NZ 1st homebuyers are ScReWeD...

[CAM]

Hi all,
Approx 50 pages ago I asked for some advice on buying my first house. Have been following the thread and reading everyones views. Been great reading.

My wife and I have spotted a house we are quite keen on. We weren't actively searching but this one popped up so we went and had a look at the open home last week and we quite like it.

Its a brick place built in 1957. 3 bedrooms one bathroom, single garage 2 carports. Rooms are of a good size. 9 foot stud. Big windows (wooden) and some of the other features makes it look like is was an expensive house at the time. Flat 1330sqm section. It has insulfluff? in the ceiling and a couple of heat pumps. Fairly new hot water cylinder and has some new piping coming out of it. The roof is a decramastic tile I think ....that has been recently repainted/resurfaced?...could be hiding something??

Is there anything else I need to closely look at with a house of this vintage??
Will get a builders report regardless anyway. But just after some views from the "experianced" home buyers on here.

Thanks in advance

[Dr_Who]

Sounds like a very nice house CAM.

Make sure you get a LIM report and a good solicitor. Have your agreement subject to builders report assuming you have your finances sorted.

I love character homes. Cant go wrong with a good quality character hardwood home.

All the best.

[Crypto Crude]

house prices HAVE to fall...
or Wages have to go up at least 30% to keep pace...
One or the other will give...
It will be housing...
Falling interest rates adds to housing attractiveness, so slowly it is coming in favour... still far off...

.^sc

[shambles]

Evening folks, my first post here, altho I have been following the site with interest as an observer.

My last weeks experience may be of interest...

I listed one of my rentals in Chch on Monday. This particular property was purchased in '03 for 162K. I rejected an offer in '05 for 340K. My RV peaked in '07 at 370K.

Multi offer on Thurs with 4 bids ranging from 210K - 310K. Currently under offer.
Lot's of interest, excitement even, but the price has certainly moved back.

My gut has been telling me values may have dropped more than the stats are showing, last weeks offers have only helped to strengthen that instinct.

My belief .. is that market sentiment is changing quickly and will bottom this winter. Maybe another 5% drop? 10% MAX.

We'll see.

Look out 2010, the game is back on - I think the traditional fundamentals, when balanced, are pointing at a 'return to business as usual' - including (slow) capital gains. It shouldn't, it's crazy - as the topic of this thread rightly suggests it makes life very difficult for 1st home buyers, but I think it will.

HOWEVER, If - the CC/GFC worsens, recession becomes depression, unemployment hits 9%, or if bio threats kick up a couple of gears then I'll eat my words

Like The Great Gold Guru, I'm releasing some equity to stake my claim in Devonport before the top end takes off again.. And holding my portfolio in Chch where the yields are better.


Thanks everyone for the interesting reading and many informed opinions - I think this is a great online community and a useful educational tool!

Disclaimer: I could be completely wrong.:o

[Financially dependant]

Thanks for sharing your experiences Shambles, it is always good to get first hand accounts......& welcome aboard!

[George]

Flu scare has passed its peak going by latest news - they must
have sold most of the tamiflu that was nearing its expiry date
A woman from 'Whatpricemyhouse' is coming Saturday to appraise
our house even tho told her we are not selling in the near future.
She emailed us earlier and said it was worth close to CV of 315k,
we will see what she says but surely the price is pure guesswork
until its tested in the market.

[minimoke]

I listed one of my rentals in Chch on Monday. This particular property was purchased in '03 for 162K. I rejected an offer in '05 for 340K. My RV peaked in '07 at 370K.

Multi offer on Thurs with 4 bids ranging from 210K - 310K. Currently under offer.

Back in 03 the national median price was somewhere around $200k. Today its around $335. Canterbury / Westland was around $173,000 and is now $290,000. Looks to me you’ll do quite nicely out of that one. Thanks for the hard data!

[duncan macgregor]

Back in 03 the national median price was somewhere around $200k. Today its around $335. Canterbury / Westland was around $173,000 and is now $290,000. Looks to me you’ll do quite nicely out of that one. Thanks for the hard data!

That is what most of the people dont catch on is how good an investment property is. If the person bought the house on a deposit just high enough to make it self supporting with rent covering interest, rates etc then refinanced in three years time to get their initial deposit back its an investment hard to beat. Let us presume looking at the above figures that this is what happened.
1, National median price$200,000 in 2003 gained $135,00 in six years or $27,500 PA
Initial deposit lets say $40,000 to make it self supporting
$40,000 for three years then get your money back and do it with your second property.
The mugs in the game fail to understand the simplicity of doing that and try to time the market or gamble on interest rates.
Tomorrows interest rates can do anything always keep the figures to what you can afford and understand.
The opportunity to buy your first property is your first priority dont get to smart or you will miss the bus. Its the banks money you use not your own in the end its money for nothing.
Macdunk

[The Doctor]

was an abberation...and the correction has still not occurred.It will.

[Crypto Crude]

so mackdunk,
in hignsight,
Should I have bought a 250k house, for 300k...?
should I have also fixed interest rates at 9-10%...?

welcome to the board shambles...

.^sc