NZ 1st homebuyers are ScReWeD...

[Crypto Crude]

Dazza,
I could have the cash in 3 days...
My strategy hasnt changed, I will wait a few years for the prices to fall off...
who could have imagined 2 years ago that interest rates would be this high...
10% house price growth just does not cut it anymore...
being patient has been the goal, and at the same time having Share portfolio growth means that Im seriously looking at that 30 year loan being cut in half......
52yr old man whatever...
[8D]
.^sc

[nelehdine]

If you've got a good tenant and fixed your mortgage a few months ago for 3-5yrs in the high 7's or low 8's this is all a storm in a teacup ... all these rate rises will do is slow the rush by investors to outbid first home buyers , this will push up rents as a consequence as the rental stock will diminish. If your in for the long haul and have a good strategy and some bullets left in your box of ammo there will be some good buying over winter .... and plenty of potential tenants looking to pay good money for quality accomodation while they try and save a deposit ( high interest rates will help with this ) for there own home.

Am looking to add further properties to my portfolio is towns like;

Palmie North
Wanganui
Napier
Hamilton
Lower Hutt
Waitakere City
possibles ... Whakatane, Ashburton, Matamata, Levin.

[George]

Well, may have jumped too soon, but my girlfriend and I have bought a do-up 1920's 2 bedder in Henderson for 312k. Cross-lease but quite private. Once tall trees have been trimmed in front there is a view across to the Waitakere Ranges plus a walkway to Westcity Mall and Railway Station. A few positives there plus will hold value with painting inside and out. Managed to get a 5 yr fixed at 8.3% but could only manage 60k deposit. Can pay it off in 10 years if able to knock 12,500 off principal once each year.
At 50+ I wonder if we are taking too much risk, it's certainly more expensive than renting but at 70 we will not have to worry about paying rent each week.
George

[trackers]

quote:Originally posted by Dazza

TIMMMMMMMMMBER

shrewd u got ur cash ready

this is soooooo sweet

come on all u middle aged scrouges FEEL THE BURN BURRRRN OF THE INTEREST RATES
A

time for us young fellas to get ready to POOOOOUNCE :d
MUAHAHHAH

Ahh life is good, 7.5% interest rate for another 4 years, and fantastic returns on our house...I'll be retired by 30 if this all keeps up (however the naysayers have been saying EXACTLY the same thing for almost 3 years now, they're bound to be right one day [8D] )

Today's Q.V email:

Welcome to QV's latest property statistics for NZ main areas for the period ending May 2007. You can also view further statistics and commentary for the main urban areas at www.qv.co.nz.

If you know of someone who might want to receive these free property statistics invite them to join.

Residential market up 11.1%

QV's May statistics report growth in national property values up 11.1% over the past year (calculated over the three months ending May 2007 in comparison to the same period last year). The growth rate increased from 10.6% reported in April with the average New Zealand sale price increasing from $366,032 to $372,552 reported this month.

"Despite some expectations that property prices may level off, the market has continued to strengthen. Sale prices in the main urban areas keep rising, driven by significant activity in the lower value localities" said QV spokesperson Blue Hancock.

"Although immigration appears to be slowing, high levels of employment continue to contribute to sale price increases" said Mr Hancock.

The residential property market remains buoyant in most of the main cities. Auckland City's property values increased by 7.5%, up from 6.6% last month. Hamilton, Christchurch and Dunedin also reported higher growth rates at 11.8%, 12.4% and 8.7% respectively. Wellington City remained stable with property values growing at 13.3% over the past year.

These trends are also reflected in the provincial cities. Property values increased in Wanganui at 14.1%, Nelson 12.3%, New Plymouth 11.3% and Tauranga 6.7%.

[Bel]

The most rapid gains are made at the last few years of a bubble. A crash in the Share market was written on the wall in 1996 yet it took till 2000 to eventually happen.

It's all about risk, theres greater rewards towards the end but in my view with a consistantly meddlesome, anti-high house price government its too bloody risky to be buying houses at such a high premium. (i base the price on the potential cash flow return, not wishful thinking capital gains)

For me there is other ways to invest that suit my risk tolerance better.

[trackers]

Median house price hits record $350K

BREAKING NEWS: The national median house price rose $1000 to a record $350,000 in May, according to Real Estate Institute figures out today.

http://www.stuff.co.nz/4096261a13.html

[Sideshow Bob]

Tick, tick, tick........

[George]

You guys are freaking me out. Another cost for 50+ buyers is mortgage insurance - $160 a fortnight for a couple. Tempting to do without, especially for two very healthy/drive safely individuals, but the alternative is a bit daunting. I have been informed our house would be 340k if it had been looked after, so some risk is reduced in our case I feel.

[The Doctor]

Good luck George!...the outer suburbs get hit first.At least you are fixed for 3 yrs at a res rate.$60,000 invested at the bank will get you over $5000 a yr gross at 8.45 %)

[Crypto Crude]

article is a few years old, but an interesting read...
Some people have said that it was the best real estate deal in history...
Peter Minuit, Director-general of New Netherlands, the Dutch West India Companys Colony in North America, In 1626 allegedly bought Manhattan Island for 60guilders worth of trinkets from the native Americans... By 1667 the Dutch were forced to exchange it for Suriname with the British (perhaps the worst realestate deal ever)... This sounds cheap but did the dutch really get the better end of the deal?... It is reported that 60 guilders was worth about $24 at the prevailing exchange rate... If the native Americans had sold the trinkets at a fair market value and invested the $24 at 5% after tax, it would now, be worth 2billion dollars... Today Manhattan is undoubtedly worth more than 2 billion, and so at a 5% rate of return, the Native Americans got the worst deal... However if invested at 10%, the amount of money recieved would be worth about

24(1+r)^T
=1.1^377=$97 quadrillion.

In fact 97 quadrillion is more that all the real estate in the world is worth today
No one in the history of the World has ever been able to find an investment yielding 10% per year for 377 years.... not even mackdadunk who thinks Property yields 10% over the long term........
8D]
.^sc