Auckland housing market

[Aaron]

I read a heart warming story in the herald this morning. There is a group of (mostly) NZers whose pay rises are keeping pace with the rise in Auckland property prices. It appears that the CEOs of large companies pay has been increasing at roughly 20% a year. So there you go it is not all doom and gloom. All those moaning layabouts without houses need to do is become the CEO of a large company and their financial and housing problems are history.

[winner69]

I read a heart warming story in the herald this morning. There is a group of (mostly) NZers whose pay rises are keeping pace with the rise in Auckland property prices. It appears that the CEOs of large companies pay has been increasing at roughly 20% a year. So there you go it is not all doom and gloom. All those moaning layabouts without houses need to do is become the CEO of a large company and their financial and housing problems are history.

Like the good advice of that great Australian politician Joe Hockey (and Treasurer) when talking about home affordability - if you want a house get a better job

Sage advice

[Aaron]

Like the good advice of that great Australian politician Joe Hockey (and Treasurer) when talking about home affordability - if you want a house get a better job

Sage advice

Life is so easy once you start listening to the likes of Joe Hockey and Gina Rinehart. I wonder if they are friends.

[cammo]

The Auckland housing market ( and rest of nz will follow ) is primarily due to New Zealand being viewed by foreign immigrants as safe, safe for kids , reasonably affordable housing relative to the world and your commuting distance. Nz is the Queenstown of the world , where people can gain entry with a reasonable wad of cash and a few qualifications and come somewhere where they don't get shot, car jacked, turn their houses into prisons, free schools, free healthcare, clean air etc etc etc. It is not going to change I don't think as the world globalises further. UK, s.Africans etc aren't going to stop coming here anytime soon. Add some Asian investors who can get cheap education for their kids in an English speaking country by owning some dirt here .....prices are now representative of global value- not our old wee red neck banana republic think me first world leader country. Unfortunately you can't have seagull prices when you are attracting eagles looking for somewhere safe to fledge their brood....they don't care about huge wages because the lifestyle wins out. Just ask a saffa what they think about being able to go to the supermarket after dark.

[Bjauck]

The Auckland housing market ( and rest of nz will follow ) is primarily due to New Zealand being viewed by foreign immigrants as safe, safe for kids , reasonably affordable housing relative to the world and your commuting distance. ...

True, NZ is good for wealthy immigrants who already have a good wad of cash to buy a house and manage to outbid locals relying on local income levels.

Immigrants also get an tax exemption not available to locals. Income from overseas investments or pensions can be exempt from New Zealand tax for their first four years of living here. Locals with foreign income have to pay local tax on their foreign income. Is that fair? Perhaps immigrants with overseas income should not be allowed to buy local houses during that four year transitional period unless they elect to pay NZ tax on their foreign income. Maybe during that four year period, if they want to buy housing, immigrants should only be allowed to build or buy new houses?

As for NZ being safe...true in some respects (accident rate on NZ roads notwithstanding) but manual workers in NZ work places (for example just look at standards at forestry, mines and quarries) have a greater chance of meeting an accident than in other "Developed" countries included Australia, UK and EU. However there again, many of the wealthy immigrants, who can out-bid existing locals to buy housing, would probably not be affected by such workplaces.

[cammo]

It's interesting you align safety with workplaces. Life safety is what I'm talking about. Those immigrants are likely to be white collar not blue. They appreciate the general safety and freedom available here. About 1 murder a week here, 50 per day in sth Africa for example. For a lot of them , social factors like Crime are their most important motivator for leaving.

[Bjauck]

It's interesting you align safety with workplaces. Life safety is what I'm talking about. Those immigrants are likely to be white collar not blue. They appreciate the general safety and freedom available here. About 1 murder a week here, 50 per day in sth Africa for example. For a lot of them , social factors like Crime are their most important motivator for leaving.

Workplace safety is part of life safety surely. No doubt the NZ murder rate is better than in South Africa and probably about the same or worse than in the UK and most countries in Europe.

NZ population 4.5m; ZA 53.0m. As the highest accident and murder rates globally tend to be for young males from disadvantaged backgrounds and ethnicities...bald notional comparisons are of limited usefulness and most ZA migrants to NZ are white or Asian white collar. But I agree, the South Africans I know, say that crime (and the threat of crime) is a motivating factor for them to come to NZ. When in NZ they also tend to live in good areas and work in safe office situations.

[Valuegrowth]

There was a NZD bubble and it is depreciating rapidly now as it is still overvalued. Similarly we should see housing burst in Auckland after this bubble. Every asset has cycle and property is not immune to external and local shocks. It is time to avoid property in Auckland. Cycle will repeat in a different manner.

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.

[baller18]

There was a NZD bubble and it is depreciating rapidly now as it is still overvalued. Similarly we should see housing burst in Auckland after this bubble. Every asset has cycle and property is not immune to external and local shocks. It is time to avoid property in Auckland. Cycle will repeat in a different manner.

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.

Just because the NZD is depreciating does not correlate with the housing crisis, the NZD is a lot more volatile...
Long term charts, house prices have been in an uptrend ever since... so however, you look at it, fundamentally and technically it is still in an uptrend...

[Valuegrowth]

Just because the NZD is depreciating does not correlate with the housing crisis, the NZD is a lot more volatile...
Long term charts, house prices have been in an uptrend ever since... so however, you look at it, fundamentally and technically it is still in an uptrend...

Yes at the moment there is an uptrend due to speculation and property hype. I believe there will be property crisis in overvalued cities sooner than later. I am one of the big bears for housing markets in Auckland, Sydney and Melbourne etc now. It is time to become fearful not greedy.

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.