Residential auction activity remains buoyant, with the number of properties being offered at auction, the numbers being sold and the prices being achieved, all at much higher levels than this time last year.
Over the two weeks from 13-26 July, interest.co.nz monitored 429 residential property auctions.
That compares with just 250 in the equivalent two week period (15-28 July) of last year.
Not only are more properties being offered at auction, more of them are selling, with sales achieved on 250 of the 429 properties at the auctions monitored by interest.co.nz.
That gave an overall sales rate of 58%, more than double the 24% sales rate recorded in the equivalent period of last year.
Prices also look firm.
Where interest.co.nz was able to match selling prices with a property's rating valuation, 80% of selling prices were above their corresponding rating valuation at the latest auctions.
Those numbers suggest the market remains firm, particularly for the middle of winter.
However prices of Auckland inner city apartments have been taking a hammering, particularly for the smaller apartments often referred to as shoeboxes, which tend to be popular with foreign students and migrant workers.
At the latest Ray White City Apartments auction, 11 properties were offered and five were sold under the hammer.
The problem wasn't a lack of buyers, they were out in force and all of the properties received bids.
However buyers were very cautious on price because of the uncertainties the COVID pandemic has created around foreign students and future migration patterns.
Sales included the following:
- A 34 square metre studio in the Amora building on Greys Ave. It had a rating valuation of $390,000 and received multiple bids but sold for $320,000.
- A 40 square metre, two bedroom unit in the Volt building on the corner of Queen St and Mayoral Drive. This building has long been a favourite with investors and the unit had a rating valuation of $420,000. According to QV.co.nz it was was last sold for $378,000 in 2018, but at the latest auction it sold for $340,500.
- A 53 square metre, two bedroom apartment in the Nova en Scotia building overlooking Myers Park. It had a rating valuation of $480,000 and last sold for $470,000 in 2016 but sold at the latest auction for $421,500.
- A 41 square metre, one bedroom apartment in the Century on Anzac building on Anzac Ave. It had a rating valuation of $250,000 but the building has significant remediation issues and the unit sold for $100,000. It had been purchased for $225,000 in 2006.
- The only apartment to sell for more than its rating valuation at the auction was a two bedroom unit with a car park in a low rise block at the CBD end of Mt Eden Road. The unit was comparatively large at 79 square metres and had a 15 square metre balcony, which appealed to owner-occupiers. It was last sold for $655,000 in 2017 and had a rating valuation of $650,000, but sold under the hammer after competitive bidding for $720,000.
Details of all the properties at the auctions monitored by interest.co.nz are available on our Residential Auction Results page.
The comment stream on this story is now closed.
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124 Comments
Aaah here we go again. 1st August report just in time for the weekend viewings to create even more buyer urgency
https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12…
Yeah... even OneRoof can't get it up today. A very flaccid outlook.
To those who showed courage and confidence in the market holding up and believed that the desperate doom predictions were overblown, I raise my hat.
Trademe data over the last month has the number of Auckland properties available to buy DOWN and the number of Auckland properties available to rent DOWN. So I think that the pressure is building up.
Even the degenerate OneRoof property spruikers admit it's going down for the rest of the year.
But by all means dont let us stop you going all in.
Everyone has a different opinion and that makes a market. Your obvious one eye on a slant and standing on your head view isnt the same as mine. Enjoy.
You failed to include this
" Still, the fact Auckland prices are mostly flat rather than falling is remarkable in itself."
"However prices of Auckland inner city apartments have been taking a hammering"
Is anyone surprised?
Bargain season hasnt even started, wait till wage subsidy goes and the mortgage holidays eventually end
Is that the DGM version of ‘wait until your father gets home’?
With around 50billion of mortgage balances, 15% of total mortgage lending, on covid support, even with wage subsidies and small business loans... Will be interesting to see what dad brings home.
One of my siblings wasn’t sure of their job security so applied for a six month mortgage deferral. The only requirements were that their loan was in order at the time of applying, that they understood the risk of the deferral and that they had been OR EXPECTED to be impacted by COVID-19.
Their employer applied for the wage subsidy and got it. In the meantime they are being paid and are stashing the money freed from mortgage payments into a rainy day fund. They are going to apply for another deferral if offered, otherwise they will use their saved money, if necessary, to keep a roof over their head if their job goes.
I can understand why so many are wishing a pox on existing home owners. Put simply, they want to profit from someone else’s misfortune. The problem so far is that the pox hasn’t visited. To assume that a whole lot of the mortgage belt are going to default when the various support mechanisms come off now appears wrong or at best exaggerated. The RBNZ and Government couldn’t give a stuff about depositors. They are holding up the home owners at all costs, and it’s working.
“ Put simply, they want to profit from someone else’s misfortune.” As opposed to landlords et al, profiting from other folks misfortune... this could be your opportunity to stop your gloating and have a wee bit of empathy for people on the other side of the property divide. Sadly though, I suspect you’ll remain ever so entitled.
Just own a home for Me and my family. No gloating but neither am I feeling the need to cough up my home so someone else can have it. I emphasise with the struggles of those that want to be in my shoes and I have my own children to sort, but I tire of those that can’t accept what the market is apparently telling them. I thought the market would dip, but I was wrong. We only have so many years on this Earth. I’m surprised how long people are prepared to wait for the ‘right’ price.
So what you’re saying is, people who can’t afford to buy a home now, should just accept they never will and suck up their life of serfdom? But if they deign to wait and buy the house from your bankrupt brother, they are somehow awful dreadful people?
You regularly gloat on this site about how much your house price has gone up... you call people who don’t own a home and who hope for a more affordable market as “doom and gloomers...“ now might be a time to review your entitlement... maybe? Though I suspect you won’t...
I regularly update the CoreLogic estimate on my house, both up and down because it’s a reference and a counterpoint to the endless confirmation bias in the comments. This week it was $2.55 million. So what. I’m close to retirement. If I’ve made the right decisions in over 40 years since leaving home I should be comfortable. I’ve certainly done the hard yards in places most here wouldn’t visit let alone work. Railing against people like me won’t get you a house. Three years ago, Cindy said homes for all. Now, people who voted for her like Rick Strauss say at least she was better than the alternative. At some stage you have to work out how to do it yourself. A 28 year old work colleague bought their first home in Auckland last Month. It is possible.
I’m not railing against people like you... I am merely holding a mirror up to your sense of entitlement... your implication that others haven’t worked hard or done it as tough as you is simply nonsense.
Personally I don’t care how much your house is worth... it’s tacky to gloat, which is exactly what you do. I can assure you no matter how well you think you’ve prepared for all eventualities, all you have could all disappear in the blink of an eye... as for “Cindy”... just be thankful someone smarter than you is leading our country, or you could have found yourself gasping for air in an overcrowded ICU...
Buddy I think you can have one of my beers from my crate.
you made the right decision by being born around 1957
Nobody is crying out to have your family home "coughed up" for first home buyers. But we have a generation who won't relinquish ownership of entry level properties (that were essentially gifted to them through state funded initiatives) to the next generation because they're now "Investment Vehicles for retirement" instead of actually being prudent and saving for their retirement.
You mean people like Helen Clark with her seven plus investment properties?
Yes people like Helen Clark and plenty of people who would never vote Helen Clark. Not sure why you even brought her into the discussion unless you're trying to deflect the issue.
The hypocrisy of that woman is astonishing. While she was leader of the opposition she opposed a boarding house development in her white privilege mt eden. As an individual she used government letterhead to add weight to her private submission to Auckland Council to have it stopped. Then she goes around lecturing everyone else.
No surprise at all. I said months ago that the apartment market would crash.
This isnt half the picture. The stories of the buyers walking away from deposits and the mothballing of big developments isnt being covered.
Inner city apartments might be taking a negative price hit but that doesn't seem to be putting off the Chinese investors buying up existing suburban sections in AKL for cramming on more apartments and or extremely small townhouses. Looking at the auction results, I found it odd that a tired old looking residential 3 bed house in Pakurang could sell for double it RV value at $1,115,000 (July '17), sold for $2,261,000 6 Reeves Road, Pakuranga, until you look at what's next door to it: https://www.barfoot.co.nz/property/residential/manukau-city/pakuranga/h…
THAB zoning inflates values, especially for decent sized sections.
The same thing will happen all over again with the high density rezoning that is directed by the NPS-UD...
Twyford thinks it is the silver bullet for housing, but all it will do is inflate land values and result in overpriced shoe boxes...
Money out of Hong Kong possibly aye?
Even if they build 4 townhouse will cost approx 4 million so will be costing approx 1 million each town house so at what price are they expecting to sell. It is risky but must be someone with deeeeep pockets.
Another one 109 Hutchinson road with CV of 940000 sold for 1204000 - excellent price.
No sign of housing market slowing down.
Not when there's foreign buyers and money launders to feed it. If there's a will then there's a way and there's always an f'ing way.
Still it will be interesting to see if the new transparency regulations on Family Trusts will have a slow down effect on the market later next year (If National don't try to scupper it first).
Stay away from SBAs (ShoeBox Apartments).
They are toxic to live in. A friend of mine stayed in one for just 3 weeks and came away with what he called the "Bolthole Blues".
Unsurprisingly, SBAs can also become toxic investments, as today's story shows.
Why use your hard-earned to buy someone else's problem?
With real estate, it's always better to buy something with a decent amount of freehold land.
TTP
80sqm house on 1/5 acre is too small for us, let alone 30 - 40 square metres with no land!! Prison cells are 10 square metres.
Hi Nzdan,
Have you ever been in the circumstances where you've tried out a prison cell for size??
TTP
Not yet.
They'll never end...extend and pretend.
The cost will be a perpetually stagnant economy and a poorer future, but hey, that's for the next lot to deal with.
$10,000 a square meter to live in an Auckland CBD dogbox.
Where do I sign up!
Just look out for the born losers wearing a tie and a greed complex with their heads in the long white cloud
"the smaller apartments often referred to as shoeboxes" Dogbox also pretty apt. At one stage they were called Asian cupboards. BE was happy with 20m2. In the end I think Akl City Council put a minimum size limit of 40m2 for future CBD apartment size. In any event there'd probably be a person per 5m2 or thereabouts in them.
Woof, Woof - Who let the dogs out. I can see the apartments turning into homeless shelters for one person,obviously, despite the government saying we may allow chinese students to come into the country, sometime down the track. Perhaps students could come from Rarotonga.......
The crash is coming and everyone smart enough can see it. The only way to stop it is a wage subsidy and mortgage holiday forever.
This has been ballooning since 08 where they inflated rather than fixed the problems that caused the GFC. People with common sense have been calling the pop for years now and it hasn't come, underestimating the lengths the money leaver men will go to to save their own skins over the greater good. I suspect they can kick the can down the road for a bit longer yet. But whatever is coming is going to make the great depression look like a summer holiday. Get your house in order - even though not being part of the debt Ponzi is hard yakka right now.
Or at least until the election right? Gotta keep the party going till then surely.
From what I can see and what I hear from people in retail, the spending is hot. If people can spend so much in the shops I am sure they can cut back to pay the mortgage when needed. Time will tell, but I think the government have gone OTT pumping money into the economy. Its a big waiting game.
I too am of the same view but market suggest otherwise. House price is not only holding up but have seen that houses going much above the CV / vendors expectation.
Mortage holiday will be extended as well wage subsidy in some form or other.
If property prices were to fall across the market at 20% from today, any seller who bought their property more than a few years ago would still make a decent profit. If someone owns a home worth $800,000 today but ends up selling it for $640,000 next year, they'll be disappointed but they may have only bought it for $500,000. The issue in the short term is going to be new owners who now can't afford their mortgage. For people who have lost their job or business, when the mortgage freeze and wage subsidy disappear there is going to be some selling. There will be a price fall when this occurs, but it will bounce back eventually. Some people are already deciding to cash in, but there will be plenty of investors who don't do so until later on when the prices are heading south. There are going to be bargains around, but the most desirable locations will keep their value.
Agree. The variables are liquidity and the ability to service the debt. Confidence and the balls to hang tough. And interest rates and how much flesh the money men are comfortable gouging. The wild card is what happens if fiat collapses because no one knows although there are some examples from history https://www.goldmoney.com/research/goldmoney-insights/anatomy-of-a-fiat…
So sorry ,I hit the reported button ,my apologises , was trying to read more of your post.
Ezy - Your post scared the crap out of me, reading how quickly the collapse of public confidence in a debased fiat currency would happen (months - the author picks probably before end of 2020), and what hyperinflation looks like as it gets out of control.
Article finishes with a nice punch:
"Today, with all currencies set to collapse there are no substitutes for gold itself, the only exception being silver. A case could be made for bitcoin, and other restricted-issue distributed ledger cryptocurrencies, but is yet to be proven. The adventurous will borrow fiat to buy bullion today, in the expectation the fiat repayment will cost them nothing. And what better opportunity is the gift presented to present day inflation kings than the suppression of interest rates by central bankers."
Looks like lower interest rates & money printing is winning the tug-o-war over failing businesses & rising unemployment
I can't believe some of the comments on here, the article says:
- Almost double listed at auction
- more than double the sales rate
- 80% selling over RV.
Yet, somehow, several commenters conclude that the housing market is going down. That's an unreal level of bias, ignorance of facts and just mistaken belief that "what I think/wish is true".
The apartments are an easier measurement of where property investment is at right now. That's the focus.
Also given there's typically a 6 month lag on sentiment, and we've got a shed load of cashed up kiwi families coming back early from their well paid overseas tenure skewing the figures it's hard to see what's really going on in the non-appartment market.
Ezy
Re: "The apartments are an easier measurement of where property investment is at right now. That's the focus."
What do mean??????
- "Apartments are an easier measure of where the property market is at right now"?????
- "That's the focus"?????? - for who?????
Note that the result for houses (e.g. three bedroom) in this and recent auctions have been consistently seen a majority sell over 2017 RV as a benchmark - that is a measure of where the property market is at right now; i.e. currently holding up.
Read my comment slowly. We're in agreement. 3br + is going gang busters because of expats returning. That's a measure as long as that lasts which won't be long. Apartments is a better measure of future sentiment as it's more investor heavy.
How are all these *returning expats" getting finance so quickly?
Yes and what employment situations are they coming back too, wasn't that most people reason for leaving NZ to go to places like OZ?
Ezy
Read the article - even quickly if you like:
1. "Auckland inner city apartments have been taking a hammering, particularly for the smaller apartments often referred to as shoeboxes, which tend to be popular with foreign students and migrant workers"
Apartments are a relatively niche market of foreign students and migrant workers - both currently at zilch level.
2. "Those numbers suggest the market (i.e. for other properties) remains firm, particularly for the middle of winter."
Also ground rent is another factor that makes apartments less desirable.
There are 1m kiwis living overseas, so that's plenty of demand.
Except for them being overseas. Probablu consider themselves housing refugees.
I agree with you Yvil.
Clearly, as predicted, apartments are tanking, but overall the market is doing ok. At least for now.
Simple question Yvil, what do you think is going to happen after the 1.7 million kiwis currently on some form of wage subsidy ends in September and then the mortgage holiday ends ? There is already panic to extend it and we are only just in August.The entire property market is now being artificially held up, thats not even up for debate. If the government had not stepped in, free market forces would have corrected property prices and it would have been of epic proportions. The government is now trying to navigate a soft landing but the engines of our economy stopped months ago and the plane is severely overloaded with debt. Very happy to have grabbed one of the few remaining parachutes and bailed out a while ago.
Yeah that's the trillion dollar question that no one knows the answer to.
Assuming the government don't extend and pretend (which they might), one would think the market will weaken, but by how much?
Why would they stop, Robertson has already packed his war chest and they haven't faced any political or monetary constraint on their borrowing so far.
Carlos67
"Very happy to have grabbed one of the few remaining parachutes and bailed out a while ago."
What is your situation?
Does your comment indicate that you sold and got out of property including a home?
I think I recall you posting within the last few weeks that you were looking to buying (BOP?)
Well when the wage subsidy ends in September ends, two things will happen to employees:
These employees either:
A) keep their jobs, which is likely in the vast majority of businesses which are back to normal levels of revenue;
Or;
B) they lose their jobs and go onto the a Covid relief jobseeker benefit, which means they receive about the same amount as the wage subsidy for at least another 3 months.
So what happens in September when the wage subsidy ends? Pretty much nothing.
B) they find out their job is gone for good, and after months of trying to make ends meet on the wage subsidy they face reality and deleverage
Carlos,
Firstly the article doesn't talk about "what will happen in September" which is an unknown as it's in the future, it talks about auctions being very strong NOW and some conclude prices will go down
Secondly, what will happen in September is anyone's guess, yours is clearly a house price drop, that's your opinion, nothing more. To answer your question, I think if, and that's only an if, enough people lose their jobs and it becomes a problem, the government will step in and provide support in some form of additional income support. Hence house prices will STILL not go down, at which point you will say
"yes but the housing market is being artificially supported" No sh!t, Sherlock, it has been for long time and it will continue, wake up.
Carlos67 - I think you are out of touch with the strength of the Economy. Sure the wage subsidy will finish but the current business world is not all hanging on only because of the subsidies. There will be no crash as many predicted, 2021 will be a boom year for our economy. Most people realize this now and have abandoned waiting for a crash, hence the activity in the market particularly FHB. The lack of listings is the major issue right now. I reccomend subscribing to Tony Alexander Tview Premium for a very modest $110/annum for detailed data from his own surveys. You get information from up to date data and great insights. Make your own conclusions but I see anyone waiting for a crash is going to be disappointed.
Jesus, Tony saw you coming from a mile away didn’t he?! Lol
The strength of the market has surprised me but, on reflection, it's being driven by some pretty simple fundamentals.
1. Demand-side factors (low cost of funds, liberalisation of rules for FHB's, an increasing pool of homeseekers, and undiluted investor appetite) are all strong.
2. Supply side factors (low inventory levels, pace of new housing production) don't suggest oversupply any time soon.
The reverse is true for shoeboxes and shonky apartment complexes. As a general rule FHB's can't borrow against them, passive investors have become gun-shy about remediation costs and cashflow , and the target market has dried up - which makes the reported fall funadamentally logical.
The key for me is that larger and owner-occupier-focused intensive housing product is selling at a premium, not just standalone suburban housing - which doesn't suggest a market tumble any time soon?
Hi Yvil,
I know what you mean.......
The DGM are a tiresome bunch of bull-sh_ters.
TTP
Hello kettle, this is pot
I agree.
But you are as equally tiresome.
@TTP
The financial system that underpins your much loved housing inflation is "bull-sh_t". The central banks that anesthetised the bond vigilantes with QE will soon be faced with the truth of an army of global dollar vigilantes. One day you will wake up and know that the big numbers you celebrate were a mirage, valued in debt laden confetti.
JJ, don't confuse what is right or fair with what actually is. Waiting for the day of reckoning in the hope for social justice can be very, very costly, some here have been waiting for 30 years and have therefore missed out owning a house.
That's true, but it was 40 years ago that Paul Volcker as the Chairman of the Federal Reserve allowed interest rates to rise allowing successive chairman to lower interest rates through good and bad times to get to where we are today (over your referenced 30 years). The funds rate is near zero, low interest rates has never been enough they always have to go lower because we have past the inflection point of having an interest rate that gives balance. Given that they need to go lower to keep the game going, what would the world look like if we had negative 10% interest rates or negative 20%?. What are your thoughts, ... genuine question. If there is no balance, what is the end game?.
Who actually knows anyone who waited 30 years for a massive house price correction? Seriously? Who is the mythic DGM who has been stuck in a bear trap for 3 decades?
I realise Yvil, that you do not have access to the figures that I have access to.
But please consider that the dropping sales during lockdown is nowhere near being made up for, thus far, comparing each month to previous months in 2019.
For example, additional sales in Auckland in June compared to 2019, made up 34% of the deficit of prev months.
In July, the total sales in Auckland will have to be 39% higher (2776) than in 2019, to get back to the same trajectory.
This is highly improbable.
The extra being sold is also highly concentrated in Central Auckland (listings +23% on this time in 2019) and NSC (+1.5%)
Listings in all other districts of Auckland are lower than in 2019. This is houses and townhouses.
Prices are up in median terms because sales above $1.3m have increased the most.
Meanwhile sales below $850k (from 600-850) are off 40% on 2019.
Mike could you clarify a bit more on that statement "Prices are up in median terms because sales above $1.3m have increased the most.
Meanwhile sales below $850k (from 600-850) are off 40% on 2019."
Just home much more percentage wise has the sales of properties in the above; above $1.3m bracket increased? 5%+ 10%+? And are these for new builds only?
52-56% depending on bracket, in June
Compared to -7% for stuff under $850k
Why do DGM demand iron clad proof from others to support the information they have, yet make nonsense statements about the future without a shred of evidence?
I think many make their comments out of frustration of having missed out (which is understandable) rather than from any kind of knowledge or long time experience of property ownership.
Unfortunately anger gets in the way of progress, I was going to tell one commenter how to buy a house with no money down and then he/she got all angry and argumentative, so he missed out
Bummer for them missing out your knowledge and experience. The property we signed for means we have to put down 50 to 60 percent equity, most will be cash and the rest borrow off another that is low leverage. We are having g a change of career direction. How you getting on
My question was more rhetorical and better not to answer anyways as the humpty dumpties just climb in. Enjoy your weekend mr Y
Yep, Yvil, let the DGM reap what they sow.
And that's all they deserve anyway.
They're a greedy, lazy bunch - and sloppy, short-sighted thinkers to boot.
TTP
Name one society in the history of mankind that printed it's way to prosperity?. Look back as far as you want.
Perfect example of an echo chamber right there folks.
Yep, Yvil, let the DGM reap what they sow.
Meh. Going on to public forums and bandying around the label DGM in an attempt to get an emotional reaction is trolling at an infantile level. If it were intelligent or humorous, it might be fun. Otherwise it's boring and more likely a reflection of insecurity.
I suggest a moratorium on the labels DGM and spruiker, at least with regards to other commenters. Things are so up in the air right now that there it is a reasonable position to suspect prices will fall, but also a reasonable position to expect that they might not. Its interesting to read opinions about this either way; its not interesting to read self congratulatory name calling comments that don't really add anything.
Hi J.C.
Yvil comes here to share the benefit of his knowledge/wisdom/acumen with others.
Don't forget that Yvil's an astute and successful property owner/investor.
He's the very antithesis of the greedy, lazy and low-IQ DGM.
TTP
I see. So has all the attributes and behavior of a troll, but is not a troll. Got it.
I don't mind being labelled a 'DGM', but I'm not quite sure what it actually means. In the case of how it seems to be used here, it seems to be a label to describe anyone who doesn't buy into the infallibility of the NZ property bubble.
Pretty sure Yvil sold a million dollar position in the market a few months back - so if it happens to be the case that he’s telling people to buy while he is selling - well buyer beware and grab a handful of salt to wash down the property investor kool-aid.
That’s the first rule of property club isn’t it? “Do as I say, not as I do”
I O, Albert (and others). as long as you view the property investor as the bad guys, the untrustworthy enemy, you will not learn anything. Do you really think I can influence the $ billion R E market with my posts? I come here to honestly share my view and hope (perhaps foolishly) that someone can learn something. I remember when i was 20 something and got help (info, not $) from a successful friend and it would make me very happy if I can help someone else out in the same way.
DM me the advise you were given and have gleaned as useful please Yvil x
Hi GN, the advice was not a one line "do this". I was amazed by his response when I told him I was impressed by his success and I was wondering if he would be happy to tell me about it. He may have felt flattered and he was very passionate about RE. He asked me to come to his office the next day where he showed and explained me at length that YOU HAVE TO CREATE VALUE = offer something that the lessee wants. Note he made his money in commercial RE where value is very much driven by income (yield). He showed me multiple examples of different ways he added value, he opened my eyes that everything can be negotiated in RE and he put me in contact with great RE agents and valuers. He even said " when you find a deal come and show it to me and I'll tell you if it's any good" In my suspicious mind, I asked "why would you not keep the deal for yourself if it's good", he said " if there's a $ 1Mill profit or more in it, I'll take it off you (and he could) otherwise you can keep it. That was 25 years ago, I showed him 3 great "deals" he showed me in minutes why they were not that good. The 4th deal was great, I bought it with no money of my own and made $300k (25 years ago) in the first year. This can absolutely still be done today
What kind of thing was he showing you that made the 3 first deals "not good? $300k 25 years ago is a chunk for a first year!
I don't see property investors as the bad guys - but simply that they know so many things that just aren't so. Becoming successful by turning others into renters so you can be 'successful' doesn't work when you look at the system as a whole. If your paradigm is 'me and my future' not 'society and our future' (perhaps a more left wing vs right wing disposition), then that is fine - but you need to be aware of the long term social and economic implications of your personal 'success' and if you want to impart that on others, then you should also tell them about the long term impact of housing speculation and debt bubbles so they're aware of the impact of their behaviour and risks associated with it.
That's a stupid and nothing comment IO. Your mindset would mean nz would be worse off having investors and a devonport villa would not have been restored to become a nice home for others. You're always on that bandwagon of tenant vs LL. Balance is important
Peter Wolfkamp's own home reno: Before and after, updating Devonport 1906 cottage
Peter Wolfkamp's own home reno: Before and after, updating Devonport 1906 cottage
https://nzherald.co.nz/building-construction/news/article.cfm?c_id=24&o…
Premium article
Funny how things that are difficult to understand are labelled as 'stupid' and 'nothing'. Dis you Donald Trump?
Once 10% of people own the whole monopoly board and everyone else is stuck paying rent and not passing go, don't be surprised if they throw their toys and decide that monopoly when played with the real world real estate market just isn't a game worth playing. Its a one way street to misery and the 'losers' deciding they no longer want to play the game.
Thanks TTP, to clarify, I'm certainly not suggesting that I'm better than others, I'm simply saying that when it comes to property, I do have vast experience and yes, in that field I know more than most, just like others will know much more than me in the field they've been working in for many years
You've always sounded like a down to earth dude, I haven't always agreed with what you've said but you've always been consistent with your message. I hope everything is working out well for you since Covid.
That’s not the only thing he shares Timothy, you forgot modesty.
Today I learned that pocketing 900k of capital gains tax free is the antithesis of greedy.
.
It's quite hilarious though. You can guarantee almost all of the spruikers will be on a certain age, puffed up on their "abilities" of being "successful", when in fact they just happened to be in the right market, having been born at the right time. They mistake dumb luck for skill and then attempt to call younger generations all sorts of things to double down on their ego's. When in fact data bears out that young people aren't the profligate spenders they claim (which of course, using their narrative, stops them from attaining home ownership), they run away so as not to shatter their delusion.
When the market is dead flat or even falling slightly it's possible to buy a property and add-value to it. Then you can get a new higher valuation from a registered valuer or sell the property for much more than it cost and then buy an even better property. Aka climbing the property ladder. You should try it sometime and see if it's "dumb luck" or "being successful" through hard work and applying a range of skills to get there. Now would be a good time!
Houseworks, there is one really obvious aspect of that plan that clearly is down to luck - the timing. What happens if the market picks up again?
Of course renovating requires some skill. But selling for a higher price requires luck as well.
You're both right and these issues are not mutually exclusively.
You can buy below market value if you are savvy, disciplined and prepared to roll your sleeves up, regardless of the stage in the market.
Equally, you can also be lucky according to your age and the timing of buying a house in terms of the economy and whatever Central Banks are buggering around at.
One you can claim bragging rights for, the other you cannot.
Precisely GN :)
A friend of mine renovated, changed the layout of and quake strengthened a commercial building. This was when the market was tanking. He won plenty of compliments for it and got a story in the papers. From that I think he got a good windfall that he put into something else. A good part of the success was the talent of the people he contracted to help him as he is not that smart, it certainly wasnt dumb luck or good fortune. Controlling and managing the process takes a fair few skills and dedication
Houseworks, I'm not saying it is all just down to luck. But even the success of your friend is partly down to luck. A person could put in all that work an still not make a profit due to unpredictable factors beyond their control. (Not to mention that you either need to have a lot of money or convince someone to lend it to you to start with).
You cant borrow money against a quake prone building, banks wont touch them. I've known him since kids and he was as poor as me, I think he just got rich all by himself. Not getting handouts from a benevolent family/govt makes people more self-reliant.
Seriously why would you bother?
DGM? Take your pick (TYP). But obviously choose one with a 5-star rating (5SR):
https://www.abbreviations.com/DGM
Now, anyone for KFC ?
I notice the personalised non-factually oriented debate continuity from some contributors.
how will the market crash when reserve banks are printing money, lowest interest rates and even banks throwing a life line with mortgage holidays.
I am talking average house on its own section
https://www.stuff.co.nz/national/politics/122274576/grant-robertson-mor…
Supply and demand... Inner city aprtment demand gone.. prices falling. Next up is going to be the high end places, last to be hit will be the FHB/investor segment, as they'll keep piling in till its too late. But its not going to be a crash, just a moderate drop and a period of flatlining.
Supply excess; demand deficit.
Usual market factors ignored by you clearly.
Forget Shoe box apartments
I am talking average house on its own section.
can you show me the numbers
we have gained 50k in the last 6months and quiet possible over a 100k for the year. departures are they temporary work visas students etc heading home
Residential auction activity remains buoyant, with the number of properties being offered at auction, the numbers being sold and the prices being achieved, all at much higher levels than this time last year.
Media and data suggests : Housing price in NZ cannot and will never fall so everyone can put their last money borrowed as will never lose it and even in future if lose earning can always sale it at a premium as house price never falls in NZ.
Go for it.......
yes and no ...
WOW - Market is Hot.
CV $1115000 went for $2261000
https://www.oneroof.co.nz/estimate/6-reeves-road-pakuranga-1258260
Even for builder it is too good/high price. Predection of house price fall or house price jump from here on
If that's true, I have no idea what is going on in Auckland property. That seems very high.
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