House Prices

[tweak'e]

If talking about your own family residence the increased value of it is not revelent as assuming you have to have somewhere to live you will be buying and selling in the same market. There is no real profit in that.

sort of true. catch is you often don't buy in the same market, like heuybot3000 originally bought in a cheaper market than when he sold later on, and had a rather nice gain on that.
which is exactly what kiwis do. play the market so you can buy cheap and sell later at higher price. ie "climb the ladder" if price is not high enough you can simply sit and wait which influences the market in your favor.
moms/dads own home is the single biggest "investor" in real estate by a massive margin.

[CliveM]

sort of true. catch is you often don't buy in the same market, like heuybot3000 originally bought in a cheaper market than when he sold later on, and had a rather nice gain on that.
which is exactly what kiwis do. play the market so you can buy cheap and sell later at higher price. ie "climb the ladder" if price is not high enough you can simply sit and wait which influences the market in your favor.
moms/dads own home is the single biggest "investor" in real estate by a massive margin.

Yes your theory would work out just fine if you sell when the market is high and wait until it is lower to buy your next home but where do you live in the meantime? At the risk of being repetitive if you buy and sell in the same market there is no profit!

[gary67]

You built a tiny house right? Where you moving to now?

Yes I did lived in that for 2 years on this property while building a smart and comfortable 2 bed home. Then on sold the tiny home. We will be moving into a caravan if this does sell for what we require, the plan is to travel and wait for the market to settle down.

[tweak'e]

Yes your theory would work out just fine if you sell when the market is high and wait until it is lower to buy your next home but where do you live in the meantime? At the risk of being repetitive if you buy and sell in the same market there is no profit!

thats why i said "sort of true".
while your buying the next house in the same market you have already made the profit off the last one. plus you get to sit in the new house and wait for prices to go up again.
thats exactly what happens. buy a whatever price, sit and wait until price goes up enough then you sell. hence "climb the ladder" without having to spend income to do so.

but that only works to a point. once you have exhausted the income of the future generations to pay for it, it all fails.
govt is panicking at the moment because new buyers can't buy the overpriced homes which they need to keep the ponzi scheme going.

just to pick on huey again (sorry) his first house goes from 400k to 700k, next person may be 700 to 900k. for his kids or grandkids its going to cost them 1 million for them to buy his old first home as their first home.
so in effect its his kids/grandkids paying for his (and others) gain on that house, hence todays lifestyle being paid for by the next generations.

[piroska]

buy a whatever price, sit and wait until price goes up enough then you sell. hence "climb the ladder" without having to spend income to do so.
.

Haha. We moved a few times.
Every time we did, prices were down when we sold. Then we had to pay more next time....repeat.

We should have one of those TV Programs: How TO Buy And Sell And Loose Money.

If we'd still owned the first one, well it was over /14 acre, in Auckland, still is, the last 2 owners did nothing except let it deteriorate.
Imagine the price now...and the developers that would buy it

[tweak'e]

Haha. We moved a few times.
Every time we did, prices were down when we sold. Then we had to pay more next time....repeat.

We should have one of those TV Programs: How TO Buy And Sell And Loose Money.

If we'd still owned the first one, well it was over /14 acre, in Auckland, still is, the last 2 owners did nothing except let it deteriorate.
Imagine the price now...and the developers that would buy it

those who have to sell for whatever reason are often the losers in the deal.
jobs go, family reasons etc. otherwise if you can sit and wait out the rough times then you can cash in on the good times.
the problem now will be that when things slow down, those who have bought at horrific high prices will have to sit for a very long time and actually have to work to pay off those expensive homes.
those that get forced to sell will end up with huge debts to pay.

[hueybot3000]

just to pick on huey again (sorry) his first house goes from 400k to 700k, next person may be 700 to 900k. for his kids or grandkids its going to cost them 1 million for them to buy his old first home as their first home.
so in effect its his kids/grandkids paying for his (and others) gain on that house, hence todays lifestyle being paid for by the next generations.

100%. Our decision to sell/build wasn't really based on any specific market behavior. We just needed a bigger house to live the lifestyle we want and we spent 5 years saving for this next step.

Its definitely going to be hard for the next generation. I think we'll see more parents gifting their equity to their kids. We already have investments set up for our kids which will hopefully count for something when they need it in 20 years.

I'd also like to see our education system puts more emphasis on financial skills as well. So many of our friends and family haven't got a clue so there is no hope for their kids unless the education system picks up the slack.

[decibel]

...Its definitely going to be hard for the next generation. ..

Unless there is a massive crash and there will be unless the government does something to dampen this whole crazy market down.
However, as none of them have, nor have they shown any inclination too, we have a disaster looming and the biggest losers will be people who have just bought their first home.

[tweak'e]

100%. Our decision to sell/build wasn't really based on any specific market behavior. We just needed a bigger house to live the lifestyle we want and we spent 5 years saving for this next step.

Its definitely going to be hard for the next generation. I think we'll see more parents gifting their equity to their kids. We already have investments set up for our kids which will hopefully count for something when they need it in 20 years.

I'd also like to see our education system puts more emphasis on financial skills as well. So many of our friends and family haven't got a clue so there is no hope for their kids unless the education system picks up the slack.

i'm not complaining about anyone, whats done is done. i'm more interested in how do we stop this problem from happening again.
i highly agree about schools and financial skills. in a lot of homes finance is not talked about at all. same issue with swimming lessons.

[tweak'e]

Unless there is a massive crash and there will be unless the government does something to dampen this whole crazy market down.
However, as none of them have, nor have they shown any inclination too, we have a disaster looming and the biggest losers will be people who have just bought their first home.

no govt will fix it while kiwis are riding the gravy train. any govt that attempts it to fix it properly will get booted out.
odds are its going to take it crashing and burning before kiwis will let go of real estate, allow it to be fixed and adopt a culture change.

one of the catches is that people are relying on good sale price to fund new home build, and its the new home builds that are needed to ease housing demand.
if they can't sell their home for enough then they will sit and wait, not build a new house, until demand pushes prices back up.
fun times ahead.