NZ 1st homebuyers are ScReWeD...

[Crypto Crude]

Halebop
I C...cheers for info on 401k...
do you think NZ needs some system where the onus is put on the individual rather than the Government?
last week I was given a free copy of 'The New Zealand Investor'
dec/jan issue - how the kiwi can fly...
rather than dispose of it, im offering it to the first person who replys with the postal address, and I will post it over the w/e ....
Postal address must be in New Zealand...
articles include... amended offshore tax proposals
Air NZ, taxing the nation with John key, Abano, commodities and hedge funds, rakon, MHjeweller, midcap index, met NZ, MFS... reply if interested in these topics...

[Cooper]

We own a home (in conjunction with a very nice bank who were generous enough to give me their money) but we were able to buy before the current boom. We've just "upgraded", against my protests, to a bigger home so that the significant other has a creative outlet for her renovating urges. Current mortgage is less than half the current valuation.

quote:Originally posted by rmbbrave
I think we will but it is possible I'm wrong. If I am wrong and I wait until 2020 to buy a house and they don't get any cheaper then I've wasted 13 years.

Why wasted? That comment is assuming that house ownership is such an over-riding goal that it should be pursued at any cost. If renting is cheaper, then you're not wasting 13 years, you're saving money for 13 years. The fear of not owning a home shouldn't be the absolute end for those considering buying... that is arguably what has created the current market state. Housing is just one portion of the basket of goods you are able to purchase.

[foodee]

RJS - good question and quite hard to answer.

We own our own home.
On pure economic grounds renting may prove 'cheaper', but then by the same token why own cars when going by taxi may prove cheaper.

Ownership gives us a sense of security, achievement and being able to practise the concept of 'continuous improvement' in life. There is not many asset that you can get the use out of it for years and get (usually) more for it when you are finished with it.

OK it is getting boring...........

So I may be wrong but happy. Did I say it is cheap or easy?[}]

cheers and a prosperous NY

[Crypto Crude]

im a christchurch New Zealand represental... I rep it hard...
if some gives me their postal address i will send it out, no strings attached...
If not then its no skin off my back...

Best quote, halebop said " and dare I say thrown another body at the problem"

RJS-you question also has something to do with the fact that people choose property because it has always always always been a strong performer in the past.... so no matter the price, and costs associated, and interest charges... that these things are only seen as minor to them in the overall picture... people still think that its guaranteed returns... which its not, and more so now than ever before...
NZ is in the top two countries with highest interest rates in the OECD, this also represents the highest level of risk...
With election campaigning next year... and every party promising large tax cuts, hand outs to gain votes, it will be extremely interesting that any redistribution of wealth back to the people is inflationary, if this occurs, interest rates will have to increase again, and again depending on how large re-distribution is...
tax cuts are not an issue, no tax cuts, no nothing!!
[8D]
.^sc

[Dazza]

here here... screwd

im in the same boat, in my early 20s.

im just waiting for all u old folks to die, and increase the supply of houses.


i need a diaster to make me mega rich

i will have cash awaiting, and will pounce like a jaguar on all the old baby boomers...

looking forward to it every day.


ps i hope theres a crash this year

and i hope i cashed up be4 that

[cantab]

We were hitchhiking 25 years ago and a couple in their thirties picked us up, they said they didn't own a house and were going to wait until the housing market crashed, prices were too high they said.

Rents are too low, in Australia they have been rising strongly, the same should happen here.

I believe the baby boomer thing will turn out to be a non-event because NZ's population will continue to increase. (Most of the world would walk over broken glass to live in NZ)The people will be there to fill the homes, someone else will take over the ownership as the baby boomers die off.

[cantab]

Renters, first-time buyers need help, says Labor
Mark Davis Political Correspondent
January 5, 2007
SMH


FIRST-home buyers and renters needed more government help to cope with a continuing deterioration in housing affordability, Labor's housing spokeswoman, Tanya Plibersek, said yesterday.

Ms Plibersek said a generation of young people was starting to give up on the idea of owning their own home as sharp increases in rents made it harder to save for a deposit and rising interest rates made home loans less affordable.

She was commenting on a Real Estate Institute of Australia report that the share of family income needed to pay the average home loan in NSW had reached 36 per cent at the end of last year, the highest in the country.

And the report predicted that rents would continue to rise this year, especially in Sydney, as demand for rental accommodation outstripped supply.

Ms Plibersek said there was a crisis in housing affordability that the Federal Government needed to tackle through measures such as better management of the First Home Owners Grant scheme and a wide-ranging cities policy to make sure housing stock expanded in line with increases in demand.

"We need to see a great deal more investment in smoothing out that rollercoaster of housing, to make sure we don't experience the boom-and-bust cycle that we have seen," she said.

"We need to see a cities policy that makes sure that there is affordable housing in all regions of Australia."

Ms Plibersek called for policies to ensure people on low incomes could afford to rent in the private market and for better targeting of the grant scheme so that it helped home-buyers without putting upward pressure on house prices.

The scheme, which is federally funded and run by the states, gives buyers $7000 towards the cost of their first home.

The real estate institute, which represents real estate agents, wants the grant increased and linked to movements in median house prices.

The institute's 2007 Real Estate Market Outlook report, published this week, said the three increases in official interest rates last year had resulted in demand for housing finance falling sharply in the second half of the year.

It predicted that because of less demand established house prices in Sydney would remain flat this year.

The proportion of rental properties that were vacant had fallen to a relatively low level last year, and rents nationwide rose by an average 9.8 per cent in the year to September.

The shortage of rental accommodation was not likely to improve soon as rising interest rates were deterring investors from buying rental properties.

http://www.smh.com.au/news/national/...777218795.html

[clar]

Hi guys. Great thread to follow – hopefully my rambling doesn’t lower the tone.
I certainly consider the deal we’re getting at the moment from renting (in both financial and, less tangibly, lifestyle terms) outweighs any desire to buy. Its a nice house with a nice outlook; every couple of weeks some joker comes and mows the lawns; and if the roof leaks a quick call to the landlord is all that’s required. There have been times when we’ve been betwixt and between, but a quick comparison of mortgage payments (plus rates, insurance, maintenance, etc) versus rent has kept us as we are. Interestingly, I do find that renters are called on more often to justify/defend their position than buyers paying premium prices are (which is in effect what’s being debated here). Cantab – perhaps if rents were higher our thinking would change. But if rents went up, wouldn’t the flow on effect be a further increase in property prices as demand for owning these rental properties likewise increased?

[Crypto Crude]

Dazza I think we are in the prime time going forward for us... because our generation is full of people just living for today...Internationals spend it up too... Chinese students come here and live it up off parents wealth... and this is wealth that gets passed down through generations... they buy expensive cars, come here and dont get jobs etc... of course you can see that they havnt worked a day in their lives!... In China they are only just gettin in on the credit card boom (25million c cards now) a few years back there were zero...
countries are becoming westernised, and that means to consume, eat out, create debt, obtain a service if it means you dont have to do it, brands are important... etc...

So here and globally there will be a trend to spend inheritances... and I guess people are already starting to spend up, and pay it off when inheritances come through... there may be no dough left once parents cash comes after they have paid for their self created debts... there will always be demand for luxury goods, usualy starting with cars,
Many rich BB's offspring have no respect for money because its always been there...
So after the BB's there will be a filter system, many of these rich will become pour... and there will be plenty of opportunity for all...

cantab-yes "most of the world would walk over broken glass to live here"... NZ with its small open economy could have expansive immigration policy and could full the short fall in BB's... but, its not until they come here, earn our wages, live our lifestyles until they realise that property here is expensive... If they want to get ahead, then they will go somewhere else, If they want the lifestyle they will stay...

If you have $100,000 .... and return 10% per year thats 10,000 .... 10,000/52= $192...
this will help your rent payments per week... if your an individual, you will be up....

[RJS]

Buying a house works because of the time factor involved ie your working
lifetime, any long term investment you pay more upfront for long term gain.

If your worried about purchasing a losing asset then position yourself in
the asset that the retiring BBs want in the next 10 years.

Its been predicted that BBs will sell their surburban home for a retirement
setting like rural, coastal, natural and quiet, The BBs who get retirement
lump sum will buy rentals for the regular income. My folks did.
They will buy to get what they want regardless of price because they
want the intangible benefits of security and safe investment.

Ive seen whats happening in
CHCH Id say buy a property you wont lose, its a scarce resource and will still
be for some time yet.

Anyone find it difficult to format the text in this small box?
cheers
Roger