Real estate, post level 4

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#2870009 17-Feb-2022 06:03

The new lending regulations really must have put a dent in the market. We were looking at refinancing and drawing down some equity from our Nz house. We’ve got something in the region of 65% equity and income was clearly fine. We would have drawn down around 6-7% of our equity.

Regardless of this the lender said they have a 20 working day minimum processing time and we’d have to go through the fairly ridiculous level of analysis the do now.

We ended up deciding to cash up some investments instead but it must be damn hard to buy any property in NZ at the moment.

GV27

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#2870014 17-Feb-2022 06:52

Handle9:
GV27:

There just won't be enough money circulating in the economy unless something is done to reduce accommodation costs and owner-occupiers given a soft-landing so they don't just go to the mattresses

You can have one or the other. You can’t have both. Someone is getting screwed, it’s more about how many by how much.

The only real hope for housing is for high inflation coupled with low housing demand. That has a whole heap of other, very negative, consequences.

That's why a creative way to deal with the problems we have on both fronts is needed. Just letting RBNZ constantly overshoot inflation targets in an economy where housing sucks up a huge percentage of disposable income isn't sustainable.

Gonna be a lot of recent FHBs who would rather just up sticks and have a crack at Australia so they can have a shot at retiring as opposed to working into their 70s to get out of negative equity if prices look like walking back 40% or so. NZ is not a particularly appealing place to live at the moment, so I wouldn't be surprised if we start seeing some next-level brain drain in the coming years.

I've already come to accept that I will likely not get to retire, but the choice is realistically to either save for that or pay down the mortgage on our starter home. A bigger house is simply out of the question at this point. I didn't go into the profession I did to have to worry about such things, but the country that I live in is very different from the one I grew up in.

Handle9

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#2870024 17-Feb-2022 07:19

If you have transferable skills I don’t see why you’d stay in Auckland. I don’t plan to live there again.

I spent the first 42 years of my life in Auckland, I wish I’d left sooner. I’d be far better off.

mudguard

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#2870027 17-Feb-2022 07:28

Handle9: The new lending regulations really must have put a dent in the market. We were looking at refinancing and drawing down some equity from our Nz house. .

There will be a few surprises for some in this regard, there was an article maybe in Stuff recently about a couple who sold their rental and were made to pay down the mortgage on their owner occupied house rather than spend any of the money. As per usual, there will be more to it than that (sounded like one half went studying full time) and incomes will have changed and likely the bank didn't find out until they went to redoc.

GV27

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#2870032 17-Feb-2022 07:40

Handle9: If you have transferable skills I don’t see why you’d stay in Auckland. I don’t plan to live there again.

I spent the first 42 years of my life in Auckland, I wish I’d left sooner. I’d be far better off.

Quite simply: Family. All my family is here and we have a young one so need the support.

Plus, there is the sheer-bloody-mindedness brought on by the fact that I was born here and I don't see why the solution to it being too expensive for young people to get by is for them to leave. I'm not the one who dicked the place up and crammed in more people than we could reasonably fit in with the infrastructure we've got, so I'll be damned if I'm going take a step backwards career-wise just to have some semblance of a lifestyle.

There's no easy option for us. Either we take a massive hit in incomes and career prospect and dislocate ourselves from family, or we stay local and keep treading water financially and never get to see our kid during the week.

The idea that I should be the one making compromises all the time pisses me off when we have a lot of very highly paid elected and non-elected officials who are paid specifically to solve these problems, but have totally failed in a way I could never get away with professionally. It really is a hopeless situation and very hard to not feel cynical and angry about it.

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#2870035 17-Feb-2022 07:50

Or you move to Brisbane, get a 30% uplift in salary, lower living costs, cheaper housing, better career prospects and a very generous super scheme.

I’m not saying it’s easy, especially with a very young child like you have. The first 12 months is a fairly miserable time, even without financial pressure. I just don’t see a way out in the next 10 years that doesn’t screw a large group of people.

GV27

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#2870086 17-Feb-2022 09:15

Handle9: Or you move to Brisbane, get a 30% uplift in salary, lower living costs, cheaper housing, better career prospects and a very generous super scheme.

I’m not saying it’s easy, especially with a very young child like you have. The first 12 months is a fairly miserable time, even without financial pressure. I just don’t see a way out in the next 10 years that doesn’t screw a large group of people.

That's an option I think most young people would strongly consider taking at the moment.

The problem with screwing a 'large group of people' is that if you screw the same group of people over and over again while protecting the people who have caused the problem and minted themselves, eventually that group gets fed up with it.

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quickymart

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#2870123 17-Feb-2022 10:24

I have no passion about living in Auckland (I'm not from here, so no real family connections) but my boys are at school here and not even 10 years old yet, so I'm going to be stuck here for a while.
Brisbane would have been okay about 15 years ago, but unfortunately I'm not in a situation where I can just up and move countries right at the moment.

kingdragonfly

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#2870173 17-Feb-2022 11:44

quickymart:
I have no passion about living in Auckland (I'm not from here, so no real family connections) but my boys are at school here and not even 10 years old yet, so I'm going to be stuck here for a while.

lxsw20

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#2870188 17-Feb-2022 11:47

While it wouldn't be fun moving kids to a new school, if that is truly all that's holding you back then.....that's not a lot that's holding you back.

quickymart

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#2870194 17-Feb-2022 11:51

One of them is special needs, so no, I can't just up and move schools. It's difficult enough getting him to move house, never mind school, or city (or country).

lxsw20

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#2870199 17-Feb-2022 11:58

Yeap, thats certainly changes things a bit.

GV27

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#2870202 17-Feb-2022 12:00

The idea that you should have to move city to avoid 'being held back' is exactly the problem I'm talking about.

It shouldn't be borderline impossible for white-collar professionals to afford to live in a city. The 'answer' can't be 'just move somewhere else'.

MikeAqua

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#2870208 17-Feb-2022 12:07

Handle9: Or you move to Brisbane, get a 30% uplift in salary, lower living costs, cheaper housing, better career prospects and a very generous super scheme.

I’m not saying it’s easy, especially with a very young child like you have. The first 12 months is a fairly miserable time, even without financial pressure. I just don’t see a way out in the next 10 years that doesn’t screw a large group of people.

I did a GAP year on the GC in the early 1990s. Building waterbed bases of all things. Had a fantastic time. Work paid well living was cheap, climate was nice, except for the height of summer (hot and wet). I imagine Brisbane would be similar.

Mike

martyyn

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#2870210 17-Feb-2022 12:10

GV27:

The idea that you should have to move city to avoid 'being held back' is exactly the problem I'm talking about.

It shouldn't be borderline impossible for white-collar professionals to afford to live in a city. The 'answer' can't be 'just move somewhere else'.

I don't mean to sound harsh, but I think you're being a little naïve.

This is life, if you can't afford something you need to look at something else.

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