Clearly the CV was wrong. Keeping going up Auckland Property Market :)

mattwnz:

 

bazzer:

 

It's 837m^2, someone will definitely subdivide and build on the back. A better headline would be CV half property's true value.

 

 

 Although it is only worth what people are prepared to pay. 

 

Exactly. Which is what in this case? 

keriboi:

 

Clearly the CV was wrong. Keeping going up Auckland Property Market :)

 

Will be really interesting to see how it works out over time. Apparently some foreign investors don't like buying brick houses, and also don't like buying in areas prone to earthquakes.  This could be why Wellington properties haven't moved much in price since 2007. Christchurch prices too seem to be going sideways. The problem for Wellington buyers I have found, is that Aucklanders are cashing up and buying in Wellington, but are blowing people out of the water with their offers. Had a few people I know whose tender offers were blown out of the water by cashed up Auckland buyers. Tenders though are terrible things for buyers. At least with auctions, what other people are offering is transparent.

darylblake:

 

Geektastic:

 

bazzer:

 

It's 837m^2, someone will definitely subdivide and build on the back. A better headline would be CV half property's true value.

 

 

 

 

I am not sure but don't property CV's get updated to sale values when they change hands? If not, they should.

 

 

 

 

If they did your rates would go through the roof

 

Perhaps thats the solution.

The banks can only loan up to 80% of the current RV, but rates are paid on the highest of RV or sold value.

This will pretty much mostly impact only Auckland.

sir1963:

 

darylblake:

 

Geektastic:

 

bazzer:

 

It's 837m^2, someone will definitely subdivide and build on the back. A better headline would be CV half property's true value.

 

 

 

 

I am not sure but don't property CV's get updated to sale values when they change hands? If not, they should.

 

 

 

 

If they did your rates would go through the roof

 

 

 

 

Perhaps thats the solution.

 

The banks can only loan up to 80% of the current RV, but rates are paid on the highest of RV or sold value.

 

This will pretty much mostly impact only Auckland.

 

Yeah not a bad idea.  

In my area, the price sold sometimes doesn't affect the RV much at all. For example a house I was interested in had an RV of 540k. It sold for 650k, and the new RV released about a year after the sale is now 580k. So it has gone up a bit, but it also reflects that the buyer overpaid, as the RV is still less than they paid, but it was a high spec architecturally designed house which isn't usually reflected in RV's. They will only pay rates on the RV, not the price paid.  

I saw a story not that long ago about an Auckland property which had the house moved off, and they were now using it as a car park, run by one of these parking companies, which I imagine would make good money. But apparently they didn't have consent to do it. I think buyers are buying them as a form of land banking, while making as much money on them as they can now to try to cover the costs. You just need interest rates to rise a bit, and many people are really going to hurt.