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20% deposit needed to buy a house from oct

20% deposit needed to buy a house from oct

Old Nov 7th 2013, 3:55 am
  #76  
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Default Re: 20% deposit needed to buy a house from oct

Stuff reports:
Auckland's prices have risen some 14.5% in the past 12 months.

And, also according to QV, Auckland's less likely to be affected by the recent lending limits applied by the Reserve Bank than other regions.

Auckland values are now 23.7% above the previous peak in 2007. When adjusted for inflation values are up 13% over the past year and are 6.6% above the previous peak.
Ohh...well...the LVR trick isn't working so far!

There is so much pressure on RBNZ now to adjust rates. While CPI remains low of course its folly is that it excludes housing associated costs, the exact thing that is going out of control is being exluded from official inflation measures.
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Old Nov 7th 2013, 4:41 am
  #77  
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Default Re: 20% deposit needed to buy a house from oct

Its only a matter of time before it all comes crashing down!
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Old Nov 9th 2013, 2:55 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by kiwigeordie View Post
Back to topic...


Security? We don't have anyone bombing the public transport system (though I sometimes am tempted myself)

Pete
? There is a system ?

On a serious note

As with Pete we arrived here as travellers with backpacks and nothing else.

Less than 3 years later we have just sold our house for a reasonable profit after renting for the first 20 months.

Getting off the property ladder may not be the best idea we have ever made but we are moving Islands and have little choice, back to being a tenant in the short term but with lending criteria changing and interest rates on the rise now might not be the worst time to reevaluate our situation.

I guess the moral to this is - You never know what the future will bring
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Old Nov 9th 2013, 2:59 pm
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Default Re: 20% deposit needed to buy a house from oct

Also, with our home first time buyers who we thought would be more likely to purchase our home (as we were/did) seemed to vanish of the face of the planet and only investors came to view.

The problem is that now investors will have more power to negotiate as they are not competing with the FTB. Which I do no think is a good thing in the long run.
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Old Nov 9th 2013, 3:15 pm
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Default Re: 20% deposit needed to buy a house from oct

Our friends who have been here for 4 years who were "adamant" that they wouldn't go back to the UK are now beginning to use the phrase "whilst we're still here". I think the reality of house prices and the deposit required to buy them has begun to set in.

We thought they'd be here for life, but hearing that makes me realise its a sinking ship. Auckland needs a wake-up call and it needs to crash and crash big.
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Old Nov 9th 2013, 6:54 pm
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Default Re: 20% deposit needed to buy a house from oct

Hubby summed it all up when we were talking last night. He said " as long as the house prices are too high and the wages are too low, then NZ just isn't for me. "
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Old Nov 9th 2013, 7:56 pm
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Default Re: 20% deposit needed to buy a house from oct

Several of the 'first time' buyer homes that have been on the market here in Cambridge are now listed as rentals. I guess all the investors got a nice leg-up when competition from young families was removed

I heard on the Radio an economist sharing concerns about when the LTV block is removed then house prices may shoot up as a load of buyers come to the market who have been locked out and saving.
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Old Nov 9th 2013, 8:49 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984 View Post
.Auckland needs a wake-up call and it needs to crash and crash big.
Until the Auckland property market ceases to be a safe haven for overseas investors then the crash will never happen. If ( heaven forbid ) the Auckland(NZ) economy falters and property prices drop, who will be there to pick up the bargains? The domino effect of a plummeting Auckland house market would be nasty. The overseas investors will scoop up all the mortgagee sales and we will end up paying rent to absentee landlords. So to summarise; though the Auckland housing market is really bad and won't get any better, it's likely to get worse but hopefully not for ages. I'm now depressed.
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Old Nov 9th 2013, 9:28 pm
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Default Re: 20% deposit needed to buy a house from oct

My husband read the details of a job vacancy that had sparked his interest that was in Redcar, Britain a couple of days ago. Later that same day we watched, 'Location..........presented by Kirsty and Phil. Where was the episode filmed.....Redcar. Cue, 'Twilight Zone' music !

Just for fun I had looked on Rightmove at properties in my guestimation budget in the Redcar districts of Marske, Saltburn on Sands (might not be the correct name but close enough from memory) etc. Where were the properties featured on that episode of, 'Location....', yep, Marske, Saltburn on Sands etc.

It's fate ! However, we're just at the 'only looking' stage atm

Anyway

Last edited by Snap Shot; Nov 9th 2013 at 9:32 pm. Reason: grammar
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Old Nov 9th 2013, 9:34 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by gazmac View Post
? There is a system ?

On a serious note

As with Pete we arrived here as travellers with backpacks and nothing else.

Less than 3 years later we have just sold our house for a reasonable profit after renting for the first 20 months.

Getting off the property ladder may not be the best idea we have ever made but we are moving Islands and have little choice, back to being a tenant in the short term but with lending criteria changing and interest rates on the rise now might not be the worst time to reevaluate our situation.

I guess the moral to this is - You never know what the future will bring
I would have thought that having sold your house (in Auckland ?) at a profit, buying a house outside of Auckland, in your case, Nelson (I'm guessing) would not be such a problem. Especially as there's a job offer that's been accepted i.e. you already know what at least half of your household income will be for your life in Nelson.

Last edited by Snap Shot; Nov 9th 2013 at 9:36 pm.
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Old Nov 9th 2013, 11:17 pm
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984 View Post
Our friends who have been here for 4 years who were "adamant" that they wouldn't go back to the UK are now beginning to use the phrase "whilst we're still here". I think the reality of house prices and the deposit required to buy them has begun to set in.

We thought they'd be here for life, but hearing that makes me realise its a sinking ship. Auckland needs a wake-up call and it needs to crash and crash big.
Also according to the OCED Nz now has the 2nd highest cost of housing in the western world,
2nd only to GREECE, for gods sake(omg)....this article was a recent one from 6th nov.... it used to be that ANYONE working could buy a house.

http://www.scoop.co.nz/stories/PA131...nd-in-oecd.htm
http://www.nzherald.co.nz/business/n...ectid=11152041

According to the akl council under the "unitary plan" that has recently come out, Nz'ers now want to live in apartments,(not) and we are told that homes with sections are so colonial and old-school, the councillors and politicians call the ones who disagree "nimby's" Not-in-my-backyard ers. oh really?

Last edited by shocked kiwi; Nov 10th 2013 at 12:18 am.
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Old Nov 10th 2013, 7:18 am
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by Snap Shot View Post
I would have thought that having sold your house (in Auckland ?) at a profit, buying a house outside of Auckland, in your case, Nelson (I'm guessing) would not be such a problem. Especially as there's a job offer that's been accepted i.e. you already know what at least half of your household income will be for your life in Nelson.
Yes we did sell our house in Pukekohe, Formally Franklin but now classed as Auckland and certainly within commutable distance of the city.

Yes we did make a reasonable Profit - We also had a 95% mortgage so the new Lending criteria will still effect us and make any future decision one that we have to consider carefully.

You may be surprised to know that house prices in Nelson appear to be on par with Pukekohe despite it being classed as Auckland. This may be different if we were looking at somehwere less appealing to the massses but were not so its all relative.

I am the sole breadwinner at present so we do also know what 100% of our income will be. We also hope to have reduced expenses but this may just be wishful thinking.

We also know that we dont want to rush in and buy again without first knowing where in the Neslon area we want to live and secondly we dont know what is going to happen with interest rates and house prices in the coming months.

Better to air on the side of caution I think.
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Old Nov 10th 2013, 7:21 am
  #88  
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Default Re: 20% deposit needed to buy a house from oct

Is there a first time buyers grant in New Zealand? If so how much and who qualifies?
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Old Nov 10th 2013, 10:55 am
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Default Re: 20% deposit needed to buy a house from oct

Originally Posted by davros1984 View Post
Our friends who have been here for 4 years who were "adamant" that they wouldn't go back to the UK are now beginning to use the phrase "whilst we're still here". I think the reality of house prices and the deposit required to buy them has begun to set in.

We thought they'd be here for life, but hearing that makes me realise its a sinking ship. Auckland needs a wake-up call and it needs to crash and crash big.
I don't think a crash is imminent. It is an election year next year and I think the Nats will make a call on the current deposit just prior to the election.

If they don't they wont get re elected as Labour will sell at as an election promise.

By the way not all first home buyers are missing out. A good proportion of them have their parents covering the increase in deposit required.

We have done that in the past for one of our sons previously when the deposit required was 20%.

Last edited by Bellasmum; Nov 10th 2013 at 10:58 am.
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Old Nov 10th 2013, 11:27 am
  #90  
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Smile Re: 20% deposit needed to buy a house from oct

Can't see a big housing play in an election by National, they dabbled in local politics but got hamstrung by NIMBYism in Auckland and Christchurch. There is no big play without pulling the RMA for something better (which is a massive job well beyond the scope of capabilities of the current government before the next election), so supply is just crippled while the OBR is at a 60 year low fueling this above inflation asset bubble.

In that regard New Zealand is not like, for example, Ireland. New Zealand just has a huge amount of hot money without a corresponding building boom and banks that can lean on depositors rather than a guarantee scheme if or when the music stops.
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