NZ 1st homebuyers are ScReWeD...

[George]

Re property rising by 8% a year. Using our modest 2 bdrm villa in Henderson as an example, the cv in 2004 was 235,000. In 2007 just after we bought it was 315,000, altho I had to do it up a lot and had the cv raised to 325k which is about an 8% rise per yr from 04.
But an 8% rise to this year will mean our property will be valued about 435,000????? I don't see any similar houses selling for anywhere near that. At best we may hold our value from 07 but that would mean (I think) that it's the first period in Auckland's history without a reasonable percentage rise in values, bearing in mind that Waitakere has had a 4 yr wait since last valuation.

[bung5]

QV’s Residential Price Index for August shows that property values in the Wellington region are 2.4% lower than the same time last year. Values in the region continue to decrease.

where have property prices gone the last 5 years?? shrewd crude was right. Was better to save more and wait.....

[George]

But, also according to QV, parts of Auckland were above their maximum 2007 values with Waitakere just 0.3% below. Our September valuation was 345k which was 30k higher than when we bought so be interesting to see what the new valuations next month will show.
Bung, I don't know if we are better off but we can't be worse off. We now have about 200k equity after 4 years - doubt if we could have saved that amount, but even if we had, we perhaps would now have more choices rather than cheaper prices.

[bung5]

But, also according to QV, parts of Auckland were above their maximum 2007 values with Waitakere just 0.3% below. Our September valuation was 345k which was 30k higher than when we bought so be interesting to see what the new valuations next month will show.
Bung, I don't know if we are better off but we can't be worse off. We now have about 200k equity after 4 years - doubt if we could have saved that amount, but even if we had, we perhaps would now have more choices rather than cheaper prices.

Well done 200k is not bad at all. May I ask what your deposit was and weekly payments?

[POSSUM THE CAT]

George I live in Waitakere & look at Real Estate out of curiosity. QV Valutions in Waitakere are done by dreamers. Places with QV of between $350000 & $380000 and most of them need $100000 spent on them to bring them up to the standard needed for the Valuation. In some cases a realistic valuation. Would be land value less the cost of removing the mess of a building that is on it.

[fungus pudding]

George I live in Waitakere & look at Real Estate out of curiosity. QV Valutions in Waitakere are done by dreamers. Places with QV of between $350000 & $380000 and most of them need $100000 spent on them to bring them up to the standard needed for the Valuation. In some cases a realistic valuation. Would be land value less the cost of removing the mess of a building that is on it.

So generally speaking, are properties selling around $100,000 below the last QV? I can't follow your last two sentences.

[George]

Bung, 20% or 60k deposit and initial fortnight payments of $1000 but with a max of 1800, this was to be about a 16 yr term.
But with a tailored home loan we were able to pay a lump sum of 5% a yr or 12500, which we have been able to do. We also upped the payments each yr and are now up to 2000 a fortnight. It helped that we each had a gradual increase in income over the period so were able to increase payments as required. Don't forget we are many thousands down compared to fixing for a shorter period than the initial 5 years.

[POSSUM THE CAT]

Fungus Pudding they are mostly not selling as vendors are dreaming about getting QV but house need huge amount of money spent on them to bring them up to the standard they should be in. Some are so bad it would be cheaper to demolish & start again than renovate. I am not a carpenter but the faults are so glaring. Than an EX Motor Mechanic can pick it up. SAW some Ex blue Chip rentals about a year old up for mortgagee auction even these needed over $50000.00 spent on them at retail prices to bring them up to standard

[fungus pudding]

Fungus Pudding they are mostly not selling as vendors are dreaming about getting QV but house need huge amount of money spent on them to bring them up to the standard they should be in. Some are so bad it would be cheaper to demolish & start again than renovate. I am not a carpenter but the faults are so glaring. Than an EX Motor Mechanic can pick it up. SAW some Ex blue Chip rentals about a year old up for mortgagee auction even these needed over $50000.00 spent on them at retail prices to bring them up to standard

Qv looks at what has been happening in the market, not at what will happen. So if, as you say, properties all have quotable values of $100,000 more than market value, or more than they are selling for, the next qv will reflect that. But your comments seem to be a huge generalisation. The qv will generally reflect somewhere close to the figure the property will sell for. Not what the property will sell for minus cost of deferred maintenance.

[POSSUM THE CAT]

Fungus Pudding these same houses have been on the market at least six times in the last 2.5 years & they still think they will get close to QV. Nice Houses selling at around QV gives all the rubbish of the same size 7 locality a totally erroneous QV because they do not even look at the houses. If you go to look at house the real estate agent hands you a copy of the QV. I have even had a registered valuer. Value A property that I had a beneficial interest at $100000.00 over its worth because he did not do the required research of the building. I even asked the Public Trustee to ask the inept valuer to refund his exorbitant fee. As in my opinion he should not be allowed to value a matchbox. So a lot of the blame attaches to the Real Estate agents that in trying to get listing give Vendors an unrealistic idea that they will get close to QV. I can even go back over 35 years when in a provincial area where houses in Maori State & Private housing in mixed blocks were given exorbitant GVs as they were in those days as apolitical expediancy.