NZ 1st homebuyers are ScReWeD...

[Year of the Tiger]

I remember the 1st house in the Wairarapa that my late husband and I bought (built) back in the early 70's. The bank (BNZ) wouldn't lend so that we could buy an existing home, and you could only get a "State Advances" loan if you built a new house. An uncle who was a builder did us a good deal so off we went on our journey of discovery to build our first home.

We learnt that when calculating our ability to repay the mortgage, State Advances wouldn't take my earnings from a full time job into consideration as I was a woman and women get pregnant and then give up work to raise their kids. It didn't matter that my savings alone paid for the section so it was only the cost of the house we had to find.

We managed to just scrape in and finally moved into our very modest little 3 b/room house. I thought at the time, wow, we made it and this is going to be our home for the next 25 years.

Wrong..... we sold it 4 years later and doubled our money. Then moved up to the Bay of Plenty...

Every time we went through this exercise, we struggled but always made reasonable profits after 3 or 4 years, and never once regretted that struggle to get a bit further ahead each time.

YOTT

[upside_umop]

im here shrewd..

2 years + im comfortable sitting on the sidelines...
im not really in any position to buy for 2 years anyway, not until i have sustainable cashflow.
will buy in chch, around university area and live with flatmates to ease the pain...and to carry on partying up! by then, i would expect rental yields to have increased too.
i see the university area as bluechip, and would move on myself after a bit, while still renting the house.

im thinking upto a 20-30% decline in real terms.
ie, 3% inflation for 3 years, slightly over 9%.
the rest made up from falling prices.

[AMR]

I'll be buying around the North Shore area, possibly looking up north to Warkworth and Orewa. Many transport improvements and amenity improvements there, not to mention proximity to Massey Uni and SH1.

So....do kids really cost that much? I would have though the benefits and working for families makes it a cashflow-positve venture.

[Crypto Crude]

First homebuyers...
You seriously got to look at Bermudas pick of ROMA... RPM...
This stock will be worth dollars in a few years...
Its in early stages of certifying 1TCF of gas....
Worth $3-4 per share...
Disc Held since 6c... out at 6.7c in a very bleak market day, back in at 7c...
will not be selling... Long term hold...
This is my favourite stock, probably one of the best Ive ever seen...

.^sc

[minimoke]

Marion Street, Labours property expert, isn’t worried about dropping property values. She reckons that what we are experiencing is a slow down in the rate of property value increases. She’s not worried about a loss of equity in the Governments new Home Loan scheme so now looks as good a time as any to buy!

[fungus pudding]

Marion Street, Labours property expert, isn’t worried about dropping property values. She reckons that what we are experiencing is a slow down in the rate of property value increases. She’s not worried about a loss of equity in the Governments new Home Loan scheme so now looks as good a time as any to buy!

Hahahahaha - ah - hahaha That's all I need to know. Time to get out of the real estate market alright.

[Halebop]

If you get a good job in your 20's & 30's (or before you have major family commitments - kids), and buy a house early enough, you don't really have to worry about all this.

My wife and I ( very early 30's) pretty much paid off our $480k mortgage (first home) in 4 years, thanks to both of us having good jobs/high incomes together with some help from some investments that came good (ie see 10 baggers below).

I must say, however, the combined income really really helps.

So Steve, the way we make real property achievable is to earn higher than average incomes and make a few 1000% returns on listed shares? Not quite a lesson on real estate riches nor affordability methinks.

[Dr_Who]

The Real estate institute is trying to convince us the median is relatively stable. But once again smoke and mirror prevail because they are reporting sales rather than values. What are selling are small volumes of higher value properties at discounted prices. The market is in the poop and so is financing.

That's cos the real institute is run by a bunch of idiots who are probably long on property and got caught with their pants down. I have no time for these hill billies. They are abit like these so called "financial planners" who put all their clients into a risk free diversified portfolio of different finance firms.

[Steve]

That's cos the real institute is run by a bunch of idiots who are probably long on property and got caught with their pants down. I have no time for these hill billies. They are abit like these so called "financial planners" who put all their clients into a risk free diversified portfolio of different finance firms.

Why can't the numbers be based from an independent source such as LINZ or Dept of Statistics?

[Dr_Who]

Why can't the numbers be based from an independent source such as LINZ or Dept of Statistics?

It is called "talking their own book". The realty industry will advice their clients that will benefit themselves and not their clients. They have seen their revenue halved so have to talk up the market to regain lost income. That's why I never make decisions on my property portfolio on the advice of a realty agent. I would talk to them to get the feel of the market, but will do my own research and make my own decisions.

Those that listen to the realty industry's BS is asking for trouble.