Beach houses

[CJ]

any expats coming home in next twelve months will only have blood on thier hands property markets in UK-- USA-- GOING DOWN QUICKER THAN THE WARRIORS

Not if they were renting. And with the job market shrinking, they might even becomeing home with a nice redundancy.

[lakedaemonian]

I have a bit of a story to tell about beach houses.

I'm based in Christchurch and my family and I have a small little beach house that we purchased approx. 5 years ago.

We now have a few ankle-biters about so a bit more room inside and outside would be very useful, if not absolutely essential(according to my incredibly frugal part of my wee brain).

I clinically watch every single piece of property that gets listed and sold in my own and adjacent beachside suburbs. Things have ground to a halt in suburbs that have enjoyed some of the shortest average of "days on the market" for any suburb in the country in the runup of recent years.

A home a couple doors down has been listed by two different agencies and interest has been WEAK. This is a fantastic house, giant section, giant garage, beachfront, and mint...it's not moving.

At auction last week there were 3 bidders.

Bidding started at 300k

One bidding couple, sadly had to drop out at 330k, they were clearly as disappointed as they were short of funds to purchase.

The other fella and I bid until it topped out at 365K...auction halted....behind closed doors he was raised to 400k and bidding proceeded again........going nowhere.

It didn't hit reserve.......the other remaining bidder had first right to negotiate.

I was contacted to see where I stood...and told I would be contacted if the deal falls over

Reserve was 430K and the other bidder couldn't come up with finance and fell over.

Wer're not paying that kind of money in a slowing and now declining market........we'll be going backwards or stagnant for a good few years in my opinion.

Agent asks if I'd like to put in an offer...I think we're going to go in with an offer a good bit lower today.

When we first started looking at this house a quiet figure of just shy of 500k was mentioned....which is reasonable for a large beachfront home in very short commuting distance to NZ's 2nd largest city at the top of the market.

But the market is stroking out in my patch....and the real estate agents look like beaten dogs.

Just my 0.02c

[redzone]

Malcom there are a lot of wealthy dick heads in the Waikato....Im heading up for the field days....would do you good to meet a few...probably learn something

[redzone]

sorry....dont know if I would be that brave

[lakedaemonian]

I WOULD BUY IT IN A FLASH seems a excelent deal if TRUE-BEACH FRONT

beachfront........400k.........offer accepted.....2 days for us to mull it over

I reckon the market keeps dropping or trading sideways for 3 or so more years.....but we think this place is us.....until we get put in the dirt and then the kids can have use of it through the trust........would have preferred buying in another 12-18 months for the bottom(in my opinion), but it matters little in the greater scheme of things...we don't expect any "capital gains" for quite some time......someday this house will be beating off buyers with a big stick again.......probably when our toddlers are at uni

[Sideshow Bob]

beachfront........400k.........offer accepted.....2 days for us to mull it over

I reckon the market keeps dropping or trading sideways for 3 or so more years.....but we think this place is us.....until we get put in the dirt and then the kids can have use of it through the trust........would have preferred buying in another 12-18 months for the bottom(in my opinion), but it matters little in the greater scheme of things...we don't expect any "capital gains" for quite some time......someday this house will be beating off buyers with a big stick again.......probably when our toddlers are at uni

Good luck Lakedaemonian, and sounds like you've got the place you want. Can't really treat the home you live in as a true investment, but appears as if you have bought wisely and realistic.

[foodee]

Lake
Well done. Cap gain only relevant when come time to sell, otherwise it just ratchets up your rates.
Enjoy and be happy.

cheers

[fungus pudding]

Lake
Well done. Cap gain only relevant when come time to sell, otherwise it just ratchets up your rates.
Enjoy and be happy.

cheers

An increase in value does not mean an increase in rates. Your rates are struck annually by the local authority, and then divied up among ratepayers. Your rates will normally increase only by the % struck. A little more if your valuation is higher than average, and a little less if below the average increase. Even if the quotable value drops, your rates will increase, as long as the whole market has dropped the same %.

[foodee]

An increase in value does not mean an increase in rates. Your rates are struck annually by the local authority, and then divied up among ratepayers. Your rates will normally increase only by the % struck. A little more if your valuation is higher than average, and a little less if below the average increase. Even if the quotable value drops, your rates will increase, as long as the whole market has dropped the same %.

FP
The rating system consist of 2 components:-
[a] Use/location - this is calculated as a percentage of the land value from QV.
[b] Service provision (e.g water, refuse collection and so on). These are fixed charges set by the council.

[a] forms the bulk of rates demand and is directly related to land value and use (residential in this discussion). [a] is what I referrd to in my post.

NB I also mentioned rates on pp1 of this thread.

cheers

[777]

FP
The rating system consist of 2 components:-
[a] Use/location - this is calculated as a percentage of the land value from QV.
[b] Service provision (e.g water, refuse collection and so on). These are fixed charges set by the council.

[a] forms the bulk of rates demand and is directly related to land value and use (residential in this discussion). [a] is what I referrd to in my post.

NB I also mentioned rates on pp1 of this thread.

cheers

What funguspudding is saying though is correct. If everyones property increases in value by the same percentage then rates will stay the same relatively.