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  # 2095142 23-Sep-2018 14:55
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mudguard:

 

I'm sure my father quoted something like buying a house around 1980 for $70k earning $7k as a teacher. But that salary sounds very low. 

 

 

Maybe he was a primary school teacher. They now earn the same as secondary teachers but that has only been in the last two decades. Before that they earned only about 60% of a secondary teacher's salary.

 

 

 

P.S. The average wage in 1979 was ~$8,200 so $7,000 sounds low.

 

For comparison, my parent's house in Lower Hutt

 

1962 ~5,000 pounds = $10,000

 

1982 $45,000 sale an increase of 7.8% p.a.

 

2018 $455,000 capital value for rating a further increase of 6.6% p.a.

 

Overall house price increase 7.1% p.a.

 

Whereas the average wage increased 1.8% p.a. during the same period from about $1,600 to $64,000.




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  # 2095145 23-Sep-2018 15:00
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My aunty and uncle bought a house in 1972 for $1000, which they sold in 1982 to move to a bigger house they were building themselves (as they were starting a family) for $10000. Today the same house is valued at around $125000. Mind you, a dollar was worth a lot more back then.


 
 
 
 


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  # 2095151 23-Sep-2018 16:08
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Hammerer:

 

mudguard:

 

I'm sure my father quoted something like buying a house around 1980 for $70k earning $7k as a teacher. But that salary sounds very low. 

 

 

Maybe he was a primary school teacher. They now earn the same as secondary teachers but that has only been in the last two decades. Before that they earned only about 60% of a secondary teacher's salary.

 

 

 

P.S. The average wage in 1979 was ~$8,200 so $7,000 sounds low.

 

For comparison, my parent's house in Lower Hutt

 

1962 ~5,000 pounds = $10,000

 

1982 $45,000 sale an increase of 7.8% p.a.

 

2018 $455,000 capital value for rating a further increase of 6.6% p.a.

 

Overall house price increase 7.1% p.a.

 

Whereas the average wage increased 1.8% p.a. during the same period from about $1,600 to $64,000.

 

 

 

 

Would be interesting to compare with lending interest rate drops, and also the growth in two income families. The way the current system is setup, in order for house prices to continue to rise at the same levels, people need to earn more so wage growth has to be a lot higher. Also interest rates need to drop, so people can afford to borrow more, so they can afford to service that huge mortgage. It really isn't a good thing that houses are now so expensive relative to incomes, because thepoepl who have these huge mortgages will need to charge more. It reminds me of the whole student loan thing, where professionals who have loans can charge large amounts for services, and this house price/income ratio has just shifted that across the population..


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  # 2095152 23-Sep-2018 16:18
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pctek:

 

mudguard:

 

I'm sure my father quoted something like buying a house around 1980 for $70k earning $7k as a teacher. But that salary sounds very low. 

 

 

 

 

 In 1990 my husband earned $18 an hour, considered good money. He did get double time and all that as well.

 

We paid $23,500 for a house in 1978, interest rates in the 80s were in the high teens, early 20s...

 

 

 

 

 

 

I don't think high interest rates were such a bad thing, because it meant that houses were cheaper, as the market price is driven by what is affordable, which is relative to the interest rates at the time. So it meant that people weren't borrowing as much, but the interest rate was higher, so effectively the monthly repayments was possibly comparable. My parents purchased in the 80's and got a small loan, and that was when banks were very strict on what they lent on, and even the bank manager had to visit the house to check it! They are nowhere near as conservative these days!




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  # 2095270 23-Sep-2018 22:24
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Had this pointed out to me tonight:

 

https://www.bigmarket.co.nz/item/5aabbbc04b4cd93f974cc53e

 

That price is fairly low (IMO) for an apartment right in Auckland CBD. Okay, it's no good if you've got kids, but for a single person (maybe a couple, at a stretch) could it work? I would have expected the price in that location to be a lot higher, even for a studio apartment.


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  # 2095273 23-Sep-2018 22:30
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just remember if you want to catch a big fish, you need to dig for some worms to catch a small fish, use the small fish to catch a medium fish, and use the medium fish to catch a big fish. if that's you go for it. but just beware of what kind of "remedial costs" that the owner is fleeing from!





Involuntary autocorrect in operation on mobile device. Apologies in advance.


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  # 2095279 23-Sep-2018 23:59
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quickymart:

 

Had this pointed out to me tonight:

 

https://www.bigmarket.co.nz/item/5aabbbc04b4cd93f974cc53e

 

That price is fairly low (IMO) for an apartment right in Auckland CBD. Okay, it's no good if you've got kids, but for a single person (maybe a couple, at a stretch) could it work? I would have expected the price in that location to be a lot higher, even for a studio apartment.

 

 

 

 

It's tiny! A lot smaller than my garage. But I guess that is Auckland for you. Not a fan of body corporates myself either, due to the lack of control and fees etc. Some complexes seem to get around not using body corporates  by structuring things differently.


 
 
 
 


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  # 2095283 24-Sep-2018 01:05
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quickymart:

Had this pointed out to me tonight:


https://www.bigmarket.co.nz/item/5aabbbc04b4cd93f974cc53e


That price is fairly low (IMO) for an apartment right in Auckland CBD. Okay, it's no good if you've got kids, but for a single person (maybe a couple, at a stretch) could it work? I would have expected the price in that location to be a lot higher, even for a studio apartment.



Cost of the upcoming remedial works probably hasn't been paid for yet. Probably won't be allowed to live there while the works are happening. Unlikely to be able to get a mortgage from a bank unless you already own property.

Plus side: View over Myers park means no risk of another building blocking your view in the future. Close enough to the university's, that it should be easy to rent in the future if you decide to do so.

Possible option: Get mortgage from a finance company, as they have a lot less constraints on what they can lend on. Rent it out to take advantage of the tax rules for rentals. Meanwhile, see if you can go flatting, move in with family etc to save on your own rent. And hopefully be receiving more rent than what you are paying.

It will be a struggle for a few years. But you are now hedged against rising rents. In fact, buying a first home to rent out while you rent yourself is actually a method of getting into the property market that not many people consider.





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  # 2095284 24-Sep-2018 01:26
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Another option, buy property on Rakino Island. Commute to the CBD via ferry. And enjoy the off grid lifestyle.

You will literally be off grid there. As no grid power on the island. There are phone lines, but suspect that it is CMAR, therefore voice only. So only internet access is mobile or wireless options.







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  # 2095299 24-Sep-2018 08:06
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Second option is completely unsuitable for me and my situation (how would my boys get to school?), but I do like the ideas in your first post - start small and build up. That is something I would give some serious consideration to.


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  # 2095590 24-Sep-2018 15:21
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Aredwood: Another option, buy property on Rakino Island. Commute to the CBD via ferry. And enjoy the off grid lifestyle.

You will literally be off grid there. As no grid power on the island. There are phone lines, but suspect that it is CMAR, therefore voice only. So only internet access is mobile or wireless options.


I've been trying to sell everyone on this idea for years now. Unfortunately, the ferry services aren't frequent enough to work and live on Rakino. All that's needed is a connecting ferry to Waiheke though, not necessarily a direct service. With the rapid growth of Auckland, it's only a matter of time before these services are viable and Rakino property values shift closer to Waiheke values.




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  # 2095734 24-Sep-2018 19:22
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  # 2108364 15-Oct-2018 17:37
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I've been told that non residents are not allowed from from entering into contracts from 22 Oct onwards.

 

So the foreign house buyer ban has not taken effect.

 

Whether there is an effect remains to be seen, as Australians and Singaporeans are allowed to buy due to existing free trade agreements with those countries.





Involuntary autocorrect in operation on mobile device. Apologies in advance.




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  # 2161792 15-Jan-2019 22:14
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Thread bump as I had another thought tonight (reading John's home purchase thread) about buying a house. If I am in a body corporate managed apartment, and say I have a place on the top floor, what are the chances of them letting me install a solar panel (most likely on the roof) to provide electricity to my apartment - as well as using power from the grid? Might be good for saving on the power bill, but would a body corporate just allow you to install solar panels on the roof of the property? I haven't seen many (if any) apartments with this.


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  # 2161819 16-Jan-2019 05:40
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give how the building power would be arranged it would be difficult to sort our

 

and yea good luck getting a body corporate to agree to that


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