NZ 1st homebuyers are ScReWeD...

[cliff]

I attended a few open homes this past weekend and found myself the only viewer at each home. I'm located in the Bay of plenty where it appears out of town investers are flooding the market as they attempt to off load properties generally in the $150-$300k range. From what i have been told, most recent sales have been well below the listing prices and agents more than happy to listen to any offers presented. Yes, investers are back in the market but are looking more than ever for properties which they can pick up 30-40% below market valuation. In my opinion we are still on a slippery slope...who knows when and where it will level out at, only time will tell.

[duncan macgregor]

WE are all caught up in a deep recession with prospects of a total money collapse. Unemployment, forced sales, share market bankruptses. The safest place to have your money is in practical once its all over material assets, that will hold its value in whatever money system eventuates. The money system is about to collapse in my view, holding money or shares is high risk. Holding paid up income producing property is the only winner that i see on the horizon. Macdunk

[Crypto Crude]

hey cliff,
welcome to the boards...

mackdunk two years ago buying a house would have been the best way to bankrupt a new entrant...
Lets assume you are right about your predictions in that post...
It still does not make sense to throw money at the mole hill, lose money just for the sake of a position in the housing market ....
Theres much better places to put your money....
for example Bonus bonds...
guaranteed mate...

dont flog money at houses just yet...
think with your brain, not with your heart...
and you are in love with housing...
Best advice ever...

.^sc

[minimoke]

Theres much better places to put your money....
for example Bonus bonds...
guaranteed mate...

ANZ customers have reported that they were told the investments were "as safe as the bank". Now I reckon you think they were talking about Bonus Bonds. Nope – that was ING they were talking about. There ain’t nothing that’s “guaranteed”!

[foodee]

....
for example Bonus bonds...
guaranteed mate...



.^sc

Shrewd C,
I don't believe BBonds are guaranteed.
In fact if there is a run on it, will the bank cope?

Cheers

[The Great Gold Guru]

I am feeling reasonably positive about the market. I live in Devonport in Auckland , since the turn of the year I would say that 75% of the properties on the market on 1st January have sold ... several fresh listings have sold within a week at prices that are hardly bargain basement. We have been renting since May last year but took the plunge a few weeks ago and offered a cheeky $1.33m for a wonderful villa in Stanley Point that was on the market for $1.595m on 1st January. The house was already under offer at $1.45m but that buyer was subject to sale. Vendor was bridging a purchase in Takapuna and was getting a little desperate so decided to accept our offer hoping that it would force the first buyer into going unconditional to get the house. They decided to not continue so we got the place. The next door neighbours is a slightly larger house but still not "done up" and sold for $1.875m at the peak in late 2006 ... they are going to be spewing when the convesation moves to the property market at our house-warming party !! We are rapped, we reckon the place would have easily sold for around $1.6m when we decided to rent for a year instead of buying ... a nice $270,000 saving and also we may well have locked into a nasty mortgage in the low 9's this time last year which would have been nasty .... much better to be into a mortgage with a 5 on the front of it !!!

He who dares, wins ... buy gold , buy youself a nice/nicer house !!

[Dr_Who]

Gold Guru, you are onto it mate.

I ve been looking and buying in the bays area. Orakei, Mission Bay, Kohi, St Heliers. I am still looking for bargains. One must have patience and look at the long term picture.

I think rates will come down more and the OCR can hit 2% this year. The global economy is totally stuffed. Cant see any signs of a recovery soon. Just have to hold on tight and ride out the hard times. The central banks around the world will start to print money and inflat our way out of this mess.

[George]

Well it looks as if we were a couple of years early buying our little house,
2 br up the road in Glendene with a cv of 390k on sale for 309k. We have a 2 br
for 312k in 2007 cv of 315k so wonder what value is now, although we have a better
location. House over the road (Newington rd Henderson) sold for 305k (very quickly)
with a cv of 360k, full site but big costs to subdivide so probably can't compare
to ours. Our quiet street seems to be in demand with very close access to main hub of
Henderson, so we will be able to sell easily if have to as long as price is realistic.
But we are in for 10 yrs at least and jobs secure so far, if values stay
down for a few years more, we may have the chance to buy another property with
ours as security.
Looks like the shrewd one's call was correct (to wait) but there must be a lot of
first home buyers who thought they had missed out and now will be chomping at the bit
with a bigger deposit and not wanting to miss out again which may put a floor under
the market. I hope the bottom is not too far away and that the 'experts' strategies
work because the alternative is a bit unsettling.
George

[The Great Gold Guru]

Anyone got any rentals in Papakura ??... been looking on the internet and some very smart houses ( 1960's ex-state bullet-proof and modernised ) on the market for the mid 200's. I reckon if you can rent that out for $325-$350/wk with a loan at 5.00-5.50% you will be cashflow positive with a 15-20% deposit ... and P&I over 25yrs. Don't know Papakura that well but with electrification of Auckland commuter rail over the next few years those places near a decent train service that are cheap will probably outperform.

Love to get some feedback ... maybe also look at Manurewa, Manukau City, Otara, Papatoetoe ...

Sharemarket down again today , anyone remember the last "up" day ?? ... makes rental property more attractive by the day !!

[POSSUM THE CAT]

TGGG You get good rental from a P house in this area