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17-04-2016, 04:15 PM
#3481
Originally Posted by Roger
You'd probably know better than I on that front but where there is a will there is a way. Few years back we tried to help our eldest daughter into her first home, a very modest do-up 1960's two bedroom unit with 1960's décor in a very modest suburb and it was only $280,000. Would have required a lot of work and a real roll you sleeves up attitude to add value but it would have been a start and we were prepared to write the deposit cheque. They turned their nose up at it as not being good enough and today they continue to regularly bleat about the rent they have to pay and my wife who's a real softie keeps "lending" them money when they get in trouble. I don't ask how much if any she ever gets back. Two main points to this story.
1. People have to have the right attitude if they want to get started. Be prepared to go without all sorts of wants and desires for many years to save your deposit, just like everyone else did when they got started.
2. You don't buy an average Auckland house in an average Auckland suburb as your first home and neither should you have an expectation that you would.
3. Be prepared to put some work into your home.
Millennial generation way of thinking. Very common. I blame the parents
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17-04-2016, 05:46 PM
#3482
Originally Posted by Roger
You'd probably know better than I on that front but where there is a will there is a way. Few years back we tried to help our eldest daughter into her first home, a very modest do-up 1960's two bedroom unit with 1960's decor in a very modest suburb and it was only $280,000. Would have required a lot of work and a real roll you sleeves up attitude to add value but it would have been a start and we were prepared to write the deposit cheque. They turned their nose up at it as not being good enough and today they continue to regularly bleat about the rent they have to pay, (at a better place of course), and my wife who's a real softie keeps "lending" them money when they get in trouble. I don't ask how much, if any, she ever gets back. Three main points to this story.
1. People have to have the right attitude if they want to get started. Be prepared to go without all sorts of wants and desires for many years to save your deposit, (just like everyone else did when they got started). Gen Y and X seems to be the "now" generations, they want it right now, it doesn't work that way with houses.
2. You don't buy an average Auckland house in an average Auckland suburb as your first home and neither should you have an expectation that you would. Modest units, apartments and very modest houses in modest suburbs are still out there and that's how most people got started, something young people need to keep in mind.
3. Be prepared to put some work into your home. Has the term "sweat equity" been forgotten ?
Suppose I should sheet all this back to SUM SUMhow to keep it on topic. I noticed the other day that units at their new waterfront location in Hobsonville start from mid $400's. If people don't have mid $400's in equity by the time they're 70 what have they been doing with their lives ? Nobody can tell me SUM's more straightforward units aren't affordable even in Auckland ! Lifestyle doesn't look to bad either.
http://www.summerset.co.nz/hobsonvil...village/video/
SUM is a property owner...so property market and condition is related I guess. Those Hobsonville units sound good value!
Tough Love Dad, softie Mum
Re 1.Agree however with the size of deposits today no doubt requiring even more years of saving than the situation facing buyers in 1991, even more sacrifices (even for a modest starter in Aux these days) are required and perhaps that is over-awing for many. Also more people undertake higher education and are older when they try to get onto the first rung & are saddled with student debt too.
Re 2. Agree, because of the state of the market and increased competition from investors, first home hunters may need to set their sights lower than their parents generation did. Did first home owners in the 80's and 90's have to check their starter house for "P" residue? I have heard of some who do not do due diligence for fear of missing out. Were auctions as common back in the day?
Re 3 It still exists! But I guess for some, if you need to work all hours to cover your mortgage and to pay back parents for help towards the deposit, you could be too exhausted to do much else. Don't affordable blocks of flats have tiny garden areas and body corporate maintenance plans?
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17-04-2016, 06:16 PM
#3483
Anyone know what SUM does for share splits? What may cause this to happen?
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17-04-2016, 08:01 PM
#3484
Originally Posted by Bjauck
SUM is a property owner...so property market and condition is related I guess. Those Hobsonville units sound good value!
Tough Love Dad, softie Mum
Re 1.Agree however with the size of deposits today no doubt requiring even more years of saving than the situation facing buyers in 1991, even more sacrifices (even for a modest starter in Aux these days) are required and perhaps that is over-awing for many. Also more people undertake higher education and are older when they try to get onto the first rung & are saddled with student debt too.
Re 2. Agree, because of the state of the market and increased competition from investors, first home hunters may need to set their sights lower than their parents generation did. Did first home owners in the 80's and 90's have to check their starter house for "P" residue? I have heard of some who do not do due diligence for fear of missing out. Were auctions as common back in the day?
Re 3 It still exists! But I guess for some, if you need to work all hours to cover your mortgage and to pay back parents for help towards the deposit, you could be too exhausted to do much else. Don't affordable blocks of flats have tiny garden areas and body corporate maintenance plans?
Yeah those Hobsonville units do sound good value so I set myself a little challenge to see if they're a complete anomaly and to see if there is other affordable housing options in a modest suburb for a young person / couple starting out, circa $450K. It took me less than 2 minutes to find this which looks like a pretty good starter to me. Wooden floors and a nice bathroom would even suit a busy young professional couple. http://www.trademe.co.nz/property/re...1048021402.htm
Too expensive ? Why don't people start with an apartment for circa $325K http://www.trademe.co.nz/property/re...1034932348.htm
Share split extremely unlikely for SUM at this stage IMO. More likely 3-4 years when they head over $10.00.
Last edited by Beagle; 17-04-2016 at 08:31 PM.
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17-04-2016, 08:30 PM
#3485
Gee Roger, Sum at over $10 in 3-4 years, that will make Ryman shares worth over $20 in the same time frame (Off course they will be back to $2 by then after a share split) so will be real cheap buying compared to Sum aye) PS-Your new bullishness is outstripping all shadows of your former heights. PPS- Winner and yourself weren't Amway salesmen in years gone by were U's.
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17-04-2016, 08:34 PM
#3486
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17-04-2016, 08:39 PM
#3487
Originally Posted by Roger
Is that a 5:1 share split mate (Sorry mate couldn't help myself).
All good mate but I must confess I'm going to get real scared when Winner, yourself or both of you start getting bullish on HBL again.
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17-04-2016, 08:52 PM
#3488
Last edited by Beagle; 17-04-2016 at 08:58 PM.
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17-04-2016, 09:27 PM
#3489
roger:
Got to invest in things that will achieve the end result one is looking for SUM one of them and RYM another. Ten years invested in a company growing at 15% per annum gives four times your money
.......plus a bit for the oysters and chips for lunch down on the beach
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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17-04-2016, 09:43 PM
#3490
Man, in a few years you could save money for parts and build your own. Now there's a hobie and something to work towards
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