did an informal look at Auckland central city rental markets today: 1.5% of Trademe listings were affordable on an average Auckland salary.

kingdragonfly

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#2838956 27-Dec-2021 10:51

The lure of riches brings out some dubious sellers.

I've previously noticed several houses sold "sight unseen", being dumped by the bank, where no one was allowed to enter the house, not even the real estate agent.

This Trademe ad has only this text: "Flat Corner Section for sale in Bell Block. This is a good opportunity to build your dream home in prime location. Call or email me today."

I put the address into the New Plymouth proposed district plan

Most of the property was an archaeological site, and classified as a Māori site of cultural significance.

When I emailed the owner, here's his complete response:

"Hi
Thank you for your inquiry.
For this matter, please contact NPDC directly.
Kind regards"

quickymart

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#2838966 27-Dec-2021 11:19

What lies ahead in 2022?

https://www.stuff.co.nz/life-style/homed/real-estate/127305870/what-lies-ahead-for-the-nz-housing-market-in-2022

quickymart

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#2840233 29-Dec-2021 22:46

https://thespinoff.co.nz/the-bulletin/07-09-2021/how-house-prices-are-dividing-the-country

Just had this article pointed out to me tonight, where it talks about house prices rising and how they're racing ahead of the inflation rate (which I understand is not what determines house prices in this country):

Looking at Auckland, Stuff reported on the fastest increasing prices across the city over the past 20 years. It found that areas with former state homes increased the fastest, with the median house price in Point England increasing by 616% over the past two decades. The median value in 2001 was $176,400. Had that house increased at the rate of inflation, it would cost $267,111 today. Instead, it’s now valued at $1,263,250.

Wouldn't that be lovely! 😀

Geektastic

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#2840240 29-Dec-2021 23:13

quickymart:

https://thespinoff.co.nz/the-bulletin/07-09-2021/how-house-prices-are-dividing-the-country

Just had this article pointed out to me tonight, where it talks about house prices rising and how they're racing ahead of the inflation rate (which I understand is not what determines house prices in this country):

Looking at Auckland, Stuff reported on the fastest increasing prices across the city over the past 20 years. It found that areas with former state homes increased the fastest, with the median house price in Point England increasing by 616% over the past two decades. The median value in 2001 was $176,400. Had that house increased at the rate of inflation, it would cost $267,111 today. Instead, it’s now valued at $1,263,250.

Wouldn't that be lovely! 😀

I don't think houses anywhere go up only by inflation. My parents bought their house outside London in about 1970 for £14,000. When my father died in 2013 my mother decided it was too large and sold it for £1.2 million. I did the inflation calculation on it and it would have sold for £450,000 or so if that had been the only factor acting on it.

There are many factors acting on house prices. The main one is of course the well known "location, location, location". Then there are school zones, transport routes and all that along with a bunch of intangibles - areas can be very fashionable and expensive then not so much and vice versa.

Whole towns can do that: my grandparents lived in Bournemouth on the south coast of the UK. in the first part of the 20th century it was a well to-do genteel place with many wealthy people who returned from service in the Empire and retired there in large clifftop houses with views of the Isle of Wight, the New Forest just down the road for nice country walks with the dog and so on.

Now Bournemouth is a pretty scuzzy place filled with bedsits and foreign language students. Many of the grand houses have gone and so have the better off people who used to live in them.

We tend to view property as a short term thing - not helped by almost weekly commentary on house prices - when really it needs to be seen in the long term to better identify trends in the market.

mattwnz

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#2840247 30-Dec-2021 01:00

quickymart:

https://thespinoff.co.nz/the-bulletin/07-09-2021/how-house-prices-are-dividing-the-country

Just had this article pointed out to me tonight, where it talks about house prices rising and how they're racing ahead of the inflation rate (which I understand is not what determines house prices in this country):

Looking at Auckland, Stuff reported on the fastest increasing prices across the city over the past 20 years. It found that areas with former state homes increased the fastest, with the median house price in Point England increasing by 616% over the past two decades. The median value in 2001 was $176,400. Had that house increased at the rate of inflation, it would cost $267,111 today. Instead, it’s now valued at $1,263,250.

Wouldn't that be lovely! 😀

It appears a large part of the price of a house is based on what people can afford to service on the mortgage for that property. So the monthly repayment amount hasn't changed all that much, due to interest rates continuing to drop. So these record low intrest rates are a big part of the problem driving up prices. The thing that has changed is the amount needed for a deposit, but many people are getting the bank of mum and dad to pay a large part of thier deposit, or an early inheritance etc. For many that is the only way to be able to afford to pay for the large deposits now needed. eg The deposit these days is not much less than the price of a house should be if it had risen with normal inflation. It is all crazy because it would take something like 50 years for wages to catch up with prices today.

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quickymart

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#2840918 31-Dec-2021 17:56

Possibly posted before, but some (bad) ideas to get house prices drop. Bad, according to this commentator:

https://www.oneroof.co.nz/news/40645

quickymart

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#2846598 11-Jan-2022 10:48

Kind of a good news/bad news situation now:

https://www.newshub.co.nz/home/money/2022/01/housing-average-asking-price-hits-14-year-high-but-number-of-homes-for-purchase-also-up.html

tdgeek

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#2846599 11-Jan-2022 10:55

quickymart:

Kind of a good news/bad news situation now:

https://www.newshub.co.nz/home/money/2022/01/housing-average-asking-price-hits-14-year-high-but-number-of-homes-for-purchase-also-up.html

Hard to know if that's representative. Lets say that as house prices are up and FHB are locked out, there are more upmarket houses being sold, rather than an average or median across all price levels? Say a scheme came in for FHB and they swooped in, in the lower price points and paid premium prices, you would find that the article will be about falling house prices as the sales of lower priced houses skewed the market. But in fact that example is one of higher prices