NZ 1st homebuyers are ScReWeD...

[Crypto Crude]

Moke and Macdunk...you guys are wrong.

I see it the other way. simple...I thought you would have thought about it.

Increased deposits is the same as 'tightening credit.' There will be less 'supply' of people buying and therefore further downward pressure.

On the flipside, you dont 'need' that 20% deposit. My brother just bought a house with 10% deposit and could have been as low as 5%. You just have to have a low equity fee ($4000 or something which was only 1% of the average house price and now they have fallen average 8% so still saving 7%)..or you have to have a slightly higher interest rate.

Look at the facts before posting.

Many home buyers are now putting off because of future expectations of housing drops.

Macdunk, you say house prices cant fall much further because of construction costs. Well...construction costs are coming down and sections are also coming down. Paying $200 k for a section is just ridiculous! Plenty of downside left....

My pick is prices wont 'crash', but the RB will make them stay stagnant for a long time till they are inline with long term averages. A crash would jeopardize our financial system...and it will be avoided as we have had foresight with whats gone on in the states and rapidly falling house prices.

Increased deposits will also become part of the norm for borrowing...and so it should. I almost expect it to be put into regulation.

UD glad we finally agree on something. Maybe PPP also?

.^sc

[STRAT]

hey minimoke...
boy... I dont really know where to begin...
I dont want to bore all you cats to tears...

trust me buddy, last year the outlook was so bad, that all these signals (interest rates et all) would have to fall into my court, and then some, just to halt a crashing market...
The truth is, housing has fallen so much that I could buy a house for 150k when this is over...
also, im expecting my shares to perform... and I will get a job, and add money... ive got no problems mini...
all will happen, it will only happen on my terms... I will call the shots and make that entry when ever I see fit, so as to get myself the best deal, and I still have a good Solid year (realistically 2 years plus), but time to readdress the situation next year...
goal---> houses...
but yah never know... If I get the right business opportunity, then I might scrap housing all together...
luck to yah

.^sc

Gudday Shrewdy.
I have been in Maccas team on this one but the math is lookin better and better as time passes for you. I think assuming you werent/arent intending to buy a rental you have probably made the right decision as long as you can beg steal or borrow a deposit.
One thing stands out in your post though. Regarding your share portfolio performing and house prices continuing to plummet. Its unlikely you will get both. More likely one or the other.

[minimoke]

Its an ownership flat in Linwood, damn ugly at that

You won’t find anything in Fendalton for $189k

[Serpie]

You won’t find anything in Fendalton for $189k

Not so Minimoke

http://yahooxtra.realestate.co.nz/90...x_price=200000

What? It's in Fendalton!

[STRAT]

Not so Minimoke

http://yahooxtra.realestate.co.nz/90...x_price=200000

What? It's in Fendalton!

So many agents are idiots. The add below says make make an offer for $500.00

About the property

Pick up this character home with good bones before it gets demolished. Does need some TLC. Vendor needs a clear section. House only for Removal.

[minimoke]

Not so Minimoke

http://yahooxtra.realestate.co.nz/90...x_price=200000

What? It's in Fendalton!

Well done Serpi. There’s SC’s deposit gone now and it looks like ideal student accommodation. Just need to find him a nice plot of land and a BIG truck to shift the home of his dreams!!

[Serpie]

Or just leave it on the truck and save on the land?

[minimoke]

Moke and Macdunk...you guys are wrong.

....
Look at the facts before posting.

Macdunk, you say house prices cant fall much further because of construction costs. Well...construction costs are coming down ...
.^sc

Actually they are not. The cost of building a small home in Canterbury is $1755 a SQM as at July 08, up from $1,736 in January. Construction costs have consistently risen in every period for the past 10 years, even back in ‘99 when inflation was as close to Zero as we’ve been in recent history. Construction costs have not come down once in that period – and here we are with the CPI at 5.1% in Q3 of "08 ( the highest since Q3 in 1990) and we are expected to believe construction costs are coming down. I can't see any evidence of that.

[Dr_Who]

Question for macdunk
Which would you rather do? - pay a 10% deposit on a $400,000 home a couple of months ago or pay a 20% deposit on the same home which will be selling for $300,000 this time next yr

mini moke - if I could buy a modern 3 bd home for $190,000, where I live, I would jump at it

Hey Mick, you have a house to sell? I may buy it at the right price. LOL

With rates at these levels and continue to go down you may not buy it back cheaper next year or so.

[Serpie]

we are expected to believe construction costs are coming down. I can't see any evidence of that.

True MM, but those figures are historic, and there is plenty of anecdotal evidence around in the buliding industry at present (at least in Canterbury) that suggests that the real problems are starting to kick in.
It's a very different landscape out there at the moment than it was even in July 08. Look at all of the home building companies offering discounts and incentives at the moment.