Why property prices in NZ are to high compared to other countries.

[fungus pudding]

yeah property was great buying but those days are over unless property prices crash unlikely or average incomes go much much higher ...

I had for few years a 4brd 1940's brick/roughcast new roof rental 15min walk to the Invercargill SIT use to get 300pw paid 145k sold it for 187k I see years later guys trying to get over 200k for it now also had a 14% yeild 8 block of flats overall stressful investments even with a property manager.

much rather run my own share portfolio which like the rentals has some of the banks money invested ..

everyone different though an I do hope once we've paid off are own home too buy a few debt free near new rentals for some passive income

Have a good hard look at commercial/industrial. It's tough to buy at present, but a dream to own and operate compared to residential.

[JBmurc]

Have a good hard look at commercial/industrial. It's tough to buy at present, but a dream to own and operate compared to residential.

yeah for sure esp if the buildings are modern

[robo]

Have you compared that to an investment in MFT over the same period? ... (I'll not mention Baidu as you'd puke!)

I like shares as well belgarion !!! but I tell you property has been very easy for me and I dont really have a huge amount of experience with shares to date but am well pleased with my current placing in the 2011 NZX comp

Im thinking late 19th centry new zealand folk art returns owns most other investment classes lately

[loofa]

I have two properties on the coast here in Hawkes Bay which were purchased about ten years ago for low 80's cash each and return 18500 each annually not exactly low yeild , both are valued at over triple this original cost and would be attainable in the current market.

Had to do a bit of painting myself over the years the odd plumber and electrician thingie now and then, otherwise mainance has been minimal.

I think what you are saying is this scenario is ancient history now and there are far better investments to be had , this is timely for me as I find my self scouring the property press looking for another addition at the moment !!!

Poor old behemoth BHP was at $6 in 1988 and is $45 today.
However it was very hard to gear BHP up in 1988 without the help of mortgaging your other property - your home in most cases
THAT is where the benefits of property help the investor -the mortgage liability does not go up with the gain.
BUT you can do the same with shares today
That is the type of logic I put forward in today's market.
No one expects property to appreciate much in the next few years. Other investments when luck or expertise comes into the equation can increase 10 fold in a quite short period.

[JBmurc]

I can't see NZ property going up much unless we have some major wage inflation(not likely or easy lending also unlikey)..but at the same time I don't think we'll see NZ property prices go down much at with low rates an increasing build costs...keeping a floor under the movement....so IMHO 2010-20 decade will be a zombie decade for NZ property of little movement

[duncan macgregor]

I can't see NZ property going up much unless we have some major wage inflation(not likely or easy lending also unlikey)..but at the same time I don't think we'll see NZ property prices go down much at with low rates an increasing build costs...keeping a floor under the movement....so IMHO 2010-20 decade will be a zombie decade for NZ property of little movement

Property prices are now due for another price escalation due to the increased cost of about to be introduced earthquake standards on new buildings. The upgrading of older buildings to higher standards will also increase the end price. Engineers are about to have a field day, with councils passing the blame parcel on to them. New blocks of sections will have to have engineers drill reports so whoopee guys who ends up paying?. The younger generation on the flights out so lets turn the place in to a great retirement home for rich overseas migrants. Macdunk

[George]

Just got our new valuation for Henderson, down 5%, yet a similar house up the road sold last week for 330k unconditional 10% above new value and 5% above 2007. House I painted in Glen Eden has held its cv at 355k but sold recently for 385k, again about 10% over. Values were judged up to July so maybe last 3 months has seen a lot of buyer demand and willing to pay over the cv. I think well located and maintained houses with some features such as a view are selling but the rubbish isn't - unlike during the boom.

[POSSUM THE CAT]

George go into Realestate Web Sites & see the number of properties that are being advertised below QV in the Henderson area

[George]

Hi Possum, most of the ones I looked at on trademe were for sale at 10% over the latest cv, and recent sales at over cv as well.
One not far from here is for sale at 260k, cv 290k, but it has rough tenants with a rotten bathroom floor etc. My read on things at this point is that a well maintained house in a good area etc. is holding or exceeding its cv. Won't know for sure till we sell which could be in 3 yrs or so. Would this be the first 3-4 yr period in Auckland's history when values have decreased - I see Rodney is worse off?

PS. A friend in Mt Albert his cv went from 360k to 390k yet he's in a poor area, ghetto music next door, his house is a mess, so there doesn't seem to be any rhyme or reason - perhaps his proximity to Maioro motorway entry is a factor.

[fungus pudding]

Hi Possum, most of the ones I looked at on trademe were for sale at 10% over the latest cv, and recent sales at over cv as well.
One not far from here is for sale at 260k, cv 290k, but it has rough tenants with a rotten bathroom floor etc. My read on things at this point is that a well maintained house in a good area etc. is holding or exceeding its cv. Won't know for sure till we sell which could be in 3 yrs or so. Would this be the first 3-4 yr period in Auckland's history when values have decreased - I see Rodney is worse off?

PS. A friend in Mt Albert his cv went from 360k to 390k yet he's in a poor area, ghetto music next door, his house is a mess, so there doesn't seem to be any rhyme or reason - perhaps his proximity to Maioro motorway entry is a factor.

Qv is not, and is not intended to be the market valuation.