Real estate, post COVID-19 level 4 (since 2020)

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#2539856 13-Aug-2020 08:35

dafman:

Anyone remember the days when houses used to be the thing you lived in?

I do.

And it still is...I've been in the same house for 20 years and increases in value are relative.

I don't think of it as an investment (for monetary gain). I think of it as my home.

Yes it's worth 5 times what we paid for it, but so is everything that we would potentially move to, so it's not like we've really made any money at all.

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#2539931 13-Aug-2020 09:34

I see my primary residence as both a home and an investment. It is part of our retirement plan which includes our home, kiwi saver, a selection of managed funds and other share investments, overseas pensions and super funds as we've spent most of our working careers outside of NZ.

We plan to retire outside of Auckland so when the time comes to sell up and move I expect we will be able to free up quite a bit of equity from the sale of our home. If even if we do retire in Auckland we expect to be mortgage free when we do so having a home with no mortgage/rent can also be seen as a retirement strategy.

alasta

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#2539986 13-Aug-2020 10:47

My house is an investment because the imputed rent is about $100 a week cheaper than the market rent for the same property.

Interest rates are low, and rents in Wellington are nuts.

kingdragonfly

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#2540311 13-Aug-2020 15:51

If you want to see how bad the real estate market is, check out my thread on a mortgagee sale

I didn't win. One poster said I dodged a bullet. and another sai it was a dumpster fire.

I put in an offer of 3/4 of QV.

There were 17 offers.

I did not make the top 3.

Granted I asked for a clear title condition, so it may have been turned down for that.

quickymart

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#2540582 13-Aug-2020 22:19

kingdragonfly:I asked for a clear title condition...

Dumb question, but what is this?

Also: https://www.oneroof.co.nz/news/38272

Handle9

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#2540586 13-Aug-2020 22:34

kingdragonfly: If you want to see how bad the real estate market is, check out my thread on a mortgagee sale

I didn't win. One poster said I dodged a bullet. and another sai it was a dumpster fire.

I put in an offer of 3/4 of QV.

There were 17 offers.

I did not make the top 3.

Granted I asked for a clear title condition, so it may have been turned down for that.

I can't see why clear title would have stopped your offer. Vacant possession may have been a different story.

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#2540630 14-Aug-2020 02:08

alasta:

It'll take another month or two to get a clear sense of where exactly the market is going. Core Logic are still picking price drops, but less than what's been forecast by economists and also less than the aftermath of the GFC.

Will be interesting to see how any possible second lockdown will affect house prices now going forward. I suspect not much, because it looks like everything such as wage subsidies etc are going to get extended in Level 3 + areas.

But the virus reemergence may change the mind of a lot of people returning to NZ. This may not be a bad thing in terms of keeping the virus out, and reducing demand for housing.

kingdragonfly

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#2540642 14-Aug-2020 07:57

quickymart: Dumb question, but what is this?

Also: https://www.oneroof.co.nz/news/38272

No. Wow, I'm constantly shocked at house prices in Auckland.

They are far and above comparable prices in most of the US, excluding areas like Mountain Village / Colorado, Greenwich / Connecticut and Boca Grande / Florida, Honolulu / Hawaii

Fun Fact: Beverly Hills is not the most expensive neighborhood in California. Atherton California is, at a median price of NZD ten million.

quickymart

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#2540643 14-Aug-2020 08:00

That's what I worry about, especially for my boys as they get older and - one day - will probably want a place of their own too.

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#2547051 21-Aug-2020 14:23

The OP mentions houses getting cheaper in Dunedin.

For reference, I put my home in Dunedin on the market last Thursday, I had a contract on it 6 days later, unconditional and for the exact amount I wanted, which was right on/just above what homes.co.nz estimated.

We had 3 offers all within those 6 days, and only open homes the Saturday/Sunday.

Gotta say, I'm pretty happy with that :)

I was planning to sell this year, and thought I'd do it now while the market here is still high, as I do have suspicions that ones the mortgage holidays end, there may be a lot of mortgagee sales..

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kingdragonfly

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#2547113 21-Aug-2020 15:16

In New Plymouth, the real estate market is very hot.

I put in an unconditional offer on a 1940's house, stucco exterior, painted in 1960's colors, with a lot of potential asbestos, a leaky chimney flu, an overgrown yard, rotting shed, 1960's kitchen, rough and a little leaky roof, and the smallest shower I've ever seen.

I put it in an unconditional offer of $20K less than the QV, figuring it would need $80K in work.

I was told there was an another unconditional offer, which was a lot higher than mine.

I really need to wait to the market cool's off.

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#2547125 21-Aug-2020 15:53

quickymart:

That's what I worry about, especially for my boys as they get older and - one day - will probably want a place of their own too.

The problem is that these days people are buying multiple houses, rather than just one, because they are seen as investments. So that increases the competition. Especially as interest rates in banks are now so low, that people are moving that money out. If you look at the breakdown of how many houses politicians own, many own multiple properties. A large part of NZs economy is around houses.

As interest rates are now so low, houses are still quite affordable, even though house prices have increased so much. But the problem IMO is the ratio between house value to average income in NZ. That ratio shows that NZs house prices are way too high, and some of the highest in the world. That is not a good thing , and this shows, based on home ownership now being so low.

martyyn

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#2547129 21-Aug-2020 16:06

Offers less than QV ?

A three bed around the corner from us with a QV of $400k (albeit Aug2017) just went for $650k. It's just impossible to value the houses around us.

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#2547132 21-Aug-2020 16:09

martyyn:

Offers less than QV ?

A three bed around the corner from us with a QV of $400k (albeit Aug2017) just went for $650k. It's just impossible to value the houses around us.

Yeah, I don't get that Either, QV $550,000 here, and sold for $670,000 after only 6 days.

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#2547134 21-Aug-2020 16:16

martyyn:

Offers less than QV ?

A three bed around the corner from us with a QV of $400k (albeit Aug2017) just went for $650k. It's just impossible to value the houses around us.

That sort of difference seems quite normal these days, because I suspect that the e-value on the property is closer to 650k than 400k?. People used to have price expectations based around the RV. But now it appears that peoples price expectations are based around property Evalues, which websites like Trademe and Homes display, which appear to be more up to date estimates based on houses that have sold in the area recently. So people appear to use those as their baseline of expectations, plus a margin. IMO that may have also helped to increase prices, because people now no longer need to wait every 3 or so years for the new RVs to be released. Continually lowering interest rates IMO play a big factor in house price growth, and it may only get worse if/when the OCR goes negative, and interest rates drop more. Will be interesting to see. I hope house prices do drop, but can't see it happening unless the unemployment rises a lot in the coming year

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