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.
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