Eyeing the door?

[LKSteve]

I'll need to find someplace to live soon as the pad I’ve been renting very cheaply for a few years will be sold soon to defray aged care costs for its deceased owner. I went & looked at a small unit today that could be described as a do-up. Anyway, this place is ideal, good location, solid construction, just a bit tired aesthetically. Nothing that a year or so part time renovating won’t fix. The big problem is that even with 60K cash as a deposit the payments combined with the rates & insurance make the cost of entry too high for comfort. The bottom line is that the property is too expensive . All property in nicer Auckland Suburbs is too expensive. I’m not an investor, just someone looking for a place to live. So I’ll not be buying. The vendor is an investor who wants out. The agent tells me that there is very little interest in the unit, or in any other property for that matter. I suggested the market was a bit flat, the agent said it was deathly quiet. If the property speculators aren’t buying & the first timers can’t afford to buy, what’s going to happen? I suggest the market is overpriced by at least 30%. With the dollar in freefall & interest rates high, money supply will tighten further. Leveraged property speculators must be eyeing the door.

[stephen]

Charming. What would I pay to live somewhere without a lot of racists living in it?

[tricha]

Like leeming jumping off a cliff and it has started to happen.

[minimoke]

Like leeming jumping off a cliff and it has started to happen.

Interesting metaphor. Leemings get caught in the rush because of population explosions and the desire to find somewhere better to live. A case of demand exceeding supply. This would surely be a great time for people to put their money into the property market.

[LKSteve]

Interesting metaphor. Leemings get caught in the rush because of population explosions and the desire to find somewhere better to live. A case of demand exceeding supply. This would surely be a great time for people to put their money into the property market.

Not yet methinks. I just had a call from a real estate agent who told me a half truth that they'd just had their quietest weekend all year. I'm guessing they've just had their quietest weekend in several years. The game is up in the New Zealand residential real estate market. When real estate agents start letting the truth slip you know there is real fear. If the market was flat they'd be saying it's rising. So when they say it's flat you know it's backsliding.