Auckland housing market

[smpl]

smpl, why the ASX? blue chip? or spec mining stock?

I don't understand your question.

[voltage]

I don't understand your question.

sorry smpl, reread the thread and the comment should have have been directed to JBmurc who is investing in the ASX to reduce debt.

[JBmurc]

It always amuses me to see that many New Zealanders don't know that there is a difference between 'brought' and 'bought'.

Yes never the best at me english ....have got better over the years ..just never applied myself at school ...think I only got school cert in metal tech ....started work after 6 form ....

.... still haven't done too bad for unqualified investor ...been busy interior painting our debt free central otago lakeside property .... paid for by investment returns

[voltage]

How do young new zealanders get into this market. I have a daughter who rents in mount eden but as you could imagine cannot afford to buy anything there. 2 bedroom units around $700000. So the strategy is to buy something for up to 500000, rent it, pay it off and then use this as a deposit to gain access to a property where she wants to live. So, looking for something that is hands off, as a vehicle that will keep up with capital gain in Auckland. Units in better areas is this where the focus should be?

[winner69]

How do young new zealanders get into this market. I have a daughter who rents in mount eden but as you could imagine cannot afford to buy anything there. 2 bedroom units around $700000. So the strategy is to buy something for up to 500000, rent it, pay it off and then use this as a deposit to gain access to a property where she wants to live. So, looking for something that is hands off, as a vehicle that will keep up with capital gain in Auckland. Units in better areas is this where the focus should be?

Be a good Dad - make up the difference so she can stay in mt eden - even if you become joint owners until she can afford to buy you out

[voltage]

thanks winner69, hope not to go that way, would a unit always be better than an apartment to start with. I feel a unit you have more control over, no body corp etc but lower yield

[trackers]

So far Easy credit has supported many assets globally.

China’s stock market collapse is also causing wealth destruction. Hopefully we will not have another global crisis as a result of easy credit. It is better to have some sort of credit control in some countries to cool off their properly market.

As long as we see easy credit, government bailouts and demand from Chinese investors etc, there will be some support for Auckland housing market. However, those are temporarily solutions taken by global policy markets to prevent another great depression. China has a massive credit bubble. It is actually unsustainable and will eventually burst.

We are seeing end of commodity bubble and they are plummeting now. It will follow over valued property market next. The most dangerous bubbles are housing bubbles fuelled by credit booms. The least troublesome are equity bubbles that do not rely on debt. We are closer to another housing burst in overpriced hot property markets which include Auckland and Sydney. It is time to stay away from over valued assets and it is time to identify undervalued assets globally. This is time is not different. It will come in a different manner. New Zealand had some of the worst collapses such as housing market and stock market crash in 1987.

http://www.nzherald.co.nz/business/n...ectid=11573823

Auckland housing and the Wall Street blockbuster

http://m.nzherald.co.nz/business/new...ectid=11578353

Fran O'Sullivan: Crackdown threat to property boom

http://www.scoop.co.nz/stories/BU1601/S00105/auckland-59-less-affordable-than-rest-of-new

Auckland 59% less affordable than rest of New Zealand

http://www.stuff.co.nz/business/6837...shades-of-1987

The Auckland housing bubble and shades of 1987

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.

I agree with you.

yes there is demand. Demand from migration, and demand from low interest rates and easy credit. But 1 in 3 houses is going for 1mil - That's $50k per annum interest, and if they go up 10%, next year its $55k per annum interest and $60k the year after. That is what, 1.5x the average after tax take home pay?

You can only play pass the parcel for so long among investors before it gets out of reach, and all you need is a couple short interest rate rises and its all over - And lets face it, migrants and first home buyers won't save it, because they can't afford to play - This is now into the range of pure speculators

[Bjauck]

Herald editorial about housing costs in Auckland. Where and when will it all end?
http://www.nzherald.co.nz/business/n...ectid=11627212
Brit settlers used to come here to increase their chances of owning real estate.

[NeverQuestion]

I see Graheme Wheeler is pleased with his LVR restrictions

"The existing loan-to-valuation ratio (LVR) restrictions “have substantially reduced the proportion of risky housing loans on bank balance sheets,” the central bank says."

He and his cronies must be sitting back and poping the champagne on what to them seems like a successful stratergy.. But what he has effectively done is make it that much harder for those who depend on the 10% loan deposit to make it into their first home..

Easy if your parents have a bit of cash saved up or locked away in a property... but if you happen to not be so privliaged then the goal is more unobtainable than ever.. with the introduction of the LVRs there was an addition of a hard limit of how many Home loans banks can issued to the public at 10% deposit.. so if your lucky enough to find that property and have the deposit for only 10%... you now have have a bit of a fight on your hands to secure the loan to make that happen... Lets knock out the bottom level of the property market! What a great idea!!!

It is the opinion of this citizen that we need to put a stop to massive investment in housing if your so worried about this sector! Not to allow people to continue to buy more and more investment properties and with less competition now you have effectively elminated first home buyers!

Source : http://www.nbr.co.nz/article/reserve...ased-jr-188812

[macduffy]

Isn't it curious that the govt won't take a first step by following Australia in restricting non-resident property investors to new developments? It hasn't been a "silver bullet" for Oz but it should give supply a boost and stop overseas investors from helping to inflate existing house prices. Naturally, real estate agents, mortgage loan brokers, property investors' organisations and property management companies will tell us that it wouldn't work, but the problem needs a multi-faceted approach if first home buyers are to have a chance of ever owning their own homes.