Have a good hard look at commercial/industrial. It's tough to buy at present, but a dream to own and operate compared to residential.
I like shares as well belgarion !!! but I tell you property has been very easy for me and I dont really have a huge amount of experience with shares to date but am well pleased with my current placing in the 2011 NZX comp
Im thinking late 19th centry new zealand folk art returns owns most other investment classes lately
Poor old behemoth BHP was at $6 in 1988 and is $45 today.
However it was very hard to gear BHP up in 1988 without the help of mortgaging your other property - your home in most cases
THAT is where the benefits of property help the investor -the mortgage liability does not go up with the gain.
BUT you can do the same with shares today
That is the type of logic I put forward in today's market.
No one expects property to appreciate much in the next few years. Other investments when luck or expertise comes into the equation can increase 10 fold in a quite short period.
I can't see NZ property going up much unless we have some major wage inflation(not likely or easy lending also unlikey)..but at the same time I don't think we'll see NZ property prices go down much at with low rates an increasing build costs...keeping a floor under the movement....so IMHO 2010-20 decade will be a zombie decade for NZ property of little movement
Property prices are now due for another price escalation due to the increased cost of about to be introduced earthquake standards on new buildings. The upgrading of older buildings to higher standards will also increase the end price. Engineers are about to have a field day, with councils passing the blame parcel on to them. New blocks of sections will have to have engineers drill reports so whoopee guys who ends up paying?. The younger generation on the flights out so lets turn the place in to a great retirement home for rich overseas migrants. Macdunk
Just got our new valuation for Henderson, down 5%, yet a similar house up the road sold last week for 330k unconditional 10% above new value and 5% above 2007. House I painted in Glen Eden has held its cv at 355k but sold recently for 385k, again about 10% over. Values were judged up to July so maybe last 3 months has seen a lot of buyer demand and willing to pay over the cv. I think well located and maintained houses with some features such as a view are selling but the rubbish isn't - unlike during the boom.
George go into Realestate Web Sites & see the number of properties that are being advertised below QV in the Henderson area
Hi Possum, most of the ones I looked at on trademe were for sale at 10% over the latest cv, and recent sales at over cv as well.
One not far from here is for sale at 260k, cv 290k, but it has rough tenants with a rotten bathroom floor etc. My read on things at this point is that a well maintained house in a good area etc. is holding or exceeding its cv. Won't know for sure till we sell which could be in 3 yrs or so. Would this be the first 3-4 yr period in Auckland's history when values have decreased - I see Rodney is worse off?
PS. A friend in Mt Albert his cv went from 360k to 390k yet he's in a poor area, ghetto music next door, his house is a mess, so there doesn't seem to be any rhyme or reason - perhaps his proximity to Maioro motorway entry is a factor.