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  1. #1
    Wanderer
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    Default Property in NZ

    I am not so much a property type person myself. To me it is a more functional use. Do NZders mainly go for a house because they want appreciation? I question this because if many of them ever only have 1, they could downsize but they lose out b/c the houses down the ladder cost proportionally more for the same size, but they also can't just sell it because they have to live somewhere. Maybe pass it down as a inheritance?

    They gone thru Kiwibuild etc but those are like $500k for a 1 room apartment haha. So I was thinking what about homes via government leasehold, indexed to inflation? Given the horror stories we have heard about leasehold that can skyrocket up. So it meets the purpose of you live in it, when you are done flick it off. You could still sell it should circumstances change. Something like a 99yr lease right of use from new and then it goes from there ....

    Thoughts?

  2. #2
    Computer Technician wainuitech's Avatar
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    Default Re: Property in NZ

    Well for us buying a house years ago is paying off big time. With the ever increasing prices for rentals, our weekly payments for whats left of the mortgage is peanuts. Also at the end of the day if you buy, then you have a Asset that you can sell later on, where as renting you basically only have your personal possessions that you own.

    Where we live, some people have sold their houses, usually to developers, the house has been removed and now sits three houses instead of the previous one.

  3. #3
    tweakedgeek tweak'e's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by Nomad View Post
    ......... Do NZders mainly go for a house because they want appreciation? ......................
    Thoughts?
    kiwis want houses because its somewhere to live and it earns them money.
    kiwis average length of home ownership is half that of usa.
    homes are an investment and basically tax free (tho i think there is tax if you sell within 5 years or something).

    its invest in your home, climb the ladder to bigger more expensive home, then downsize and live off the proceeds. we have plenty of retirees here who have done exactly that.
    sold the big auckland house and bought a small cheap place out in the small towns/beach.

    of course having the ability to sit and wait until house prices goes up also has the effect of increasing demand.
    coupled with high subdivision and land costs which slows down new builds and further increases demand, until house prices increase enough that people can sell their old house to pay for the new house.
    unfortunately all of this cost eventually gets dumped on new home buyers which is unsustainable.
    Tweak it till it breaks

  4. #4
    Senior Member piroska's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by Nomad View Post
    I Do NZders mainly go for a house because they want appreciation?

    It seems to be a mentality. Whenever we were buying REAs raved on about the "investment" potential, so did a lot of people around us.
    But most I know buy because it's cheaper than rent, your mortgage eventually ends, rent doesn't and you can change it however you like.

    Quote Originally Posted by tweak'e View Post
    homes are an investment
    plenty of retirees here who have done exactly that.
    sold the big auckland house and bought a small cheap place out in the small towns/beach.
    .

    Sigh. Yeah sure.
    It's a perception that you own in Auckland, you'll sell for millions, buy a mansion elsewhere and have change.
    I can tell you it is false. Even if I had sold for market value which was $560,000 at the time.

    Auckland has a lot of cheap places, it's not all Takapuna, Remuera and mansions, or mad sale prices cause of being a lot of land..........

    Someone I know sold his old dated needed work place on 1/2 acre early in the year, had a hell of a job selling it, it took ages, failed 2 auctions.
    Because of location for one...

    If my mum sold, where could she buy? Not here, even if it was a smaller place, being in the **** suburb...I guess she could buy again in the **** suburb but whats the point? Something worse? And then it would cost, REA fees, lawyer fees, move costs.
    Ex-pctek

  5. #5
    tweakedgeek tweak'e's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by piroska View Post

    Sigh. Yeah sure.
    It's a perception that you own in Auckland, you'll sell for millions, buy a mansion elsewhere and have change.
    I can tell you it is false. Even if I had sold for market value which was $560,000 at the time.
    i didn't say that.
    i said buy a cheap place, not a mansion. eg sell the big home wherever for $500k and buy a small one for $200k. assuming mortgage is paid off its $300k in the bank. thats the whole point of ladder climbing, use the markets to go up then cash out.

    however as age of first home ownership is now 40+ (was 40 a few years back i think its now 45) you simply start running out of lifespan to be able to climb the ladder. so for many of us we can't sell and downsize because we are still in our cheap small homes. this housing crisis is going to have very long social ramifications.


    Quote Originally Posted by kenj View Post
    We looked at downsizing in the last year but to get something decent the cost was horrendous. Probably caused by a lot of us old farts thinking of doing the same thing. Our house, 27 years old, would sell for between $800,000 - $850,000 according to a friend in the real estate business and even though she would do a good deal on the commission, to buy a near new small place would eat up a large proportion of that. Not interested in a retirement village at all.
    i think your looking in the wrong place and also going to a new build. keep in mind your price is not even average auckland price.
    plenty of towns around that are still $300k or even less.
    however life is more than just about a house, live where it suits you.

    as i mention plenty here who sold in the city and moved here and bought $200k homes.
    Tweak it till it breaks

  6. #6
    Retired old codger kenj's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by tweak'e View Post
    i think your looking in the wrong place and also going to a new build. keep in mind your price is not even average auckland price.
    plenty of towns around that are still $300k or even less.
    however life is more than just about a house, live where it suits you.

    as i mention plenty here who sold in the city and moved here and bought $200k homes.
    Why would I want to move away from Napier after being here totally 55 years? We couldn't wait to get back here in 1970. Best area to live in NZ in both our opinion. We can afford to maintain our home, that's not a problem, low maintenance build to start with. We are past going on big overseas trips, just to Oz to see our daughter every couple of years. So don't need much.

    Also we have a family room where SWMBO watches her TV rubbish while I watch my rubbish in the lounge. Brother in law has never been happy since they sold their big home and moved into a village in Tauranga. Moans all the time about having to watch what my sister wants to watch! When he tries to assert his "Master Of The House" act, she kicks his walking stick away from him. That shuts him up

    Ken
    Corgi Ben Kenobi.......Related by Corgi to the Queen

  7. #7
    tweakedgeek tweak'e's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by kenj View Post
    Why would I want to move away from Napier after being here totally 55 years? We couldn't wait to get back here in 1970. Best area to live in NZ in both our opinion. We can afford to maintain our home, that's not a problem, low maintenance build to start with. We are past going on big overseas trips, just to Oz to see our daughter every couple of years. So don't need much.

    Also we have a family room where SWMBO watches her TV rubbish while I watch my rubbish in the lounge. Brother in law has never been happy since they sold their big home and moved into a village in Tauranga. Moans all the time about having to watch what my sister wants to watch! When he tries to assert his "Master Of The House" act, she kicks his walking stick away from him. That shuts him up

    Ken
    thats awesome. i wish many more people would/could do that.
    but for many their house is their retirement fund. for others its their tax free income.
    i wish people would stop using homes as a source of income and simply use their house for living in like you have done.
    Tweak it till it breaks

  8. #8
    Senior Member piroska's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by tweak'e View Post
    eg sell the big home wherever for $500k and buy a small one for $200k.
    .

    I moved out of Auckland Twice.
    I moved back too.

    It doesn't work unless as you say, you have NO mortgage or you move to some nowhere cheap as dirt place.
    These are now scarce. Even the West Coast is going up.

    Now my mum could potentially get $400,000 for this place. Where can she go? Remembering to deduct fees and move costs....
    A unit in Napier? Nope, that was half the point of me coming here, my brother gets this place, how can he afford to live on his own? He can't.
    Sell it and......not in Napier, i looked.

    Anyway even if he did find some unit somewhere obscure, rates, power, food, insurance, all that, he couldn't do it on his benefit. Leaves him short.
    Oh yes, he needs a flatmate!!
    Ex-pctek

  9. #9
    tweakedgeek tweak'e's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by piroska View Post
    I
    It doesn't work unless as you say, you have NO mortgage or you move to some nowhere cheap as dirt place.
    These are now scarce. Even the West Coast is going up.

    Now my mum could potentially get $400,000 for this place. Where can she go? Remembering to deduct fees and move costs....
    A unit in Napier? Nope, that was half the point of me coming here, my brother gets this place, how can he afford to live on his own? He can't.
    Sell it and......not in Napier, i looked.

    Anyway even if he did find some unit somewhere obscure, rates, power, food, insurance, all that, he couldn't do it on his benefit. Leaves him short.
    Oh yes, he needs a flatmate!!
    exactly.

    you have to move out to a cheaper area.
    it also only works if you have actually invested in your home and climbed the ladder profiting off every rung. but of course many of us cannot do that, especially those who started late or started with a very high price. or those who have to move for other reasons and take a loss.

    what i'm saying is the effect of so many people using their homes to make money adds to the price of homes.
    doesn't help when councils add huge costs to new builds which means people sit on their homes for longer until the price goes up before they build new. pushing house prices up means even more people jump on the wagon to make money from homes.
    Tweak it till it breaks

  10. #10
    Senior Member piroska's Avatar
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    Default Re: Property in NZ

    Quote Originally Posted by tweak'e View Post
    exactly.

    what i'm saying is the effect of so many people using their homes to make money adds to the price of homes.
    doesn't help when councils add huge costs to new builds

    Totally agree with that.
    I hate that term "Property ladder". What was wrong with "home"? Used to be once, now it seems you're a loser unless you do the buy and flick
    Ex-pctek

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