Owner-occupiers more likely to move house than renovate this year, CoreLogic says

I have commitments keeping me here until September, mostly work related, which is when we'll be leaving.

I saw your posts and you seem to be a person with a balanced view, but this comment change my view. 

Who are you to ask someone when they will leave, at least maintain some decency. 

Jacinda has spent 2 years keeping people out of the country, she will have the team working on how to keep people in this country.

One word from your paragraph summarizes the main issue:  Jacinda

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Our neighbour has just left for Denmark (job in science). Three young families we know are leaving in the next few months: to Asia, Europe and Australia. House prices, although important, are only one reason. The world is going back to normal and people are moving on with their lives. They are all renting. The relative difficulty of buying a house resulting in a looser connection with the community is what makes going away a lot easier. Having said that, there will probably be many new families drawn by immigration ads, who will take their place. 

I'm leaving too, my wife is French, we are moving to Lyon. (I've lived in Wellington most of my life)

True. I'd always recommend doing your research and do what is right for you. You've got to take some risks in life though, and it's a risk worth taking when you're young.

For me personally, as I'm not Kiwi by birth (British) and all my family/network are back in England, its probably a greater risk staying put for us.

The people who are leaving from the sounds of it aren't the asset owners though. So at most the impact would be on the rental market yield, but doubtful to be on the house prices themselves. 

.....and all you'll be left with "taking the proverbial" are retirees, immigrants, beneficiaries and real estate agents .....how terribly exciting ! :) 

Never going to happen.

For every kiwi the government drives out they have another ten from less developed countries lined up to work for remittance.

Along with high interest rates coming, NZD tumbling, just so many reasons for this housing market to crash.

cool story, bro

Really !! ....can you give me the details CWBW !! ......I am foaming at the mouth with this 4.5% gross return ....BE QUICK !! 

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Disclaimer: owned and rented out 2 properties at 15% and 12% gross return  ....great cash flow and when sold 85% & 80% capital gains ....so keep pushing your barrow mate, as it's like fishing isn't it  - maybe you'll get that "sucker" that buys or maybe you won't......while I would NOT wanting to be spruiking NZ residential property right now. 

a) who TF would want to buy a rental now, given the market and the new rules.

b) who would want to pay over half a million dollars for something in Otorohanga.

c) 4.5% is gross. After expenses and tax the Otorohanga resort roi is pretty mehhhh.

d) Otorohanga. Enough said.

You're straight up delusional coming on here and shilling Otorohanga rentals, but so are many others, so yes it probably will sell soon.

4.5% gross yield doesn't leave you much after insurance, rates, vacancy and 1-2% for expected maintenance. Probably going backwards if you have a decent sized mortgage. 

Plenty of shares on the NZX with similar or higher gross yield, no holding costs and no phone calls because the roof is leaking. 

Christ,

Even Otorohonga is more expensive than Brisbane.

I suppose there are pros and cons if you have a very special fondness for cows.

CWBW,

One day you might, just might, post something worthwhile. But probably not. Who gives a toss about the gross yield? Come back with the net yield-  after rates and insurance- and then from your great knowledge, an estimate of other costs- maintenance and periods between rentals.

So, a net yield of below 3% seems reasonable-in Otorohanga? Are you taking the p....?

Yes credibility comes from experience.  I wouldn't dare give cooking or gardening advice, I know I'm not good at either and I have very little experience in these fields.

If I wanted to learn how to cook better, I would ask an experienced chef

If I wanted to become better in the garden, I would ask a person with lots of experience in gardening.

Do you not agree it's better to listen to someone with experience ?

I don't think i need to explain anymore. 

Or could it be that you don't want to answer the question?

What you say might be true in some cheaper parts of the country, but it's certainly not true in Auckland. Not remotely.

Ex state homes even on half sections are usually north of $1.3 million.

I have seen pretty average 2 bedroom brick and tile units in pretty average locations going for 800-900k in the last few months. You can't seriously think that this is a better option than a new 2 bedroom townhouse at a similar price point.

Further as I note above a big hurdle is deposits. Some FHBs can get approved on 5-10% deposits on new builds, 20% is the minimum on existing houses.

You sound like someone who is very, very out of touch with the realities of FHBs buying homes in 2022,  like a few others here....you may be experienced but it doesn't sound particularly relevant to many FHBs in 2022...

Your advice would push up new home prices further as that is all people would want to buy.

As long as it's older than the 1990s, yes. Probably good advice for young Kiwis to stay clear of 1990s Hardileak houses (which the banks may not want to lend to them for anyway).

Thanks but I didn't want to explain this to yvil since he is experienced and an expert. 

Guess the most experienced in get rich by adding zero value to community.

Some think they achieved something in their life by that. That's what I pity. 

I agree. We’ve been through old houses (e.g. old English style villa and 1950s ex-state house) and every time we tried renovating something, it was like opening a can of worms. Strip off the old kitchen to get a new kitchen in - you find the walls & floor aren’t flat due to the old age of the house. Scared to death that the asbestos reports will come back positive. You find someone else’s botched DIY reno that you have to undo etc etc. It’s just not worth it unless you like doing renovations and have the skills. We got ourselves a brand-new house and we are much happier now as we can spend our weekends doing fun things with kids rather than doing endless renos on top of working full-time.

govts has supported the asset owning class at all cost, that is what got us here.