NZ 1st homebuyers are ScReWeD...

[fungus pudding]

Whether it is a good time to buy a flat with only a 20% deposit when interests are at their lowest point for years and after so much price growth, remains to be seen.

Is NZ a low wage, low productivity economy where housing is a commodity for investors?
https://www.stuff.co.nz/national/pol...is-a-commodity

Of course it's not a good time to buy.

[Topagent]

Disagree whole heartedly fungus the best time to buy was yesterday.

[fungus pudding]

Disagree whole heartedly fungus the best time to buy was yesterday.

The best time to buy was when interest rates were above 20%.
The money might be dear - but the asset will be cheap.
That's the time to buy with the added bonus that every dollar of mortgage reduction gives you an excellent tax free return.

[Bjauck]

Disagree whole heartedly fungus the best time to buy was yesterday.

When FOMO in a rapidly escalating market becomes your overriding consideration, that is when you start making rash decisions. It is then time to step away from the agents .

[fungus pudding]

When FOMO in a rapidly escalating market becomes your overriding consideration, that is when you start making rash decisions. It is then time to step away from the agents .

The final sprint to the top of the cliff always gets a bit crowded.

[JBmurc]

When FOMO in a rapidly escalating market becomes your overriding consideration, that is when you start making rash decisions. It is then time to step away from the agents .

yes when you look back and when the thread was first started 2008 and Crude was calling first home buyers screwed ...

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

[peetter]

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.

[fungus pudding]

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

[JBmurc]

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.

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

[unhuman]

Doubles in price every 10 years? ie about 7% per year

Thats a new one Duncan. It used to be 10% a year - ie doubles in price every 7 years.

Do you still reckon propert has doubled every 10 years from 1066 to 2006 and will do so from 2006 to 2056?

Year average house price
2006....400k
2016....800k
2026....1.6 m
2036....3.2 m
2046....6.4m
2056....12.8m

A house is considered expensive if it is 7 times the average wage.

What are the chances of the average wage being $229,000 (1.6m/7 = 229k) in 2026?

Pretty slim I'd say.

If house prices keep doubling every 10 years no one will be able to afford to buy them.

Quite an interesting comment to look back on - made on the first page of this thread in 2007.