Now is the time to buy property

[Stranger_Danger]

Dunc,

Wanna answer me a question?

If the answer to factories closing and businesses failing is buying residential property, then why was the average price of residential property sold in Detroit in December $7,500 USD?

Maybe - just maybe - the state of the residential property market there reflected demographics, business conditions, and the wider economy of the area?

If you predict a future of mass unemployment and business failure, the answer is NOT to buy residential property as an investment. This is merely a leveraged play on how the bigger picture is doing.

[Crypto Crude]

Mackdunk
Ive seen Braveheart... and I completely understand where your coming from Mate.... after decades of supression from Longshanks, (Edward 1 of England), yourve decided to go out hell bent on blood, even if it means attacking friendly, local online posters (who are right)...
after decades of murder, rape, pillage of your countrymen, it would be enough to make any grown man blood ravenged...

yourve sacked countless towns... and yourve destroyed countless threads with your dribble...

do you want another destroyed thread...?

You what happens to William in the end...?

.^sc

[minimoke]

Dunc,

Wanna answer me a question?

If the answer to factories closing and businesses failing is buying residential property, then why was the average price of residential property sold in Detroit in December $7,500 USD?

I'll leave Dunc to answer that question. But I do think there is an inherent danger in comparing the US (sub-prime) property market in one isalated city whose population has shrunk (halved) regularly over the past 4 decades whose economy is somewhat reliant on a dinosaur age motor industry with little old NZ.

[Arbitrage]

But people have to live somewhere. The population of Auckland is around 1.4 million. Growth rate is 1.5.% per year which is driven by both net natural growth and immigration. That means 21,000 extra people need somewhere to live each year. Nothing much is being built at the moment here as reflected in the building industry, and the transport system limits the spread of the city so puts more pressure on the existing housing stock nearer the central city. Houses aren't selling so more people are renting. I enjoy being a long term property investor in Auckland.

[The Doctor]

people need homes to live in.Its high time the tax breaks for speculating in property were closed.

[fungus pudding]

people need homes to live in.Its high time the tax breaks for speculating in property were closed.

There are no 'tax breaks' for property investors. It's a myth. Tax treatment is the same as any other business activity in NZ. Same goes for any other investment activity such as shares.

[Arbitrage]

Perhaps the Doctor could be more specific about what these tax breaks are and how they are different from any other business?

[upside_umop]

But people have to live somewhere. The population of Auckland is around 1.4 million. Growth rate is 1.5.% per year which is driven by both net natural growth and immigration. That means 21,000 extra people need somewhere to live each year. Nothing much is being built at the moment here as reflected in the building industry, and the transport system limits the spread of the city so puts more pressure on the existing housing stock nearer the central city. Houses aren't selling so more people are renting. I enjoy being a long term property investor in Auckland.

Has anyone ever thought of the elasticity of people to stay an extra few years in a flat environment? Or to consolidate to save?

What about changing of peoples behaviour?

I dont think we'll ever see houses as cheap as the early days like you older folk had, and our generation will just have to get used to that. Easy credit and deregulation has taken care of that those days wont exist.

You do have to admit that house price has overshot the mark a bit in this last rally dont you?

Also, it depends what your wanting to buy that depends on the right time.

If we could separate the statistics, I think you would find first home buyers typical houses will be reducing in value at a faster rate than say the mid-market properties. Most people in the market for mid-market properties will have no trouble with a deposit whereas first home buyers are now restricted by the 20% threshold imposed by most banks. This equals less demand for the typical first home buyer property. If you talk to a few honest real estate agents who are actually objective, they will tell you thats what they have seen.

[upside_umop]

There are no 'tax breaks' for property investors. It's a myth. Tax treatment is the same as any other business activity in NZ. Same goes for any other investment activity such as shares.

I think hes talking about 'ring fence property losses.' Its not in other countries that im aware of...

Housing is unproductive...we need policies that reflect that.

[minimoke]

, I think you would find first home buyers typical houses will be reducing in value at a faster rate than say the mid-market properties.

I think the Welcome Home Loans will help prop up this end of the Market.