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  1. #151
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    Quote Originally Posted by baller18 View Post
    Don't think houses will double every ten years, as it will just not be affordable to anyone. However, I do think it will increase by 50% in the next ten years, it has to be more than inflation.
    Impossible for it to double every tens years. Which means a house in epsom and mt eden, the minimum price you would be looking at 3million? Thats insane. Herne bay 4-5 million?
    Incorrect - the average value does double ten years, unless of course you're not in a popular area (Gore anyone?). The only consolidating factor is every recession, which slows it down. However the same 10 year average does tend to apply.

    Numerous examples can be given. How much did houses cost for your folks? When did they buy? Do the math, it may just surprise you!

    EDIT: Yes it is unaffordable for many! However if you have 2 salaries and if you're good with your money then it can be done. I myself am limited to a $300,000 budget currently - So, I ask you, what can I buy for that in Auckland?
    Last edited by vorno; 15-04-2015 at 07:36 AM.

  2. #152
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  3. #153
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    I Dnt believe in the future it will, simply noone can afford anything in central auckland. Yes, my folks houses have increased five times, all their properties. But every ten years in the future will be way too out of reach dont you think?

  4. #154
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    Quote Originally Posted by baller18 View Post
    I Dnt believe in the future it will, simply noone can afford anything in central auckland. Yes, my folks houses have increased five times, all their properties. But every ten years in the future will be way too out of reach dont you think?
    That's why its best not to end up with a job that gives 3% PA rises. It becomes very difficult for those folk.

  5. #155
    Advanced Member Valuegrowth's Avatar
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    We are closer to severe housing crisis especially in Auckland followed by Queenstown and Christchurch. Auckland housing market is very hot now.

    First home buyers are at high risk if they buy property at inflated prices. It is time to apply value approach to the property market. We don’t see great value in the property market especially in Auckland. It is one of the hot property markets in the world. Auckland housing prices are at least overvalued by more than 35%. Surprisingly, Wellington housing prices have stagnated when compare with other cities. We should see strong correction in housing market especially in Auckland followed by Christchurch and Queens-town. Auckland property market is not affordable to students,business organizations, and first time home buyers. Their average weekly rent also has rocketed. Higher cost environment could create another crisis. It can lead to crisis in the banking system as well.


    http://www.nzherald.co.nz/northern-a...ectid=11426278

    Property investors are set to be labelled higher risk

    My ideas are not a recommendation to either buy or sell any property, security, commodity or currency. Please do your own research prior to making any investment decisions. Please note that I do not endorse or take responsibility for material in the above hyper-linked site.
    Last edited by Valuegrowth; 15-04-2015 at 07:35 PM.

  6. #156
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    Quote Originally Posted by baller18 View Post
    Yes, my folks houses have increased five times, all their properties.
    Your folks are part of the problem. Too many people investing in unproductive assets looking for easy tax-free capital gains, all the while feeding into the Auckland ponzi housing market.

  7. #157
    IMO
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    Yep thats so right Puggy. the Reserve bank governor wants capital gains tax in Auck and it makes so much sense ; but we may have to wait for the next govt to enact it.

  8. #158
    Advanced Member Valuegrowth's Avatar
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    Capital gain tax could be one of the good moves. Still we cannot avoid housing market correction in over valued housing markets. Just like in other countries such as USA and Europe, imbalance in the housing market will adjust in countries such as New Zealand, Australia, Singapore, China, Hong Kong, Taiwan and other over valued markets. It is time to avoid overvalued hot property cities in above countries. In New Zealand, housing market in Auckland and Queenstown are more vulnerable. How many financial institutions will get into troubles this time? It is not different this time. We are heading for lower housing prices and lower NZD.

    http://www.stuff.co.nz/business/indu...erve-bank-says

    Reserve Bank call to look at untaxed property gains

    My ideas are not a recommendation to either buy or sell any property, security, commodity or currency. Please do your own research prior to making any investment decisions. Please note that I do not endorse or take responsibility for material in the above hyper-linked site.

  9. #159
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    Quote Originally Posted by baller18 View Post
    Don't think houses will double every ten years, as it will just not be affordable to anyone. However, I do think it will increase by 50% in the next ten years, it has to be more than inflation.
    Impossible for it to double every tens years. Which means a house in epsom and mt eden, the minimum price you would be looking at 3million? Thats insane. Herne bay 4-5 million?
    Without controls on non-resident overseas-based buyers, whether local residents can afford to purchase local houses will become more irrelevant as long as more wealthy overseas buyers find our houses affordable and our country attractive as an investment destination. More wealthy immigrants will also add demand for the housing supply.

    However even without foreign buyers, continued low and lowering mortgage rates coupled with increasing incomes will mean that local buyers will be able to service bigger loans which will further inflate prices. Hence the Reserve bank wants to step in to mitigate the inevitable hangover when the party ends...

  10. #160
    FEAR n GREED JBmurc's Avatar
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    Quote Originally Posted by vorno View Post
    That's why its best not to end up with a job that gives 3% PA rises. It becomes very difficult for those folk.
    Or work in the export sector with AUS and your income will be down 20-30%
    "With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu

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