Re property rising by 8% a year. Using our modest 2 bdrm villa in Henderson as an example, the cv in 2004 was 235,000. In 2007 just after we bought it was 315,000, altho I had to do it up a lot and had the cv raised to 325k which is about an 8% rise per yr from 04.
But an 8% rise to this year will mean our property will be valued about 435,000????? I don't see any similar houses selling for anywhere near that. At best we may hold our value from 07 but that would mean (I think) that it's the first period in Auckland's history without a reasonable percentage rise in values, bearing in mind that Waitakere has had a 4 yr wait since last valuation.