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Gryffyn
06-11-2004, 05:39 PM
Anyone have, or can me point to, figures that show median proprty prices etc but split into their two main components: land and improvements. Last 10 years would be sufficient.

People, media etc often talk about the housing boom but it would be nice to break down the last 10 years to see if thw growth is even.

TIA.

duncan macgregor
07-11-2004, 07:21 AM
GRYFFYN, the best place to go for your information is the real estate institute of nz. Or Go to any mreinz office and ask the principle to look it up for you and give you a copy of the charts [suggest you offer a donation to whatever charity they support. MACDUNK

Gryffyn
07-11-2004, 09:47 AM
Cheers MacDunk - will do.

Insider
07-11-2004, 04:26 PM
This is the area you want.
Check the market trends graphs. Not very specific, but give you an idea.
http://www.reinz.org.nz/reinz/public/market-information/market-information_home.cfm

07-11-2004, 06:34 PM
THE KING says People who ask these Questions need Education.. [^][^]

Gryffyn
07-11-2004, 07:16 PM
Good link - thanks insider.

Gryffyn
07-11-2004, 07:18 PM
and ah listen - the court fool's bells are jangling with the consternation of being unable to answer two simple questions on the WHS thread.

07-11-2004, 07:20 PM
THE KING says would you like to repeat THEM.. [^][^][^]

Gryffyn
07-11-2004, 07:20 PM
And thanks again responders. I the question raiser did indeed need education and thus used this open (and deteriorating) forum to gain such.

Gryffyn - open minded and not afraid to admit I don't know everything.

Capitalist
07-11-2004, 07:26 PM
This site is the Karoake Theatre of the Absurd Gryff. The politics of website forums is similar to that of a dysfunctional family. That’s just the way it is.

Gryffyn
07-11-2004, 07:33 PM
Maybe, but call me old fashioned but I hail from the days when the net grew out of things like The Well and the lack of netiquette, and flaming that goes on now here, most of it sans humour, reeks of childish bullying. Sorry, but your mate c9 might think it's great fun to trash anyone else threads for their own amusement but just stand back and see it for what it is.

07-11-2004, 07:34 PM
THE KING says at 2271 posts you have permission to LEAVE.. [^][^][^]

Gryffyn
07-11-2004, 07:38 PM
I know, they should change the ranking system:

1 - 50 = newbie,
51 - 500 = contributor
501 - 1500 = serious ramper / dumper
1501 - 2500 = blowhard pontificator
2501 - = really should get a life

;)

07-11-2004, 07:40 PM
THE KING says at this Rate your still at the the top of the LIST.. [^][^][^]

rmbbrave
07-11-2004, 08:26 PM
Hi Gryffyn,

Why do you have two entries in the members list?

Is it a mistake or have you posted 2276 x 2 = 4552 times?

Gryffyn
08-11-2004, 05:46 AM
Don't know rmb. You'd have to ask the site admin etc. Glitch in the mysql database underpinning things here perhaps. Doesn't seem to have any impact on me though.

limegreen
08-11-2004, 07:24 AM
Back to your main question re land & improvements; land value tends to be stable for a given part of town. So in a good part of town, the GV would be 5x higher per square metre than in a not so valuable part of town. The improvements value is then total - land value. Thus, "improvements" is only related to the size/value of your dwelling if it would be reflected in it's resale value. Thus, you can get some really weird anomalies where a really large house can have very little value with respect to GVs. Median house prices are not split up into Land/Improvements, but you can see how much of a premium/discount houses are typically selling to average GV.

Gryffyn
08-11-2004, 07:28 AM
Cheers lg, I'm looking at buying some more property in the next year or so and am trying guage if recent gains and any forthcoming dips are more proportionate to the underlying land values or the improvements.

Leaning towards buying unimproved land at this stage with a few to building when the heat is out of the housing market.

limegreen
08-11-2004, 08:01 AM
I can only really comment on Dunedin, but the new GVs released here generally conform quite closely with current house prices. I also attempted to calculate a monthly OBV based on the real-estate institute figures, and while it looks like the market is cooling a bit here, it looks more like a plateau than a reversal -- the median house price has been trading sideways for since May, after around 12 months of consecutive increases.


quote: Leaning towards buying unimproved land at this stage
The other option is to look for a property where the value of the improvements is relatively low, tenant it for a few years, and then push it over (possibly taking advantage of depreciation if it's an investment property).

Gryffyn
08-11-2004, 08:35 AM
Cheers again lg. Have been a slumlord in the past and no longer wish to direct any energies that way. Just trying to get a feel if relative to recent gains land itself has kept pace or whether the improvements have gained more.

duncan macgregor
19-11-2004, 06:54 PM
LIMEGREEN, FACTS . I bought a small block of land 40 min north of auckland exactly 11 yrs ago almost to the date. Paid $75000 cash for it and todays new valuation comes in land value $275000 plus improvements. My next door neighbour bought his for $68000 and leases it to the farmer in exchange for him paying the rates at the same time. MACDUNK

skinny
19-11-2004, 10:57 PM
Pretty good MACDUNK, ex property rates I calculate the return to be 12.5% p.a. compounding and you don't have any capital gains tax to worry about either. I have to ask though, given what you know about investing in share markets today would you do it again?
I mean I think I saw you saying you tend to around 20% p.a. in the sharemarket? If so why not sell the land now and invest where you get a better return?

duncan macgregor
20-11-2004, 07:22 AM
SKINNY, I cant do that skinny i built a house on my few acres. The interesting thing is the land value went up more than the improvement value on the house which is another interesting aspect.
macdunk

foodee
21-12-2004, 08:12 PM
Macdunk
Tone of your post and not wanting to sell suggests you might be seen as a 'developer' in the eyes of IRD, in which case they got you by the short and curly and it is virtually impossible to declassify yourself. The tax implication would limit or make property investments less attractive in that case.
Hope I am wrong.
Merry Christmas

cheers

pearljam
22-12-2004, 01:53 PM
Foodee,

Why would Macdunk be classified as a developer in this instance. From what I know a one off instance would not place him under this classification.

And if he is he can set up seperate trusts to differentiate between developing and normal rental property investment

foodee
22-12-2004, 02:52 PM
Pearljam
He is a self-declared retired builder thus the above observation.
You're right different entities can be set up for different purposes but it does get more complicated.

cheers

duncan macgregor
23-12-2004, 02:58 PM
PEARLJAM, Nothing complicated about setting up a trust, buying a block of land, stick a house on it and registering it gst. I also registered the property as a lemon orchard, and pine forest. The gst money paid me back for all the plantings, and allows me to claim back gst on all expences, rates machines etc. The crunch comes at sell time after macdunk kicks the bucket, but meantimes rules get made to be exploited. The more rules they make the better i like it. MACDUNK