NZ 1st homebuyers are ScReWeD...

[George]

Article from Aus showing first home buyers leading the charge
http://www.businessspectator.com.au/bs.nsf/Article/Owner-occupied-house-finance-up-35-below-expectati-$pd20090311-Q22TD?OpenDocument

[The Great Gold Guru]

Anybody got any experience with property rentals in Welcome Bay area of Tauranga ?. Have spotted what looks like a Keith hay home on 500sqm for asking price $250k ... If you could get it for 10% off that I would have thought it would be a good buy. Estimate of rental of $300pw.

Any experience with Keith Hay homes anywhere ??

Thanks

[minimoke]

Tauranga has that enormous subdivision being built (name escapes me) out by Pyes Pa so I’m not sure what that is doing to the overall accommodation market. Keith Hay, as I understand have a reputation for building “affordable” homes.

[The Great Gold Guru]

Are you talking about "The Lakes" ... development potential of around 2000 new homes over the next decade. I'm just thinking there is little profit in a modern subdivision at anything less than $150k per section. If you can get a near new home on it for $75k ( 110 sqm, 3 bed , carport , driveway , deck ) then it looks like quite a good deal.

[minimoke]

Yes – that might be the one. I’d looked at it as Tauriko. I wouldn’t be buying there either can’t recall why I didn’t like it. Something about a motorway or some kind of roading. . My only concern would be the level of overall housing stock available to Tauranga residents – too much supply will generally, drive rents down. But I think the Lakes is trying to be quite posh so may not impact other areas.

[cliff]

The Lakes development is located in the suburb of Pyes Pa. There is a completed large sub division at Tauriko which also houses a modern industrial estate. Tauriko is a mile or so from the top end of Cameron Rd heading north out of town. Plenty vacant sections all over Taranga, Papamoa at the moment so picking one up for under $150k won't be that difficult...not sure if you could throw a $80k Keith Hay on one...building covenants etc.
Certainly no hurry if your looking at getting some action down this way.
GGG would suggest Greerton rather than Welcome By if you are looking at some cheaper rentals, better constructed houses and closer to the city and you wont pay much more.

[The Great Gold Guru]

Thanks Cliff, Yes a Keith Hay home is not my prefered option , I would rather buy an ex-state or 1950-1960 era house. The agent has got back to me and the property sold earlier this week for $240,000. He also confirmed it was bought by an investor and is already let at $300. Tenancy starts on settlement date ... that's how you do it.

I will look at Greerton, thanks for the tip.

[Dr_Who]

Papamoa is a nice place.

I didnt know you can get a nice section there for less than $150k. Is it clsose to the water?

[upside_umop]

house prices still to fall a further 10% according to bollard....25% from their peak. decent size fall compared to most other corrections huh.

one thing that is positive is to see the banks in us are forecasting profitable 2009. this will bring back a little confidence and they should start to lend...i'd almost be confident to say this is the bottom of the market over there...be interesting to see what happens to wholesale rates internationally from now on, which in turn will help dictate rates here.

talking about rates here, the lowest 5 year fixed is now 6.49 with kiwibank, up from the 5.90% posted earlier...seen the bottom in these too?

[minimoke]

house prices still to fall a further 10% according to bollard....25% from their peak.

In March 2009 Quotable Value were saying ”Average sale prices had declined 2 percent during the year to $383,786, because fewer low value properties were selling.” And in December they were saying a 6.8% decline in national property values over the past year”. So I guess we could argue the toss that prices have dropped between 6 – 9% off the highs. Add Bollards 10% we are looking at a total fall of between 16 and 19% off the over-inflated highs - a long way from the predicated 30%. And note how the commentators are all backtracking so the picture does not look nearly as gloomy now as they had originally predicted. Simply more reinforcement that Shrewdy would not have lost the shirt off his back if he’d bought in January 07.