Perhaps I should just give up on the first home dream
By the time I have the funds its all over
http://www.nzherald.co.nz/property/n...ectid=11728241
http://www.nzherald.co.nz/monetary-p...ectid=11723911
:t_down:
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Perhaps I should just give up on the first home dream
By the time I have the funds its all over
http://www.nzherald.co.nz/property/n...ectid=11728241
http://www.nzherald.co.nz/monetary-p...ectid=11723911
:t_down:
Given the Economic Climate and the fact that rates have slid so much I'm thinking this is the new norm
http://www.bloomberg.com/news/articl...tment-mismatch
Which means the crash that we are all expecting (Those without property) wont come and investors will keep reissuing capital for more and more properties
I was chatting to someone who works in housing policy, they were saying that they believe prices may keep going up for a few more years in NZ.
Only if the banks lend the money are from what I've heard the banks here are getting much tougher on leverage to income ...think at best we will have low growth for the next couple of years thanks to lower lending rates ...worst case GFC2 ...I'm sure we will see many home owners / investment properties owners finding it much harder to re-finance loans ....
3-4 years ago I had a mid sized loan with ASB during that time I also had another smaller loan in the Sharemarket ...now at the time I had taken a good hit on the share portfolio(and my personal income was down 10% etc)
Now I was looking to re-finance with ASB at the better rate + cash etc ...but to my surprise they didn't want to give me the new loan pretty much bye bye go elsewhere .... which I did ...now the property I owned was only 50% LVR so I was shocked ... but at the time without really pushing it (prob paying a higher rate etc) I had to go elsewhere...
Now how many with much higher LVR will be in the same place come re-finance time ... could well see 2nd tier lending at much higher rates fill the unwanted higher risk market .....
Hi JB ,
could do , currently second tier lenders have been swamped ......
Seems everyone currently wants to become a property investor .Anyone looking at moving desperately trying to hold onto current home and buy another .
Depending upon the lender this has become a lot more difficult if you take the 40 % deposit for investment property and 20 % for the new .Note they can do 10 % of their lending below the 20 % but can pick and choose . ( There are a lot of variables around this between lenders)
So currently things are a lot tighter , especially if you don't have 20 % deposit .
Also due to the responsible lending code , the serviceability criteria has tightened up a lot .
This is before the potential income to debt criteria that may come in ..........
I've said it before, but about 40% of people who's name is on a deed of title, have their name on more than 1 title. Source: Land Information NZ's database. I work in an industry with access to the figures
When housing is the main investment in this country it is not hard to see why... Given the massive returns in the last few years you would be hard pressed to find a better investment.
The problem is that you now have a generation forced to borrow for higher education and facing the fallout of the GFC which has meant that high paying jobs and wage increases each year are no longer a thing.
I'm 29 and have seen only 3 wage increases in the last 7 years.. I work long hours and have clocked over 40 hours overtime this month alone!
But because of my Student loan the government takes a considerable percentage of my overtime and regular pay that never arrives in my bank account...
On top of that If I try to take a weeks pay in the hand then again a considerable percentage of that is immediately taken for my Student loan.
Easy to dismiss this with the "I remember the mortgage on my first house ..." .. How about start with 40K in debt and a housing market that forces you to pay $550,000 for your first house
Now start on 40K a year and have no support from your parents who also rent and struggling to make ends meet..
On top of that now throw in the huge threat of Interest rate hikes on a $550,000 mortgage you paid for a house falling apart.
This is what screwed means for the current generation (I'm not asking for a handout just a chance in my own country to own a home) .
"Oh but it has always been hard" whatever, go back 4 years and your see places in Auckland for 350 K.
No one cares about our generation and it will come back to bite them when we find our voice.... :t_down:
I Agree ...at 38 I've been lucky enough to have been able to buy property much cheaper when I was in my early 20's as I never got a Uni loan as I left school at 17 and started full time employment ....IMHO gave me a great headstart on mates that spent many years at Uni to come away with huge debts (my wife still has a small amount to go).... still I don't have the Qualifications so moving away from my hard labour job as I get older isn't going be as easy to get a good paying white collar job >>>
You can really see the divide going to spread from the richer families to the average-lower incomes struggling ...as large inheritances pass downwards to smaller families(than the past) .... I know of many very wealthy families with just one kid ....!!!
I see from the NZ Herald that NZ residential property value has hit One trillion dollars, whilst the NZ share market capitalisation is at $116 billion. I don't know how this compares to the countries with which we like to compare ourselves (Aus, UK Canada USA) but I suspect their sharemarkets are valued at a higher proportion of their residential housing. NZ residential housing is the go-to investment and in my opinion, the NZ government could do more to encourage financial and business share and equity investments. With the current trends, NZers will end up being a land of mostly tenants being employed by foreign owned businesses and living in houses owned by wealthy local and foreign landowners.
See http://www.nzherald.co.nz/business/n...ectid=11781028