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Thread: Property in NZ

  1. #31
    Wrinkly Member! B.M.'s Avatar
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    Default Re: Property in NZ

    A lot of what is happening has all happened before.



    History is a good teacher, and some of us can remember the 1980’s when the Banks hiked their Home Loan interest rates to 20% and thousands of people lost everything.


    Once again, I suggest you download a Amortization Spreadsheet and check how you would fare if the interest rates doubled or tripled.


    A bit of history for your consideration.

    Click image for larger version. 

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    Global Warming is Mann made.
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    The government cannot give to anybody anything that the government does not first take from somebody else.

  2. #32
    Senior Member piroska's Avatar
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    Default Re: Property in NZ

    Ah yes, the 80s, we got our first house then.
    Husband worked mostly, I did a bit, but part time. we managed, but then we didn't have other debt.
    Ex-pctek

  3. #33
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    Default Re: Property in NZ

    Quote Originally Posted by B.M. View Post
    A lot of what is happening has all happened before.



    History is a good teacher, and some of us can remember the 1980’s when the Banks hiked their Home Loan interest rates to 20% and thousands of people lost everything.


    Once again, I suggest you download a Amortization Spreadsheet and check how you would fare if the interest rates doubled or tripled.


    A bit of history for your consideration.

    Click image for larger version. 

Name:	Interest Rates.png 
Views:	24 
Size:	36.1 KB 
ID:	10554
    Yup. I downloaded a spreadsheet. For the first year; $9k in principal but $44k in interests. At a 6% interest rate for 30yrs say a $750k loan. Interest rate won't be low forever.

    I had a play on the IRD Tax Calculator and the Westpac mortgage tools online just b/c they used to do a lot of house shows on TV sponsorship so I thought they would have some stuff on their website. No matter how you slice it and where you got the deposit or if you got a gaurantor etc. To manage the mortgage you basically need $900-1,000 that is passed to the bank every week for the next 30yrs. If one gets a townhouse instead which may be a $700k or $650k Kiwibuild haha that still requires $700 every week - that is a $550k loan.
    Last edited by Nomad; 27-10-2020 at 06:47 PM.

  4. #34
    Wrinkly Member! B.M.'s Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by Nomad View Post
    Yup. I downloaded a spreadsheet. For the first year; $9k in principal but $44k in interests. At a 6% interest rate for 30yrs say a $750k loan. Interest rate won't be low forever.

    I had a play on the IRD Tax Calculator and the Westpac mortgage tools online just b/c they used to do a lot of house shows on TV sponsorship so I thought they would have some stuff on their website. No matter how you slice it and where you got the deposit or if you got a gaurantor etc. To manage the mortgage you basically need $900-1,000 that is passed to the bank every week for the next 30yrs. If one gets a townhouse instead which may be a $700k or $650k Kiwibuild haha that still requires $700 every week - that is a $550k loan.
    You are onto it Nomad.

    Don’t forget the weekly costs of Rates – Insurance – Maintenance along with the consequences of any missed payment.

    Bottom line is the cost of housing in NZ is prohibitive and way out of line with income.
    Global Warming is Mann made.
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    The government cannot give to anybody anything that the government does not first take from somebody else.

  5. #35
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    Default Re: Property in NZ

    Quote Originally Posted by B.M. View Post
    Don’t forget the weekly costs of Rates – Insurance – Maintenance along with the consequences of any missed payment.

    Bottom line is the cost of housing in NZ is prohibitive and way out of line with income.

    In Wellington that is about $5k PA if nothing breaks or leaks. Insurance and rates.

    I was out of curiosity looked at CBD apartments even 1 bedrooms and just the body corp could be $5,000 PA but a 65sqm apartment is like $450k. There are many places for rent, sometimes the same apartments 1 is for purchase and another is for rent. $450k ok .. or $450/week for rent I suppose if you minus the body corp it's $350/week minus the tax say 33% for those landlords perhaps $200-250/week to him or her. Which is about $12k PA.

    I could be totally wrong but if they are so out of scope with NZ income how far can houses go up by. Are pple gonna work 7 days? Are kiwis gonna live together like multi generation households and all of them pool their money together and keep pumping up the property market? Then again who are gonna rent them anyway hahah are they gonna open the floodgate of immigration and when migrants cannot afford those rental rates, overseas migrants will migrate over and rent houses with multiple families inside them? ��*♂️ Or is it in fact NZ salary will same the same climbs as we saw in the 1970s and 1980s. Will NZ salaries increase 10 or 20 folds to keep up with the rise in house prices?
    Last edited by Nomad; 28-10-2020 at 09:47 AM.

  6. #36
    Senior Member 1101's Avatar
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    Default Re: Property in NZ

    "Are pple gonna work 7 days?"
    allready happening for some. The 40 hour week is long gone . 6 day working week is common.

    "and rent houses with multiple families inside them?"
    allready happening . been like that for a while. Whole families living in the garage . Houses with every bedroom split in 2 & lounge made into 2 bedrooms

    Houses wont drop in price by much. Never going to happen .
    No one is going to sell for less they they paid , unless they can no longer afford the mortgage payments .
    So prices will keep going up . The people who need homes wont be able to afford them, it will be investors buying most of the homes .

    rent $500 - $600+ a week. How is that sustainable for a young family ?.
    Something is very wrong when a working family relies on govt handouts to help pay rent

    Instead of making it easier for landlords to rent , make it harder .
    Because better to have families living in a car than to have a uninsulated house for rent .
    Better to make it harder to get rid of bad tenants & then have investors leaving houses empty .
    Last edited by 1101; 28-10-2020 at 10:31 AM.

  7. #37
    Computer Technician wainuitech's Avatar
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    Default Re: Property in NZ

    Better to make it harder to get rid of bad tenants & then have investors leaving houses empty .
    That should be make it easier to get rid of bad Tenants. The Tenants don't own the house someone else does.

    I know of a case where the house owner is selling the house, and a family wants to buy it, most of the paperwork is done.

    The current tenant who is renting refuses to leave the place, hes been given all the required notices, and was actually given the offer first to buy it, he declined. Now things are at a stale mate with the red tape, the house sale cant go through and the family who want to buy it cant do anything due to this person refusing to move out.

    The amount of hoops and processes they have to go through to get him out is bloody ludicrous.

  8. #38
    Wrinkly Member! B.M.'s Avatar
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    Default Re: Property in NZ

    The answer to the problem is very simple.

    Introduce a Capital Gains Tax, like our cousins across the ditch, and watch the problem disappear.
    Global Warming is Mann made.
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    The government cannot give to anybody anything that the government does not first take from somebody else.

  9. #39
    Senior Member 1101's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by B.M. View Post
    The answer to the problem is very simple.

    Introduce a Capital Gains Tax, like our cousins across the ditch, and watch the problem disappear.
    Im all for a CGTax on 2nd homes or houses you dont live in, as the ONLY reason they are bought is to make a profit .
    I dont think CGTax will solve any issues though . If you can make $100K++ in a year , a tax wont put you off .

    In theory selling of investment houses was allways taxable , the IRD just dont often tax it as income/profit .

  10. #40
    Wrinkly Member! B.M.'s Avatar
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    Default Re: Property in NZ

    Ok, to give you a look at the difference in price between Aus and NZ take a look at THIS site.

    Rattle around between their Rental – Buy – Sold pages not forgetting to use the side arrows to see the internal photos.

    The place is Hervey Bay and similar to Mount Maunganui but far more appealing in every respect.
    Global Warming is Mann made.
    .
    .
    The government cannot give to anybody anything that the government does not first take from somebody else.

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