Good news Stories

[Ptolemy]

Also from the QV, supporting your take.

http://www.qv.co.nz/propertyinformat...et07082009.htm

Basically says that properties in the lower end of the market not selling and most sales in the mid/upper which is dragging up both medians and averages.

This supports your supposition FP. Interesting that most people are interpreting higher prices as a bad thing, yet evidence is pretty clear that a return to increasing house prices and higher debt levels on unproductive assets are definitely bad for an economy.

Any renewal of the property boom is likely to result in another recession before we have a chance to recover from this one.

[winner69]

Don't fall into the trap of interpreting the average price increase as a value increase. For instance in my area averages and median are both up, but $400,000 will buy a very much better property than it would have around 18 months ago, so values are down. The same applies broadly across the price ranges. QV and the REINZ both use the misnomer 'value increase' to describe any numbers that show an increase. It's deceptive.

I see Reserve Bank got involved and intro a new stratification index which is designed to allow for cheap / expensive suburbs sort of stuff and give a realistic view ... working with REINZ I think

[fungus pudding]

I see Reserve Bank got involved and intro a new stratification index which is designed to allow for cheap / expensive suburbs sort of stuff and give a realistic view ... working with REINZ I think

Yep, and it's about time. Not sure when the new system will start, but it's not too far away.

[minimoke]

Basically says that properties in the lower end of the market not selling and most sales in the mid/upper which is dragging up both medians and averages.

Actually, in July, according to QV there was more activity in the low end stock and values are increasing in the mid range homes.

[winner69]

Yep, and it's about time. Not sure when the new system will start, but it's not too far away.

This week for July sales I gather

[fungus pudding]

Time for a friggin' tax on secondary properties !!!!

I.e. a requirement for secondary properties changes in value to be registered every tax year and the gain added to rents and taxed.

If the damn politians weren't so heavily invested in secondary properties this would have happened ages ago!

Presumably you'd like to see the same rules applied to shares as well. They've always been treated the same.

[The Great Gold Guru]

I own 8 rental properties ... I aim to double that in the next 12 months ... houses are cheap , rental demand is increasing , enough said.

Raising finance will be the hard part ... finding great capital/rental growth property will be easy.

Current portfolio sits at 63% LVR and is cashflow positive by $1800pm ... equity and cashflow to burn !!

[minimoke]

Don't fall into the trap of interpreting the average price increase as a value increase. For instance in my area averages and median are both up, but $400,000 will buy a very much better property than it would have around 18 months ago, so values are down. The same applies broadly across the price ranges. QV and the REINZ both use the misnomer 'value increase' to describe any numbers that show an increase. It's deceptive.

FGP, these figures have been used for years and years. They have been used during times of "value" increase, boom times, bad times and now. They have been used by Governement, treasury and the Reserve Bank for policy setting. What they do is show an overall trend.

To find the true value is proably impossible because there are too many variables in trying to make a comparrison. For example in my neighbour hood you'd need to find two properties with the same sq metres, same no of bedrooms, bathrooms, lounges etc, same size land, same suburb, same school zones, same proximity to desirable services, distance from undesireable things etc. One of these house has to have sold a year ago , the other today to make a comparrison. It can't be done - and if it is the data can't be used to establish a national trend.

Your point remains valid though but I'm not aware of any measure where someone goes out and says what, say $350,000 will buy me in July '08 and what $350,000 (inflation and whatever else adjusted) will buy me in 2009. Over the past year or so there have probably been too few listings to make any comparrison reliable.

[fungus pudding]

FGP, these figures have been used for years and years. They have been used during times of "value" increase, boom times, bad times and now. They have been used by Governement, treasury and the Reserve Bank for policy setting. What they do is show an overall trend.

Agreed, but after a large reduction in interest mortgage rates, new and tighter bank lending rules (particularly for first time buyers) and a general change in market sentiment, things change. The market has not moved in unison, and so there is the danger of interpreting a median rise as a rise in values. It's not always the case - and it certainly isn't currently.

[Dr_Who]

I own 8 rental properties ... I aim to double that in the next 12 months ... houses are cheap , rental demand is increasing , enough said.

Raising finance will be the hard part ... finding great capital/rental growth property will be easy.

Current portfolio sits at 63% LVR and is cashflow positive by $1800pm ... equity and cashflow to burn !!

Hey TGGG, have you had a look around Grey Lynn and Ponsonby? The properties around there are in great demand. Crazy buyers are paying a huge premium to the valuation and outbidding eachother. I ve been looking around that area wanting to load up some more investment properties, but found it getting abit too pricy for me, so best to stay buying around the bays area.