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Originally Posted by NeverQuestion
Talking with one of the Guys at work around the housing situation in Auckland.
He was saying that he is moving because the landlord is trying to sell up.
So he decided to go to the action and see how much it went for.
According to him the place didn't sell and alot of the other places didn't either.
Talking with one of the officials at the Auction room apparently sales are down 80%.
Ever since the new LVR was applied to investors a few weeks back
Here is some evidence to back this one..but more like 50% It seems (people have a habit of exaggerating the truth a bit )
tbh there is a lot of anger and resentment among my fellow Millennials on this topic, so watch this space i guess...
http://www.nzherald.co.nz/property/n...ectid=11727694
Last edited by NeverQuestion; 12-10-2016 at 07:56 PM.
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NZ property market is still in full swing as its a simple case of Supply verses demand and until this changes it will remain strong unless the government rstrict the immigrant numbers or make it so hard to buy a house ( cant see the latter happening, as it defies logic)
We need to build at a faster rate output to curb demand - simple i would have thought
\"if women didn,t exist , all the money in the world would mean nothing\" Aristotle Anasis.
\"The trend is your friend\"
\"A mans reach should always extend beyond his grasp" J.F Kennedy
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U r def right, went to an auction yesterday in mount Eden, ghost house, sold for 1.55million. There were a lot of bidders, he not slowed down. Still has at least a year to go or whatever.
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Reserve bank this morning "House price inflation remains excessive, posing concerns for financial stability. There are indications that recent macro-prudential measures and tighter credit conditions in recent weeks are having a moderating influence."
Fundamentals don't mean anything when the credit taps are turned off.
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Originally Posted by Mush
Reserve bank this morning "House price inflation remains excessive, posing concerns for financial stability. There are indications that recent macro-prudential measures and tighter credit conditions in recent weeks are having a moderating influence."
Fundamentals don't mean anything when the credit taps are turned off.
"Fundamentals" meaning what, in this context?
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Originally Posted by macduffy
"Fundamentals" meaning what, in this context?
The underlying supply/demand in-balance in the market.
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This time is not different. By 2019/20 we could see the next trend and real picture.
Last edited by Valuegrowth; 24-09-2016 at 05:09 PM.
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Thing is, without the ability to borrow, people need more money to push up prices. Otherwise, sellers could push up prices if are disinclined to sell.
Since the LVR has increased, it's possible for prices to continue to rise (even with less sales occurring) if sellers don't believe there's going to be a drop.
Of course, there's speculation (described above) and market factors. I doubt that there are going to be any market factors causing a drop in house prices, as these would need to be things like recessions or a reduction in immigration.
To summarise the above, I think the only way that prices would drop is if the media caused fear of a drop (possibly by publishing results of a lack of sales). However, the thing to remember is that demand is still there due to immigration and lack of choice in terms of investments in NZ AND every time the LVR has been increased these past few years, sales have taken about a 3 month pause, then started up again. Obviously the higher the LVR goes, the less leverage bonus investors get, which is worth noting.
Personally, I'm expecting a pause, possibly with a bit of a drop, OR a pause then continue to increase.
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... Well, it looks like the property market has had it's pause and is starting up again
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Originally Posted by Lewylewylewy
... Well, it looks like the property market has had it's pause and is starting up again
.....what's the news?
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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