But that sounds like just like the sharemarket :)
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With real estate, all your purchases are for sizeable sums as you cannot accumulate small parcels in the same way you can with shares. Comparative transparency of pricing is an advantage about buying publicly listed shares over property, especially houses sold "by negotiation" or "auction". Buying a house through an auction is a nightmare, when you have to put in so much "due diligence" prior to making a bid, which is all wasted when you are out-bid on the day.
However, with property, if you have deep pockets and are prepared to pay "top dollar", you will get the property. By definition, all bids under the winning bid are "at below market price". Just like if I put an offer with my broker to buy Share "A" for $1.00, when the market price turns out to be $1.05. The difference being that I would be able to see (more easily) the change of market price for the share, provided I had an account with access to immediate pricing and provided I was glued to my computer....
And, of course, shares in (say) Fletcher Building are traded daily, whereas the houses you want to buy are traded infrequently.
Which makes price discovery for Fletcher Building quite easy. And which makes price discovery for 56 Grantham Road quite difficult.
Especially when coupled with the need to physically inspect the property.
And, of course, shares in (say) Fletcher Building are traded daily, whereas the houses you want to buy are traded infrequently.
Which makes price discovery for Fletcher Building quite easy. And which makes price discovery for 56 Grantham Road quite difficult.
Especially when coupled with the need to physically inspect the property.
I have real doubts that it could be done today,especially in Auckland --which makes the original question hard to answer--The fairness of it all is another debate (Ive just been a lucky bystander in many ways)--to me the whole capital gains thing would most likely work better if they determined the value of props when the law came into affect and work from there--trying to go retrospective would just be to hard and most likely wouldnt work--so at the moment Ive got big gains on paper--not a very big cash flow--high rates-and tenants--and then perhaps a tax to come--9Ive been pretty much buy and hold---those that flick are a different animale.
Im also perfectly aware that this (what I believe)crash thats coming to the share market may well spill over to the housing market and reset values(but not rates)
I still cant figure out why they dont use the existing tracks to Huntley and Hamilton for a decent commuter train into Auckland(thus opening up lots more affordable properties in those areas for those working in auckland.
There was a commuter train Hamilton - Auckland that was shut down 5? years ago due to lack of patronage.It may be better patronized now & be time to bring it back.
https://www.facebook.com/HamiltonCommuterTrain
The distance from Hamilton to Auckland, would be commuting distance for many people going into London. If Auckland does not get its act together to meet demand, a fast motorway and train service to Hamilton (and not forgetting potential development of Mercer and Huntly en route) may be a solution.
Just recieved the annual report for year ending 30/06/015 and the return before taxation is 9.30%.
A return of 8.29% if you are using 28% PIR.