NZ 1st homebuyers are ScReWeD...

[foodee]

JK
Ahhhhh Opotiki - next area to take off.
Beach front development hasn't flown - for a lot of reasons.
Great beaches
Great microclimate - esp tableland
Strategic junctional/gateway area

As Whakatane/Ohope prices increases Opotiki will look attractive.

Opps off topic.

Cheers

[JoeKing]

Foodee, you are ontoit!
I am not in the property (investment) game any more, but have been suggesting to investors who ask, look at Opotiki it will be next! I think there are still some beach front sections for sale at Waiotahi for around $100k,
Friends bought a block of 5 strata title units there 2 years ago $150k. latest valuation $440k. Fully let, the sale of 2 now would freehold the other 3, and who says the property business is dead?!
I think it was Zig Ziglar who said "the deal of a lifetime happens every day" you just gotta learn to recognise them. I always try to imagine 3 years in advance.
Cheers and good investing
JK

[Crypto Crude]

as you say JK,"and be ready to take advantage of the next property cycle in 3 years"...
....well then I got the best part of 2 and a half years to get onto it then...2 more years of share growth, save a couple of hundred a week in dough... 50% deposit.... 10 year loan...
big difference [8D]....
I am not stubborn enough to turn down an opportunity, like a sideways market for 2 years.
a sideways market for that period would be enough for me to get large deposit and be in..

as per my first post example.... if im buying a house at 300k, 8% interest... and total amount paid to the bank at the end of 30 years is 799k.... 300k off the value of the house, $499,000 is the extra money that goes to the bank in interest charges.... 499k is almost twice the value of the house....
(im looking at 50% deposit in 2 years which makes 499k look way excessive)......and 2 flatmates paying 100 a week for 10 years... because I want a family and need the whole house after that... 100*2*52*10=104,000
so therefore net 700k payed after flatmates revenue stream... if my house is valued at 1mill in 30 years then im only 300k up in real terms...
summary- so you buy at 300k,costs of net 700k, 1mill house value in 30yrs ,In this example most property investors would say that they are 700k up, ... really they are 300k up... a big difference....eg, when it comes to story telling the buying and selling prices lead, .... and not the actual profit figure adjusted for debt payments... i have been told many a stories none which take into account the massive interest rates during peak inflation, (24% jk)... XZY said" i bought it for, sold it for, but miss out the important bit inbetween..

one million house value in 30 years, question mark....
what will houses in Auzzie be, 2 mill plus?...
will banks be doing loans for 2 times one life long loan?... (2 generations, 160 year loans)

a falling market or sideways market, is just the risk im going to have to take... the no risk way is the 25-30 year loan approach... the risky way is the 10year loan approach...
[8D]
.^sc

[JoeKing]

Shrewdy, no offence mate but you sound just like my friend, still saving to buy his first house
STOP! and listen! >OPM<!
Without going into a lot of number crunching if you intend saving your deposit then paying off your house with AFTER TAX $$'s you are still thinking like 95% of people who spend their whole lives working for... or "slaves" of money.
At 43 I lost a farm, and was adjudged bankrupt. Thats about as low as one could possibly get! I decided working HARD was not the way to success. Unable to get a job in town I became an Encyclopaedia salesman, (considered the lowliest of jobs at the time) and learned how to work hard and SMART! Had my first million within 7 years! I am merely pointing out that I know what its like to be at the bottom with just a black hole to look into, and the difference a change of attitude can make...

Cheers and good luck
JK
PS it will take a very long time to get started if you are banking on $NZO ... been there too )

[foodee]

JK
Likewise I am out of property and hold some shares as a 'hobby'.

I learnt that money is not good for anything except spending - I know a lot of posters won't agree.

Cheers and happy living.

[Crypto Crude]

JK,
"I may sound like your friend", you say.... trust me mate, im nothing like him...
I have a good outlook on life (not that he didnt)...I do think like a 5 percenter.. I'm gonna get 5 years experience with wages, and then become a business owner...
the house fits in somewhere... just cant be sure when...
Housing equals short term heartache, long term reward...
Im after short term reward, long term mack daddy... []
If housing rises 10% this year, with 300k house... equals 30,000... think I'll get more than 30k off the shares...although I have to lay all the dosh out on my volatile stocks...
(but of course I dont have to pay the 24k on interest charges this year),
I call them interest bunnies
all I say is dont judge me because i'm going against the grain...
judge me next year on current portfolio picks... including percentage of total portfolio...
currently holding AED 42%, NZOOD 24%, URA 22%, UOGO 12%,

[8D]
.^sc

[Crypto Crude]

now my balls are dangling on the line... should make things interesting...
[8D]
.^sc

[Bel]

People are smiling like happy sheep after the effect of 9 years of booming property prices on there investment properties....

Funny really when you consider that there mortgages are likely to be for 30 years and in that time a lot of bad things can happen to property that is negatively geared.

e.g.
-Mass migration
-The air car is invented. Now you can live anywhere and commute easily to work.
-Capital gains tax on property is introduced.
-Interest rates again reach 18%
-[insert unforseen future events]

[Mr_Market]

Good point Bel. All of the profits that people have enjoyed over the last few years from the sale of properties has created ZERO wealth for this country. For every dollar of profit taken there are several dollars of debt to be paid by those holding the mortgages.

The profit dollars have created the illusion of a strong economy. They are mostly spent in NZ providing record employment. Thus the good times can only be sustained by further profits being taken from property.

Interest rates are probably going to be increasing this year. How high can people bid the price of property and still pay their mortgages? We are in for a sharp shock when we hit the ceiling. There will be no more property dollars to prop up the economy. Small businesses will go under. Jobs will go. Mortgagee sales will increase. Those with positive equity will trade down to release sorely needed cash.

The inevitable can only be postponed (by increasing immigration). But the fact remains that we are not creating wealth in this country.

[JoeKing]

A quick note to Broke
" How can $20k be "not one penny"
This is what I said: " ...Four years ago I set out with a goal to use $20,000 equity" EQUITY! That means I put up NOT ONE PENNY!
Before trying to pick holes perhaps you shold learn to read more carefully, maybe then you won't be "broke" while I have been to the beach and checking the construction of our new million $ apartment )
Cheers
JK