passthevalium

We came here 2 years ago and sold our UK house at a loss. We basically lost £50,000 of our built up equity. Thankfully we had a house in France that we were able to sell to pay a deposit in NZ, as we owned it outright. But even that had to be sold at half of what it had been worth only 2 years before.
So my question to all you expats that have been in NZ a while, have any of you had a drop in the value of your homes in the time you have been here?

I was wondering if the housing bubble that burst in Europe has happened over here?

simonsi

These bubbles are a cycle as anyone with equity in the UK housing market in 1991 will testify.

Bottom of the last cycle in NZ seemed to occur around January 2011, prices and volumes have been rising gradually since then. When the top of the new bubble will occur is anyone's guess.

We bought in NZ in Feb 2011 so, no - haven't lost out yet...

Genesis

Bought our home in 2005 for $440k. It is now allegedly worth $580k (which I doubt somehow). However we have overcapitalised on the house (euro CH, high end double glazing, a big conservatory) so I reckon if we got $550k we would just about break even. I know people who have done way better than this kind of 'growth' in this price bracket.

sirplug

No. Bought it cheap and had it valued last month. So far, $100k up on the buy price. Houses where we are seem to be selling quickly and for a lot more than CV

Charismatic

To be more exact there has been a 6.4% property price increase on 2.4% wage growth. The New Zealand Reserve Bank have forecast 6%+ this year also.

We are well above peak levels in 2007 levels on prices and almost there on lending ratios. Still you'll never lose on houses will you?

Boopy

We bought in 2006 & the RV for ours dropped $20,000 in 2011. Apparently most homes under Porirua City Council were dropped, yet the rates were still increased!

janeyk

yes by the time you pay the real estate agent nothing left! our fault for buying a plaster home!

Bo-Jangles

Although there's lots of talk about mental price increases in Auckland housing market recently, we've definitely not benefitted in any way, shape or form.


Similar story to to Boopy here, we bought in 2006 and the latest CV for this past year's rates valuation showed $20k reduction on the price we paid. Although we do hear tales of people selling way above the RV and many more places not selling at all lately, so I have no idea really and just glad to have stayed within the same ball park.

Boopy

I hadn't realised Auckland was the same

Persephone

Judging by the asking prices for houses in the same area as ours then I would very much doubt it, the prices are quite a lot more than we paid for ours in early 2010.

We're not planning on selling in the near future so I'm not that bothered what it is worth at this particular moment in time, it may bear no relation to what we get for it if/when we sell it- the market will increase and decrease over time anyway

RobClubley

We've gained $60k on what we spent seven years ago but we've spent about $90k on the house installing decent heating, insulation, double glazing, new kitchen and bathroom etc.