New Zealand real estate prices

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Forums › Finance and wealth management › New Zealand real estate prices

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#3405904 20-Aug-2025 18:31

cddt: I would imagine that someone with a $5m+ house isn't anywhere near close to being underwater.

In house financing, being "underwater" means the homeowner owes more on their mortgage than the home is currently worth.

High-end properties often experience sharper price swings because their value is more speculative, not just supply and demand.

The more it costs, the fewer people can afford it. Also expensive properties take longer to sell in downturns, increasing the risk of being stuck with an underwater asset.

Some admittedly stupid luxury buyers finance large portions of their homes, assuming continued appreciation.

For houses that are heavily over-designed, it may make it hard to sell. While it's may be a dream for someone to have a luxury kitchens in Italian pink marble, extensive landscaping, water features, gym and theatre, it may make the house harder to sell.

I know I saw this property that was a converted hospital. It had a giant plot, with unbelievable amounts of landscaping, and lots of outbuildings. They must have had someone who worked 40 hours/week maintaining the garden. I can imagine they were having a lot of trouble selling it.

kingdragonfly

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#3406533 22-Aug-2025 18:07

My opinion is Reefton is the best bang-for-the-buck. Unusually strong schools give its location. Taumarunui is the weakest, both in schools and unemployment.

Five towns where you can snag a property bargain - no matter what the Official Cash Rate is: Stuff

Westport, Buller, West Coast
Pātea, South Taranaki
Taumarunui (Central North Island)
Reefton, Buller, West Coast
Mataura, Gore, Southland

sir1963

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#3406585 22-Aug-2025 19:06

The other problem with Taumarunui is the cost of electricity.

Only one supplier with huge daily charges and high price power. People have pulled out their electric stoves etc and have had LPG ones put in to save money (and even then the pay for the rent on the bottle).

johno1234

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#3406627 22-Aug-2025 20:59

Several of those towns are dumps but I have a soft spot for Southland.

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#3406684 22-Aug-2025 21:26

johno1234:

Several of those towns are dumps but I have a soft spot for Southland.

There’s a reason why they are cheap. It really doesn’t matter how cheap they are if you can’t get a decent job.

mudguard

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#3406714 23-Aug-2025 07:08

kingdragonfly: My opinion is Reefton is the best bang-for-the-buck. Unusually strong schools give its location. Taumarunui is the weakest, both in schools and unemployment.

Five towns where you can snag a property bargain - no matter what the Official Cash Rate is: Stuff

Westport, Buller, West Coast
Pātea, South Taranaki

Taumarunui (Central North Island)
Reefton, Buller, West Coast
Mataura, Gore, Southland

Funnily enough I'd go to and through all of these towns for work. The articles like this drive me nuts. There was one recently talking about Wairoa (between Gisborne and Napier on the East Coast). It's surrounded by a river that floods, known for a strong gang presence. I wouldn't live there in a million years.

All of these articles seem to rely on someone living in Auckland, selling their house and living in these towns with no mortgage where presumably you don't need much income. The reasons these towns have cheap house prices is there are no jobs. I'd drive through Inangahua and I swear there were a pair of houses on the market for at least five years.

Westport needs half the town relocated. I agree, Reefton is lovely, there's been a resurgence, but I don't think in jobs. One of my favourite coffee shops in the country is there too!

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#3406822 23-Aug-2025 17:00

mudguard:

All of these articles seem to rely on someone living in Auckland, selling their house and living in these towns with no mortgage where presumably you don't need much income.

these are often pitched to the retirees or almost retirees. a lot of people being made redundant at the moment that are struggling to find work, especially with ageism.

so its sell the expensive house and go buy in some cheap town and live off the sale proceeds and benefit/super.

it also helps push those small town prices up generating profit for the existing owners.

kingdragonfly

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#3406826 23-Aug-2025 17:14

Off subject, but there may be reverse ageism for some.

Ageism isn’t just about aging. Young people say they feel it, too.: Washington Post

tweake

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#3406837 23-Aug-2025 17:57

kingdragonfly: Off subject, but there may be reverse ageism for some.

Ageism isn’t just about aging. Young people say they feel it, too.: Washington Post

certainly the young are hit hard in down turns. especially when companies are only interested in hiring skilled and experienced workers.

mudguard

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#3406867 23-Aug-2025 21:00

tweake:

it also helps push those small town prices up generating profit for the existing owners.

I'm not sure it's always profit.

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#3406883 23-Aug-2025 21:21

mudguard:

tweake:

it also helps push those small town prices up generating profit for the existing owners.

I'm not sure it's always profit.

In places like that it’s almost never for profit. If you were trying to make money there are far easier places to do so.

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tweake

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#3407017 24-Aug-2025 13:34

mudguard:

tweake:

it also helps push those small town prices up generating profit for the existing owners.

I'm not sure it's always profit.

its almost always. i doubt that many bought the houses originally at higher prices. maybe those who bought at the peak, but there would be very few of them selling unless forced to.

mudguard

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#3407032 24-Aug-2025 14:39

tweake:

its almost always. i doubt that many bought the houses originally at higher prices. maybe those who bought at the peak, but there would be very few of them selling unless forced to.

tweake:

its almost always.

But there are costs to ownership. It's not like buying an item for $1 and then selling it for $10 down the line. Looking at Westport in particular, if one bought a home twenty five years ago you'd be looking at:

Purchase Price $71,750. Deposit of 20% $14,350. Total interest and principle over the term $132,300. (25 years at 8%) So that house has cost $146,650. The median in 2025 is $327,000. So you sell for that and your "profit" is $180,350. But you still need somewhere to live.

The comparison would be to take that original deposit and leave it in a bank account at 5%. That turns into $48,594. The key is to then factor in twenty five years worth of rent and the difference between it and the mortgage repayment, IE to save the difference. Looks like median rent in 2000 was about $112, now it's $393.

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#3407033 24-Aug-2025 14:40

mudguard:

But there are costs to ownership. It's not like buying an item for $1 and then selling it for $10 down the line. Looking at Westport in particular, if one bought a home twenty five years ago you'd be looking at:

Purchase Price $71,750. Deposit of 20% $14,350. Total interest and principle over the term $132,300. (25 years at 8%) So that house has cost $146,650. The median in 2025 is $327,000. So you sell for that and your "profit" is $180,350. But you still need somewhere to live.

The comparison would be to take that original deposit and leave it in a bank account at 5%. That turns into $48,594. The key is to then factor in twenty five years worth of rent and the difference between it and the mortgage repayment, IE to save the difference. Looks like median rent in 2000 was about $112, now it's $393.

Don't apply facts. That would be a scam.

mudguard

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#3407034 24-Aug-2025 14:47

Handle9:

Don't apply facts. That would be a scam.

And to be clear, I'm not trying to diminish what is an increasingly more difficult goal, but I'd say 99% of people who buy houses, buy them to live in, not to flip.

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