New Zealand housing market (particularly Auckland)

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5288 posts

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#2082910 2-Sep-2018 21:41

Geektastic:

It's not MY 3% figure. It's the governments. It comes from Stats NZ

You're digging a deeper hole for yourself. You've selectively picked aggregate NZ wide figures to prove foreign buyers are not very active in the Auckland market.

In that same report...

"The proportion of overseas home buyers ...19 percent in the inner city (Waitemata) in the March quarter,” Ms McKenzie said."

In whatever case, foreign buyers are just one component of the puzzle. Low interest rates and inflexible zoning are also causing price increases.

mattwnz

20163 posts

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#2082925 2-Sep-2018 23:19

Wade:

I think directing immigrants into new builds is a brilliant idea, lets not curb immigration, there is a sense of irony that many new builds are physically being built by immigrants as we do not have sufficient workforce to keep up with demand. For the building sector, which overall is a huge component of employment in the NZ market, this building growth is critical, if we get nice parks, roads, shopping centres etc along the way then its even better

All depends on the quality of workers, and that overall the net benefit is positive for NZ long term. But that is very difficulty to quantify. Because increasing the population, increases the resources required to service that population growth. We haven't kept up with the housing requirements, let alone the infrastructure that is going to be need in the future. eg health, education, roading, public transport is just the start. Then we have super entitlements etc. No wonder they want to either raise the age or make it asset or income tested, as that is always the easy solution.

ShiroHagen

59 posts

Master Geek

#2083041 3-Sep-2018 09:56

Here’s my weekend experience.

4 Bdrm Open home in Central Auckland.

Last sold in Sep17 for 799K according to homes.co.nz. Cross lease section, circa 350 - 400sqm, 90’s era ex-monolithic clad leaker. Has had full weatherboard reclad (Feb18) and orig framing replaced or treated with product. Agent expects auction to get over 1.2 million. $400k+ gross profit (minus repairs of course) for a year’s work. Not too shabby. Even for a leaker.

So going back to OPs line of questioning, as long as people continue to see housing and property as a commodity to be profited off, the status quo will continue into the forseeable future because it’s simply a natural consequence of human behaviour.

IMHO pretty much the way Auckland houses could fall to a $200-$300K level is if the volcanic field became active again. Drive down the long term demand for people to live/work/play in Auckland and the prices will follow / shift to another NZ city as Aucklanders flee to another part of NZ. Short of natural disaster the cat has been well and truly let out of the bag for far too long for prices to ever drop that low again.

quickymart

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#2083057 3-Sep-2018 10:22

Sort of like what happened in Christchurch, post earthquakes?

Batman

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#2083060 3-Sep-2018 10:27

quickymart: Sort of like what happened in Christchurch, post earthquakes?

Post quakes prices just about doubled because of lack of houses. Same with Wellington.

kryptonjohn

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#2083085 3-Sep-2018 11:09

Batman:
quickymart: Sort of like what happened in Christchurch, post earthquakes?

Post quakes prices just about doubled because of lack of houses. Same with Wellington.

And no worries if you didn't have insurance, the tax payer will sort that out! :-\

Meanwhile, many others with insurance still waiting for claim settlements.

quickymart

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#2083495 3-Sep-2018 22:51

Well, I signed up for Kiwibuild, so let's see what happens.

Sharesies

Trade NZ and US shares and funds with Sharesies (affiliate link).

tdgeek

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#2083515 4-Sep-2018 07:24

quickymart: Well, I signed up for Kiwibuild, so let's see what happens.

In due course when you get told, yes we are ready to go soon, what choice will you have for location? I will off course be in your town, but would you be told, its in this section or that one, or in this subdivision? I've seen on the news, areas where it be subdivided that they bought, also a small street they will rebuild, and some state houses on large section they will develop. Interested to know the issues with choice over location and house design

Dulouz

883 posts

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#2083516 4-Sep-2018 07:29

You can whine about the property market all you like but history suggests nothing is going to change anytime soon. It's a cliche but you need to get on the ladder anyway you can. Beg, borrow, scrimp and save for a deposit for a postage stamp sized placed and you'll be on your way. If you wait for the Govt to help you'll be waiting a long time.

Amanon

tdgeek

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#2083519 4-Sep-2018 07:37

Dulouz:

You can whine about the property market all you like but history suggests nothing is going to change anytime soon. It's a cliche but you need to get on the ladder anyway you can. Beg, borrow, scrimp and save for a deposit for a postage stamp sized placed and you'll be on your way. If you wait for the Govt to help you'll be waiting a long time.

Little bit unfair. History was different. Houses are now 10X the average wage. Some have commented here on options, so its hardly whining

quickymart

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#2083606 4-Sep-2018 10:37

Dulouz:
You can whine about the property market all you like but history suggests nothing is going to change anytime soon. It's a cliche but you need to get on the ladder anyway you can. Beg, borrow, scrimp and save for a deposit for a postage stamp sized placed and you'll be on your way. If you wait for the Govt to help you'll be waiting a long time.

Good-o's, and if I'm already doing that and making absolutely no headway?

tdgeek

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#2083611 4-Sep-2018 10:50

quickymart:
Dulouz:

You can whine about the property market all you like but history suggests nothing is going to change anytime soon. It's a cliche but you need to get on the ladder anyway you can. Beg, borrow, scrimp and save for a deposit for a postage stamp sized placed and you'll be on your way. If you wait for the Govt to help you'll be waiting a long time.

Good-o's, and if I'm already doing that and making absolutely no headway?

Have you looked at a DIY entry onto the property ladder? A tired house, few repairs but not structural, etc

Fred99

13684 posts

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#2083689 4-Sep-2018 11:24

tdgeek:

quickymart:
Dulouz:

You can whine about the property market all you like but history suggests nothing is going to change anytime soon. It's a cliche but you need to get on the ladder anyway you can. Beg, borrow, scrimp and save for a deposit for a postage stamp sized placed and you'll be on your way. If you wait for the Govt to help you'll be waiting a long time.

Good-o's, and if I'm already doing that and making absolutely no headway?

Have you looked at a DIY entry onto the property ladder? A tired house, few repairs but not structural, etc

I've looked at that a few times for investment potential. Many other people are also looking at exactly the same thing - driving prices of doer-uppers up so much - that if you were to properly cost your own labour to carry out "cosmetic" repairs and renovation, you'd be better off spending that "spare" time flipping burgers at Maccas.

There will be hundreds of anecdotes "proving" me wrong. I think most of those don't take into account that between buying, doing up, and selling - most of what they think was capital gain from "improvements" was just from the general and recently rapid background increase in property prices. It's been a "can't lose" market where even if they'd done no renovations at all they'd still have probably reaped a huge capital gain.

tdgeek

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#2083698 4-Sep-2018 11:34

Fred99:

tdgeek:

quickymart:
Dulouz:

You can whine about the property market all you like but history suggests nothing is going to change anytime soon. It's a cliche but you need to get on the ladder anyway you can. Beg, borrow, scrimp and save for a deposit for a postage stamp sized placed and you'll be on your way. If you wait for the Govt to help you'll be waiting a long time.

Good-o's, and if I'm already doing that and making absolutely no headway?

Have you looked at a DIY entry onto the property ladder? A tired house, few repairs but not structural, etc

I've looked at that a few times for investment potential. Many other people are also looking at exactly the same thing - driving prices of doer-uppers up so much - that if you were to properly cost your own labour to carry out "cosmetic" repairs and renovation, you'd be better off spending that "spare" time flipping burgers at Maccas.

There will be hundreds of anecdotes "proving" me wrong. I think most of those don't take into account that between buying, doing up, and selling - most of what they think was capital gain from "improvements" was just from the general and recently rapid background increase in property prices. It's been a "can't lose" market where even if they'd done no renovations at all they'd still have probably reaped a huge capital gain.

Yes, you do get sellers who want too much for a fixxer upper, so when you work out the costs involved its not worth it. If you ignored your personal labour, that helps, using personal labour as the tool to avoid extra costs that you can't afford. And lessening the deposit so a mortgage can be got. Many people buy a house, do it up and sell, then do it again, so it can be done, but the main point is it reduces the price now, and the deposit now and gives more options for entry. The old rule was a $1 spent is $2 added, but here its more about getting in cheaper

Then you need to have a plan and STICK TO IT, so 10 years down the track you don't have holes and bare gibboard here and there

tdgeek

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#2083699 4-Sep-2018 11:37

Fred99:

There will be hundreds of anecdotes "proving" me wrong. I think most of those don't take into account that between buying, doing up, and selling - most of what they think was capital gain from "improvements" was just from the general and recently rapid background increase in property prices.

Over capitalising is a common problem. We all do that personally as it doesnt matter, but for a DIY venture "I wont be living here, do the right things, right" has to apply. This is for a profit venture, using DIY for entry, that rule wont matter

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