NZ 1st homebuyers are ScReWeD...

[fungus pudding]

Well, what do I know. Had a property on my watch list which I reckoned would go for around $790 - $820k but sold for $900. I’m going to have to watch the market closer as other properties I’ve been watching haven’t been going at reduced prices.

Don't panic - they will. Silly taxpayer funded equity schemes don't help the market, but prices will fall.

[minimoke]

Don't panic - they will. Silly taxpayer funded equity schemes don't help the market, but prices will fall.

I’m unconvinced there will be a significant and long term drop in value. Sure there will be bargains coming up from mortgage pressures but you get that in any market. Demand will slow down as people tighten their wallets and realise to trade they have to donate so much to the real estate agents new car. Cost of building will continue to go up. Tradesmen are harder to find and inflation plus demand from China will keep material prices moving up and the consent process shows no sign of easing. The value on “leafy suburbs” will keep going up as people with the money for a new home won’t want to buy into one of these government mandated slums that we’ll see popping up. The number of aged stock worth renovating is dwindling – meaning more demolition and rebuilds. There will be bargains in poor quality property – like some of Auckland’s apartments and some of the new builds look dodgy – like in Christchurch Aidenfeld – built on a bog with Housing Corp houses hidden in the there somewhere for beneficiaries. The challenge might be finding that bargain and then finding a sucker prepared to pay more than you did. The suckers must still be out there – check out Brick Securities advertising of Riverton – jeez, why would you bother.

[Crypto Crude]

minimoke-Well, what do I know. Had a property on my watch list which I reckoned would go for around $790 - $820k but sold for $900

Now they are giving them away...
Nine hundred dollars...


Furthermore, Ive seen a house Im very much so prepared to triple the reserve price on...
http://www.tv3.co.nz/News/Housetogou...1/Default.aspx
Whos going to turn up this weekend and put a bid in?
my bid is wait for it.... $3....

.^sc

[axion]

Now they are giving them away...
Nine hundred dollars...


Furthermore, Ive seen a house Im very much so prepared to triple the reserve price on...
http://www.tv3.co.nz/News/Housetogou...1/Default.aspx
Whos going to turn up this weekend and put a bid in?
my bid is wait for it.... $3....

.^sc

I'll go to $10, but that's my highest offer.

[minimoke]

The point is, these "government mandated slums" won't actually be slums. They'll probably be better quality housing

Ah, yes. The government has so much faith in New Zealand construction an Australian firm has been given the job of building Hobsonville. 3,000 houses, with 500 selling for around $350,000. So you’ll have 500 families who won’t be able to afford the mortgage, let alone upkeep and maintenance of these properties. To afford the mortgage we’ll need two to three families per home. And you don’t get too many old houses for $350k in Hobsonville let alone a new design/land/build package for that level. High density housing, low wage - and we aren’t going to see slums?

[minimoke]

Oh please! Pull my other leg! You don't know that these houses will be unaffordable, particularly with government taking on 35% of the equity, or that there will be two to three families per house. Nothing wrong with criticism. But if we must criticise, let's stick to what we actually know.
hiawatha

Auckland’s not my market. But if you’re telling me you can design/land/build quality housing for $350,000 then I’ll bow to your knowledge. In Christchurch Pegasus Town, for example, is being built out north with housing for 5,000 people. Their land is going for $345,000 for 810 sqm sections. Pegasus is being built on sand and exposed to a bitterly cold easterly and I can’t see much to recommend it – but people have bought in at this cost. Their houses will probably cost at least $1,500 a sqm to build – and this isn’t a resort town they are building – just a nice new area, presumably not unlike Hobsonvilles aspirations.

And what else do we know. 500 houses will be available as state rentals. To get a state rental you have to be on a low or no income, a refugee or migrant. So if your family earns less than $440 a week you can live in Hobsonville.


500 houses will be for those first home buyers on moderate incomes. It looks like Housing Corp considers $85,000 to be a moderate income for a coupe of people. So they’ll lend up to $280,000. Its at this point I’m not sure how Government is going to get people into $350k houses. It looks like the moderate income people still have to come up with $70k from somewhere and pay $1080 a fortnight on their mortgage.

There’s nothing here to suggest that there’s slum potential?

[Steve]

Anyone doing this to boost their deposit?

How to live rent-free at a top city address
House sitting is becoming a thriving part of the property sector as mortgage rates, rents and domestic costs continue to rise.

Once an ad hoc, temporary arrangement between family or neighbours, house sitting is now a business, with at least two agencies matching sitters with homeowners.

"It's really popular," said Antony Myers, owner of Auckland company Happy House Sitters. "It's difficult to save a deposit and house sitting gives them an opportunity to save money. It's a huge benefit."

[Crypto Crude]

Hey Steve,
Whats stopping a middle man from House sitting and then Renting it out to an unsuspecting guest, or flatmate...

How does the Home owner stand to benefit with no rent to cover some of the interest payments on Debt?

.^sc

[duncan macgregor]

Hey Steve,
Whats stopping a middle man from House sitting and then Renting it out to an unsuspecting guest, or flatmate...

How does the Home owner stand to benefit with no rent to cover some of the interest payments on Debt?

.^sc

First Question answer the POLICE.
Second question, The owner is not out to make money only to have someone to water the plants feed the cat and be a live in janiter to the property. I have a friend of mine who does this on a fairly regular basis who loves it. One place in particular had him back simply to prune the roses because he made such a fine job of it when they were overseas on holiday the previous year. He likes moving into flash houses in nrw neighbourhoods for three or four weeks at a time. He says its unpaid but seems to get some real nice pressies. Macdunk

[Steve]

Thanks for answering on my bahalf, MACDUNK. Wouldn't have put it any differently myself.

While I posted the link thinking of those of you who are saving up to be first home buyers, the comment that SC made about 'what's in it for the home owner?' makes it worth mentioning that sometimes we do need to think beyond the financials when considering the whole picture...