NZ 1st homebuyers are ScReWeD...

[Dr_Who]

I'll tell you what MD... dad would have got 615k about 5 months ago...
Now hes asking 575k... He will probably get much less...
First open home this weekend...
Come down to the national convention, while you are here come check out the house... we are looking for an escape goat...

.^sc

Properties in good areas in AK are selling below 2005 CV. I am still out of the market, cos I think this downturn will last longer then previous cycles. You only have to look over in the US property market to see that there are no signs of bottoming out yet. It is very ugly over there. The banks are holding onto 3 yrs supply of mortgagee properties they cant sell. OUCH!

[minimoke]

Ive asked you many times, you dodge the real questions potential investors want to know which is "what shall I do with housing NOW"....
.^sc

Step one Determine if you want an investment in which case do the sums and buy a house if it stacks up. If you want a home then do the sums on actual and intangibles costs / benefits and either rent or buy.

[Crypto Crude]

Mackdunk,
I never said I told you so...
All I said was my father is selling his house and he's looking to re-enter in a few years at the bottom, period...
readdress the situation early next year...
Simple stuff really...
...

If you sell to buy in any market then the odds are in your favour.

NO...
Not in a falling market...
If you sell, and re-enter in a few years you are much better off in a falling market....pitch a tent in the local Park if need be

.^sc

[steve fleming]

Step one Determine if you want an investment in which case do the sums and buy a house if it stacks up. If you want a home then do the sums on actual and intangibles costs / benefits and either rent or buy.

You are right to consider the intangible benefits of owning a home.

Some things in life aren't so cut and dry as just doing a monetary cost/benefit analysis.

Do people consider such a monetary cost/benefit analysis before having kids or deciding whether to send your kids to a private school, without taking into account the non-monetary benefits??

There are far more advantages to owning your own house than just monetary.

Think i've said before on this thread, but people who live their life as if every decision in life can be made based on an IRR calculation on a financial calculator really worry me.

[duncan macgregor]

SHREWDY, I will give you some numbers to work out from my own personal experience from a property i have had for the last 15 years. I bought a block of land built a house and numerous sheds etc all by the sweat of my brow.
Being a builder i did the lot myself.
I have just sold the property, so i take the agents cost and legals off then divide that figure by the purchase and material cost to see what percentage of gain that i had.
I find it comes out at 4.88. If i take the 4.88 and divide it by 15 which is the number of years i find that comes to an average gain of 32%. How many people have had a risk free average gain like that in the sharemarket over the last 15 years?. You still have not come out with your dads average gain but i feel sure its better than the 10% that i get ridiculed for quoting on this site.
Macdunk

[AMR]

Slight arithmetic error, if your house increased in value by 4.88x (or 488%) over 15 years your annualised gain is closer to 11.11% a year.

1.111^15 = 4.85, close enough.

[Crypto Crude]

Mackdunk,
I said im not quoting my dads returns because that is in the past and therefore unimportant..
Present situation not past...
Im sure we can go on and on with the success stories..
Id rather hear about who is profit taking in the housing market, and who is standing by and watching their house price fall?...
what are you currently doing Mackdunk...???
As I said My dads house is now down about 40k from the top...
Mackdunk Ive returned more than buffets average return in my first 5 years... Still up this year even with LMPO stuffed bar Otahu well and me holding 240k of them at 1.6c average...
...
Add in interest costs to your overall return aswell macky D...

.^sc

[Crypto Crude]

Very good Point Hiawatha...
How many hours did you spend on this project of yours Mackdunk?

.^sc

[duncan macgregor]

SHREWDY i didnt borrow to buy or build, but borrowed off and on for business reasons at a much cheaper than normal doing it any other way. Example buying and selling other property mortgagee bargains. Then take into account of not paying rent with the flexability of borrowing on the strength of it. The money that was invested in the property was not tied up dead money giving me business opportunities.
I dont care what the market cycle is, i will find a bargain in any market. You can argue all you like, but i have never known any rich person that is happy to pay rent unless its short term. I suppose being in the building trade, i meet more people that made a fortune in property than any other way. I am now looking to buy SHREWDY, let some other silly bugger do it for me this time. I would never borrow to buy shares but would borrow to buy property anytime. Macdunk

[Crypto Crude]

Is it possible that both the king pins are right????
The King is selling/sold up already...Mackdunk just stated he is a happy buyer...
....
How many hours did you spend on that project of yours...?
How much money do you reckon yourve lost on housing this year...?
....

.^sc