Geekzone: technology news, blogs, forums
Guest
Welcome Guest.
You haven't logged in yet. If you don't have an account you can register now.


View this topic in a long page with up to 500 replies per page Create new topic
1 | ... | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 
1795 posts

Uber Geek
+1 received by user: 449

Lifetime subscriber

  Reply # 2095142 23-Sep-2018 14:55
Send private message quote this post

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.




4084 posts

Uber Geek
+1 received by user: 876


  Reply # 2095145 23-Sep-2018 15:00
Send private message quote this post

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.


 
 
 
 


14442 posts

Uber Geek
+1 received by user: 1893


  Reply # 2095151 23-Sep-2018 16:08
Send private message quote this post

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..


14442 posts

Uber Geek
+1 received by user: 1893


  Reply # 2095152 23-Sep-2018 16:18
Send private message quote this post

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!




4084 posts

Uber Geek
+1 received by user: 876


  Reply # 2095270 23-Sep-2018 22:24
Send private message quote this post

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.


Mad Scientist
19309 posts

Uber Geek
+1 received by user: 2522

Trusted
Lifetime subscriber

  Reply # 2095273 23-Sep-2018 22:30
Send private message quote this post

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!





Swype on iOS is detrimental to accurate typing. Apologies in advance.


14442 posts

Uber Geek
+1 received by user: 1893


  Reply # 2095279 23-Sep-2018 23:59
Send private message quote this post

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.


3249 posts

Uber Geek
+1 received by user: 1263

Subscriber

  Reply # 2095283 24-Sep-2018 01:05
One person supports this post
Send private message quote this post

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.





3249 posts

Uber Geek
+1 received by user: 1263

Subscriber

  Reply # 2095284 24-Sep-2018 01:26
One person supports this post
Send private message quote this post

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.







4084 posts

Uber Geek
+1 received by user: 876


  Reply # 2095299 24-Sep-2018 08:06
Send private message quote this post

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.


592 posts

Ultimate Geek
+1 received by user: 177


  Reply # 2095590 24-Sep-2018 15:21
Send private message quote this post

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.




4084 posts

Uber Geek
+1 received by user: 876


  Reply # 2095734 24-Sep-2018 19:22
Send private message quote this post
Mad Scientist
19309 posts

Uber Geek
+1 received by user: 2522

Trusted
Lifetime subscriber

  Reply # 2108364 15-Oct-2018 17:37
Send private message quote this post

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.





Swype on iOS is detrimental to accurate typing. Apologies in advance.


1 | ... | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 
View this topic in a long page with up to 500 replies per page Create new topic



Twitter »

Follow us to receive Twitter updates when new discussions are posted in our forums:



Follow us to receive Twitter updates when news items and blogs are posted in our frontpage:



Follow us to receive Twitter updates when tech item prices are listed in our price comparison site:



Geekzone Live »

Try automatic live updates from Geekzone directly in your browser, without refreshing the page, with Geekzone Live now.



Are you subscribed to our RSS feed? You can download the latest headlines and summaries from our stories directly to your computer or smartphone by using a feed reader.

Alternatively, you can receive a daily email with Geekzone updates.