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

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#2761602 17-Aug-2021 16:14

sbiddle:

Had a mail drop from a real estate company in the letter box yesterday advising a house a few doors down had sold for between $865,000 and $880,000 with the house last being sold in January 2019 for $465k

House prices in the Hutt are totally nuts - between probably 2005 and the end of 2017 there had basically been zero capital growth in prices in our area with another nearby that sold in mid 2017 selling for around 10% more than the 2005 price (sold for just over $300k). In 3 1/2 years prices have now basically gone up by 300%

What surprises me is how low lying houses close to the sea and on the waterfront are selling for such high prices when there are going to be rising sea levels, and more weather events like we have seen over the last couple of years in Wellington. Maybe they expect the taxpayer will bail them out.

IMO the real estate industry needs some heavy regulation and is one contributor with house prices going up so much. Our commissions are far higher than other countries so this is added onto the price each time it sells. IMO agents need to act in the best interests of both buyers and sellers.

mattwnz

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#2761617 17-Aug-2021 16:26

MileHighKiwi:

Our first home was in central Upper Hutt and cost $305k in 2009. Homes estimate today; $870k.

It's still a 'first home' only 100m2 with 3 beds and 1 bathroom.

The place we moved to in 2018 has almost doubled in value from $650k to 1.2m

Hard to see a way out of this.

The homes estimate now seems to be treated as the new version of a CV. Although agents do seem to be able to modify the amount when they put a house up for sale as the estimate sometimes jumps significantly when a house gets listed. So some houses seem to be going for quite a bit more than on the homes site. They do however tend to have a range of prices. All these estimates are usually based on the surrounding houses that have sold and not on the actual quality of the house, which is usually the same with CVs, unless you challenge the valuation with the council. Then they may send someone to value it.

Handle9

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#2761627 17-Aug-2021 16:30

MileHighKiwi:
sbiddle:
Had a mail drop from a real estate company in the letter box yesterday advising a house a few doors down had sold for between $865,000 and $880,000 with the house last being sold in January 2019 for $465k

House prices in the Hutt are totally nuts - between probably 2005 and the end of 2017 there had basically been zero capital growth in prices in our area with another nearby that sold in mid 2017 selling for around 10% more than the 2005 price (sold for just over $300k). In 3 1/2 years prices have now basically gone up by 300%

Our first home was in central Upper Hutt and cost $305k in 2009. Homes estimate today; $870k.

It's still a 'first home' only 100m2 with 3 beds and 1 bathroom.

The place we moved to in 2018 has almost doubled in value from $650k to 1.2m

Hard to see a way out of this.

The way out is similar to the way in. Make it easier and more attractive to build houses and fund sufficient infrastructure to support it.

There's no fast way out that doesn't have a heap of negative side effects. It's taken 30 years to get here, it'll take 30 years to come out of it via consistent policy and investment. Every day delaying is another 2 days of consequences.

mattwnz

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#2761677 17-Aug-2021 17:27

heavenlywild:

With the latest COVID case in Auckland, housing will not crash, it will boom even more,

A reminder to the people in power that OCR increases may need to be postponed until we have higher vaccination rates to ensure we don't have anymore lockdowns.

House prices have been largely based on what someone can afford to service the mortgage on. So there would be a ceiling, because peoples earnings aren't rising much, and there is other inflation occurring. Will the reserve bank reduce interest rates even more, when they need to control inflation?

I heard one of the big property experts on the radio in the weekend, and he was saying that people need to expect interest rates to rise to 4-5 percent within the next few years. I think some people with mega mortgages may struggle to service that.

Being a landlord and having rentals is often not easy. Lots of costs and potential hassles, compared to the capital gains. You can get them managed, but the costs of this can be very high, especially if it is an older house and needs regular repairs.

antonknee

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#2761712 17-Aug-2021 18:01

mattwnz:

Being a landlord and having rentals is often not easy. Lots of costs and potential hassles, compared to the capital gains. You can get them managed, but the costs of this can be very high, especially if it is an older house and needs regular repairs.

Yes leeches and parasites do often complain about how hard it is to suck blood all day long. Bold of you to assume landlords actually repair their rentals.

/S. kind of.

Plenty of upside for these poor souls. Can’t think of many houses that haven’t done exceedingly well out of capital gains over whatever time period you choose - more than enough to pay for any expenses and difficulties.

mattwnz:

House prices have been largely based on what someone can afford to service the mortgage on.

You’re one hundred percent correct. House prices have been decoupled from reality for a long while now.

Handle9

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#2761715 17-Aug-2021 18:02

antonknee:

mattwnz:

Being a landlord and having rentals is often not easy. Lots of costs and potential hassles, compared to the capital gains. You can get them managed, but the costs of this can be very high, especially if it is an older house and needs regular repairs.

Yes leeches and parasites do often complain about how hard it is to suck blood all day long. Bold of you to assume landlords actually repair their rentals.

/S. kind of.

Lol

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Divhon88

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#2761800 17-Aug-2021 19:59

Another lockdown. Another dash to the shops for toilet paper and auctions to stack up on Houses.

Geektastic

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#2761845 17-Aug-2021 21:52

Last year, I bought a house just before lockdown. This year..I am busy trying to buy a second one and what happens?!

Batman

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#2761850 17-Aug-2021 22:07

Geektastic:
Last year, I bought a house just before lockdown. This year..I am busy trying to buy a second one and what happens?!

It's your fault! ;p

mattwnz

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#2761869 17-Aug-2021 22:38

Geektastic:
Last year, I bought a house just before lockdown. This year..I am busy trying to buy a second one and what happens?!

Buying up Toilet paper and houses are the covid activities NZer are doing.

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#2761871 17-Aug-2021 22:41

i guess house price go up another 30% ?

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