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20% deposit needed to buy a house from oct

20% deposit needed to buy a house from oct

Old Jan 16th 2014, 9:43 am
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This all seem a bit of a no brainer really. If you have a house in NZ with good equity sell up and get out and take the profits with you as eventually the housing market will crash and all thosed potential profits will disappear.

If you are going to NZ don't buy yet and wait for the crash.

To be paying anything near what is being asked for on the types of houses that NZ has to offer is crazy, crazy, crazy. NZ sure ain't worth getting into huge debt over. I found that out a few years ago.

sorry for the awful grammar by the way

Last edited by BEVS; Jan 16th 2014 at 9:56 am.
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Old Jan 16th 2014, 10:11 am
  #152  
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Default Re: 20% deposit needed to buy a house from oct

Thank you so much for joining just to do the scaremongering thing ajwuk in France.

I am losing patience with those that do not live here and seek to dump on all others.

The last post is an example of that. Horrible.

'Just saying ' ...... as the modern saying goes.
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Old Jan 16th 2014, 10:19 am
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Default Re: 20% deposit needed to buy a house from oct

Look !

There is no cheap NZ anymore. I do realise that this can still be a myth out there in the wide world. It is not so.

However, if the dominoes stack up right it can still be a great place for some families, young people, retirees.

Sizable savings Family. Equity. Jobs that pay good $$. Location . All this make it possible.

It doesn't always stack up but sometimes, often, it can.

Also if you come with nothing then you can only build.

So.

Don't join BE like that just so you can post to dump on others hopes . That is not on.
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Old Jan 16th 2014, 11:11 am
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Default Re: 20% deposit needed to buy a house from oct

sorry I wasn't trying to dump on the hopes of others but to me it just seems plain common sense. NZ houses are incredibly overpriced. We had a house in NZ for a number of years and decided that what with the cost of living and low wages we could not think of a better time to sell up and move on to a more affordable country. The house we have here in France which we got for the equivalent of $700 would have cost about $2 million plus in NZ and on top of that we are back around friends and family.
Sure there's plenty of crap here what with French administration and all that but for us it was the right move. I'm not saying don't go to NZ but rather be patient and wait to buy.
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Old Jan 16th 2014, 12:39 pm
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Default Re: 20% deposit needed to buy a house from oct

NZ & Aus house prices are expensive but there is no bubble in both countries and nothing is crashing any time soon. Sure prices go up then come off the boil a little, but stasticaly it's only going in one direction and that's up.
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Old Jan 16th 2014, 1:07 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by BradClark View Post
NZ & Aus house prices are expensive but there is no bubble in both countries and nothing is crashing any time soon. Sure prices go up then come off the boil a little, but stasticaly it's only going in one direction and that's up.
How can you know? There are some influential voices that would say that there is a housing bubble in NZ. NZ housing is expensive compared to NZ incomes and the house price rent ratio is out of balance. Doesn't mean that there is a bubble which will burst but it is risky to buy in NZ at the moment. Nothing is guaranteed.
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Old Jan 16th 2014, 1:08 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by BradClark View Post
NZ & Aus house prices are expensive but there is no bubble in both countries...

In the case of New Zealand, Nouriel Roubini and the Governor of the Reserve Bank of New Zealand, amongst others, would like to have a quiet word with you.

"Our concern is that excessive increases in house prices in parts of the country, if unchecked, pose increasing risk for the financial system and the broader economy

Reserve Bank Governor Graeme Wheeler also thinks New Zealand house prices are a danger to our economy, hence October's loan to value ratio introduction to cool mortgage lending.

Wheeler has noted that over the past 25 years, many wealthy countries have experienced periods of substantial decline in house prices.

"In the United States, real net household wealth for the median household fell 39 per cent from 2007 to 2010, and a quarter of America's mortgage holders owed more on their houses than what their houses were worth," Wheeler wrote on the bank's website.

"Our concern is that excessive increases in house prices in parts of the country, if unchecked, pose increasing risk for the financial system and the broader economy," he wrote.

"New Zealand's house prices are expensive, based on international comparisons of house prices relative to rents and to levels of household income. And our household debt levels relative to disposable income having doubled over the past two decades are also very high," he wrote.
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Old Jan 16th 2014, 6:50 pm
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Default Re: 20% deposit needed to buy a house from oct

As they say, in certain areas house prices are steep, perhaps the 20% should just apply in
in those areas and not affect the rest of the country. Unfortunate for those having to live in those areas but could help those that are prepared to travel.
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Old Jan 16th 2014, 8:22 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by Purrball View Post
In the case of New Zealand, Nouriel Roubini and the Governor of the Reserve Bank of New Zealand, amongst others, would like to have a quiet word with you.

"Our concern is that excessive increases in house prices in parts of the country, if unchecked, pose increasing risk for the financial system and the broader economy

Reserve Bank Governor Graeme Wheeler also thinks New Zealand house prices are a danger to our economy, hence October's loan to value ratio introduction to cool mortgage lending.

Wheeler has noted that over the past 25 years, many wealthy countries have experienced periods of substantial decline in house prices.

"In the United States, real net household wealth for the median household fell 39 per cent from 2007 to 2010, and a quarter of America's mortgage holders owed more on their houses than what their houses were worth," Wheeler wrote on the bank's website.

"Our concern is that excessive increases in house prices in parts of the country, if unchecked, pose increasing risk for the financial system and the broader economy," he wrote.

"New Zealand's house prices are expensive, based on international comparisons of house prices relative to rents and to levels of household income. And our household debt levels relative to disposable income having doubled over the past two decades are also very high," he wrote.
So nothing to do with the US mortgage crisis - aka banks allowing any tom richard or harry to borrow up to 115% on a house? Removing financial checks, removing credit history etc.

I'd love to sit down and discuss world economics with these experts
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Old Jan 16th 2014, 8:54 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by DennisBergkamp View Post
Section prices in Welly not so cheap though. My partner and I cant make a 20% deposit. Could maybe hit 10%.

But max budget would be in the 300k area

Building a house seems quite daunting. But if i can get a house built for 200k and a decent section for 100k could be doable.
If your going through a construction loan or buying section then house build - you'll only need a 10% deposit

I believe Stonewood and Jennian give you ideas on the sort of costs to build your own place. They split their houses into quantities

Are there any new towns or new build areas happening in Wellington?
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Old Jan 17th 2014, 12:02 am
  #161  
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by BEVS View Post
Thank you so much for joining just to do the scaremongering thing ajwuk in France.

I am losing patience with those that do not live here and seek to dump on all others.

The last post is an example of that. Horrible.

'Just saying ' ...... as the modern saying goes.
Bevs, U Go Girl!!
Completely Agree With You 100%
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Old Jan 17th 2014, 12:54 am
  #162  
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Default Re: 20% deposit needed to buy a house from oct

I would argue that there is some logic in what ajwuk has said.

If I was a house owner here and I've suddenly made 700,000 - 1MIL+ NZD as quite a few people have, I'd sell up and move somewhere cheaper. I also agree that houses in Auckland are vastly overpriced, especially for what they are (but I realise of course its more about the value of the land).

With that sort of cash you'd never have to work that hard again.
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Old Jan 17th 2014, 2:53 am
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Default Re: 20% deposit needed to buy a house from oct

Just read on the grapevine that is Twitter* that someone has put down a $20k bond to rent a flat in Ponsonby ....


*so might be bs, but tweeted by someone who is usually right about such things.
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Old Jan 17th 2014, 7:38 am
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by pippalonghorn View Post
We did a hell of a lot of research. The houses we looked at on the Internet looked in our price range before we came. It fails to state on the Internet that most of them were lease hold. This is not advertised for some strange reason. we have been to open homes where the lease has been discussed very quietly and the agent has not been able to give a lease charge. very worrying.

My family is better off in the UK. Some families are better off here. We all have our own stories and I think it is important that both sides are spoken about. Davros listens to other opinions and answers accordingly. If I had seen this site before moving here it would have given me a more balanced idea of NZ. NZ has a fantastic marketing stratagy which is not 100% true. And it doesn't help when Philip Spencer adds to it all.

I have found out through living here that this is a remote island who does not like outside competition. It prefers to be isolated. If your isolated then no one gets to know all of your problems. You can have a perfect image. But no country is perfect. Unfortunately I'm a tall poppy and don't fit in.
Agree

I looked at the homes and we were all but set to buy, then came the announcement of the deposit increase.

It's very fortunate that they allowed new builds hence the construction loan, otherwise we were potentially looking at either 6 years renting in Rangiora or somewhere, or heading back to Blighty.

Dennis Bergkamp (great footballer), I forgot to mention to you that with the loan, your interest will be a wee bit more expensive. Banks that offer the construction style loans usually do it for around 0.2%. Westpac and ASB I know do this, as do kiwi bank (that's who we're applying with). Luckily the company and adviser we've applied through will avoid the extra added interest .
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Old Jan 17th 2014, 9:04 am
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by TommyLuck View Post
Just read on the grapevine that is Twitter* that someone has put down a $20k bond to rent a flat in Ponsonby ....
*so might be bs, but tweeted by someone who is usually right about such things.
any chance you can find out who, so we can all point and laugh?

Tom1983, i am pleased for you pal. i know its been a stretch, but youve stuck to it and found a way around the madness. Its crazy that its come to it, but its really exciting that you are getting a brand new house of your own. All the best.
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