NZ 1st homebuyers are ScReWeD...

**JBmurc** · 12-07-2021, 09:56 PM

[QUOTE=fungus pudding;894783][QUOTE=JBmurc;894772]

Originally Posted by fungus pudding

How about OWNING a res. property without a mortgage......etc. You can purchase it with a mortgage or two - repay them as your circumstances allow - then refinance, creating a tax effective mortgage.

Yes for sure .. we had a Morg over are last family home along with a company loan >> we decided to change tack sell the family home and move to a cheaper home area in turn being able to BUY Morg free .... then use new equity to purchase more spec property through company ... take profits ... buy commercial property=yield ...(all using RES rates)

Anyway you look at it RES Property is a great first stage of building equity and to put a roof over your head ... once the family home has good equity use elsewhere

**Bjauck** · 13-07-2021, 08:40 AM

[QUOTE=JBmurc;894793][QUOTE=fungus pudding;894783]

Originally Posted by JBmurc

Yes for sure .. we had a Morg over are last family home along with a company loan >> we decided to change tack sell the family home and move to a cheaper home area in turn being able to BUY Morg free .... then use new equity to purchase more spec property through company ... take profits ... buy commercial property=yield ...(all using RES rates)

Anyway you look at it RES Property is a great first stage of building equity and to put a roof over your head ... once the family home has good equity use elsewhere

Yep. For those who earn a sufficiently high salary and can raise the initial deposit these days, in NZ, under this government more than ever, owner-occupied home ownership is the foundation upon which a bigger nest egg can be built. Why?

1. Low interest rates on loans for residential real estate.
2. Untaxed annual return from the investment (imputed net rent)
3. Leveraged capital gain on equity.

It is also the tax efficient way of saving for retirement. Owner occupied homes (no matter what their value) are excluded from asset testing for some benefits/subsidies.

**SBQ** · 13-07-2021, 03:59 PM

[QUOTE=Bjauck;894806][QUOTE=JBmurc;894793]

Originally Posted by fungus pudding

Yep. For those who earn a sufficiently high salary and can raise the initial deposit these days, in NZ, under this government more than ever, owner-occupied home ownership is the foundation upon which a bigger nest egg can be built. Why?

1. Low interest rates on loans for residential real estate.
2. Untaxed annual return from the investment (imputed net rent)
3. Leveraged capital gain on equity.

It is also the tax efficient way of saving for retirement. Owner occupied homes (no matter what their value) are excluded from asset testing for some benefits/subsidies.

That I did not know!!

and for those that gamble it all for their children to get 'better?' private school education, appears to be their only goal for their children to have high paying jobs at the end. So they can afford to buy the high priced homes without consideration of the rest of the population that are stuck in rental situations. Yeh!! Great job NZ! What a way to address inequality and child poverty.

**Entrep** · 13-07-2021, 04:47 PM

I'm probably self-detonating a grenade here, but what's to stop people looking to purchase real estate from buying somewhere cheap and working up from there? I have owned the first house I bought for 10 years and never lived in it. Instead I rented much cheaper accommodation and built up equity and reduced the loan.

Auckland is a first class city and its popularity will only increase as the rest of the world turns to crap. Waiting for prices to drop to any significant degree is futile as demand will always be more than enough.

**fungus pudding** · 13-07-2021, 05:14 PM

[QUOTE=SBQ;894924][QUOTE=Bjauck;894806]

Originally Posted by JBmurc

That I did not know!!

and for those that gamble it all for their children to get 'better?' private school education, appears to be their only goal for their children to have high paying jobs at the end. So they can afford to buy the high priced homes without consideration of the rest of the population that are stuck in rental situations. Yeh!! Great job NZ! What a way to address inequality and child poverty.

Be assured that post,
2053, should not be attributed to fungus pudding. I most certainly did not post it

**peetter** · 13-07-2021, 06:23 PM

Originally Posted by Entrep

I'm probably self-detonating a grenade here, but what's to stop people looking to purchase real estate from buying somewhere cheap and working up from there? I have owned the first house I bought for 10 years and never lived in it. Instead I rented much cheaper accommodation and built up equity and reduced the loan.

Auckland is a first class city and its popularity will only increase as the rest of the world turns to crap. Waiting for prices to drop to any significant degree is futile as demand will always be more than enough.

There's absolutely nothing stopping them. You're correct.

**stoploss** · 13-07-2021, 09:14 PM

Originally Posted by Entrep

I'm probably self-detonating a grenade here, but what's to stop people looking to purchase real estate from buying somewhere cheap and working up from there? I have owned the first house I bought for 10 years and never lived in it. Instead I rented much cheaper accommodation and built up equity and reduced the loan.

Auckland is a first class city and its popularity will only increase as the rest of the world turns to crap. Waiting for prices to drop to any significant degree is futile as demand will always be more than enough.

40 % deposit required for an investment property that would stop a lot of people ......

**JBmurc** · 14-07-2021, 07:01 PM

Originally Posted by stoploss

40 % deposit required for an investment property that would stop a lot of people ......

Rising Interest rates as well ... I see ASB making the move 1yr fixed 2.55% their lowest

**Logen Ninefingers** · 16-07-2021, 11:16 AM

Inflation running hot at 3.3%
All that money printing, profligate government spending, and what became basically a free money giveaway to borrowers at the expense of savers - it's all now coming home to roost.
Something has to be done about these idiots paying any old price for aging housing stock & then using said house as an ATM to fund their lifestyles - the behavior (mania) of these people is bringing the country to its knees and destroying the purchasing power of our dollar. The housing markets out-of-control irrational exuberance has lead the Reserve Bank to act in crazy and outrageous ways to defend it, slashing the OCR to the point where credit issuance was unleashing a tsunami of new money & people were viewing borrowings on the same footing as earnings.

Let's get some sanity restored and if some people suffer of the consequences of their own decisions, then they only have themselves to blame. If you are weak enough to join in a speculative mania and end up paying the piper, look in the mirror to see the culprit.