Of course it's not a good time to buy.
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Disagree whole heartedly fungus the best time to buy was yesterday.
yes when you look back and when the thread was first started 2008 and Crude was calling first home buyers screwed ...Quote:
Originally Posted by Bjauck
the NZ House price to income multiple was around 5. .... US research believes 3 and below is an good healthy affordable property market
At present we are around - 9 !!!... this is a BUBBLE of epic proportions .. being held up by FOMO + record low rates + HIGH rents + Media & RE Agents pumping the narrative +ongoing higher costs reg to build
Every month we have another major business failing...paper mills , NZ refinery .. we are gutting whats left of our secondary industries .. from a toxic business environment of higher energy running costs + reg costs ..... and to think Cindy was talking up downstream business growth ,,,
We have a Comrade Govt that doesn't have a clue around Business + running a country outside pandering to slogans ticking up billions to keep the lights on
, an opposition thats weak ...throw in Covid lockdowns and Tourism $$$ our Govts have relied on for many years to keep NZ looking rosy
Interest rates at 7-8% and multiple at 5 or Interest rates at 2% and multiple at 9, what's the difference? Low interest rates are here to stay. I doubt we will see 4% over next decade. It's been around 2% in Europe for almost 10 years now.
From today's flipboard
https://www.stuff.co.nz/business/mon...-from-november
Yes, dead right and many Nations GOVT -Central banks know this but you can only laden so much debt on the consumer before he can't consume anywhere as much>>> even at record low rates we already see Central banks must buy the same debt thats created as no one wants it the Monetary system is broken and being patched over but every increasing loans here in NZ to buy every increasing debt notes BONDs ...
If I lent my capital I would want a good return.... if it returned nothing then what value does that capital have ?? you better off spending it all and ticking up to the eyeballs and use all these cheap capital >>>> which is what we are doing at record levels
Yes but sadly many New and old investors think Property can only continue to rise ,,,
if the lowest lending rates went back to 7% and stayed there for next decade I can promise you NZ home prices would not double .. well not unless we have massive inflation in wage growth....now if rates went Negative and we got paid interest for having debt then yes we could keep the Bubble growth in play
I've seen many articles like this. It doesn't change my view. It's my opinion obviously based on the current situation. Common sense says there will not be significant raise in rates for years, because people woudn't be able to keep their home. No bank or government wants this. That's why I said I think the rates won't go up over 4%.
I can of course be completely wrong, I have no economic education and only go by my self study and observations.
It's been a sick journey for sure...I lost myself over the years but had a pretty good life... I still don't have a house! but In my attempt to skip the 30 loan term of a house I've faired up not too badly and having an unreal year.... I now have slightly more than a whole house freehold....
Pity though ... a few months back I had my investments past 1 million dollars... but here I am with a portfolio been slashed quite abit but still around 500k... I'm going all out here so pray for me that I can get that house freehold early next year and still be rolled 🙏 for life plus investments....
1 time for a freak pup 🐶 !!! Lol....
You probably mean unencumbered or mortgage free rather than freehold. Nearly all NZ houses are freehold, which refers to land tenure and simply means not leasehold. It's a common misnomer - but those who profess some financial prowess should know the difference.
I don't have a problem whatsoever for using the term... everyone understands what I mean even you...!
What is the meaning of freehold property?
: Freehold property can be defined as any estate which is "free from hold" of any entity besides the owner. Hence, the owner of such an estate enjoys free ownership for perpetuity and can use the land for any purposes however in accordance with the local regulations
That is plainly wrong. Almost all residential property in NZ is freehold, and over 60% of those freehold properties are mortgaged to a lender, which does not change their f/h status. The titles will describe them as leasehold or fee simple, (which is freehold). I just though with all your blah and blab promoting yourself as some sort of financial whizz-kid I'd be doing you a favour with a little basic education.