NZ 1st homebuyers are ScReWeD...

[peat]

Haven’t heard from Bernard Hickey (30% drop man)

Hes ameliorating his views here
http://www.interest.co.nz/ratesblog/...-than-to-rent/

[Dr_Who]

Haven’t heard from Bernard Hickey (30% drop man) or Gareth Morgan (40% drop man) today. I wonder why?

Japanese word is ... Fulos.h.ito

[minimoke]

Japanese word is ... Fulos.h.ito

BH really is. In that article he wrote he reckons its cheaper to own providing you exclude rates , insurance and maintenance. Duh!

And he hasn’t found a standard measure for valuing rates, insurance and maintenance. Well he was able to find a standard measure of the preferred market peak (Nov 07 median price). By taking this data point in an over inflated market he’s spruiked his views relentlessly for the past year and a half. He must be loosing his touch if he can’t make up a value for RIM.

[Dr_Who]

Try getting a decent house in a decent area for a discount now. I dont think you can, there are plenty of people looking at open homes.

[fungus pudding]

Try getting a decent house in a decent area for a discount now.

You will. Patience is definitely a virtue if house buying. Big drop to come. It is unlikely to be sudden but I'd bet on a gradual easing over the next two to three years. The overall cumulative drop will be significant.

[Dr_Who]

Big drop? What big drop? Your assumptions are just that, assumptions with no substantial evidence.

The evidence is in the pudding. Just have to go to all the open homes and auction for good quality properties in good areas and you will see the interest. In fact, a number of quality properties in good areas are selling at above CV in auctions recently. Good interest from buyers coming out of the woodworks with all time low interest rates. The housing markets in US, Hong Kong and Aust are also seeing evidence of stablising.

You now cant negotiate favourable discount prices like you could a few months back.

1st home buyers who have waited too long will soon, yet again, miss out.

[fungus pudding]

Big drop? What big drop? Your assumptions are just that, assumptions with no substantial evidence.

The evidence is in the pudding. Just have to go to all the open homes and auction for good quality properties in good areas and you will see the interest. In fact, a number of quality properties in good areas are selling at above CV in auctions recently. Good interest from buyers coming out of the woodworks with all time low interest rates. The housing markets in US, Hong Kong and Aust are also seeing evidence of stablising.

You now cant negotiate favourable discount prices like you could a few months back.

1st home buyers who have waited too long will soon, yet again, miss out.

Or perhaps you are seeing how property markets fall. It's never a straight line down, but the drop, or downward slide, is coming. Of course it's an assumption - isn't everything about the future? But the evidence is overwhelming. There will be an exodus from inexperienced landlords soon, and with rentals almost certain to drop - there won't be many buyers. A lot of the market of the last few years has been driven by new investors who seem to think that all you do is buy a property and bank the rent, fuelled of course by low-equity bank loans which have tightened up and will stay that way for a long time. Judging the market by last month's or the last quarter's performance is extremely risky.

[Financially dependant]

volume is up but price is down......If I needed to sell I would negotiate/discount to get it sold before winter, before the prices start to really drop on much lower volume.

I'm with fungus, patience will be well rewarded.....mortgage rates are going lower, so are 1st time homebuyers houses!!

[Brut]

I am with Dr Who! There are alot of cashed up buyers out there waiting for the right property (ie. quality properties in the right school zones etc) or Investors looking for cash-flow properties.

From my experience I have seen a huge influx of buyers at Open homes in the last few months. We recently listed our property at $769,000 and had 4 cash offers (between $740 - $755,000) in the first week of marketing.

I have attended 3 auctions in the last month,

1. Renovated house in Ilam, CV only $430,000 but sold under hammer for $900,000.

2. Renovated house in Bryndwr with CV $520,000 sold under hammer for $725,000.

3. 2 year old house in Prebbleton on 1 acre of land. CV $600,000, sold under hammer for $895,000.

Properties that have been on the market for awhile were probably overpriced to start with?

[The Doctor]

1st homebuyers are STILL SCREWED!