Property costs in NZ - the heart of evil

[BMWST?]

Agreed, what about timber supply to our own domestic market? Theres a fair bit of dodgy stuff happening there too from what I have heard.

you would probably be surprised at what a prenail plant has to pay for 90x45

[BMWST?]

I just wonder where it's going to end.

We've now taken our place in Tokoroa off the market,who might of bought it can now not afford the deposit.

The place up here that we had our eye on,we can now not afford the deposit on.

So we take our place off market and another place for young starters and their families is taken out of the loop.

Why does our gov't hate people so much ?

Fuck me they used to be people themselves.

i dont understand why they have done this....isnt it going to make the demand even worse....the few houses that are affordable will be under immense demand...prices will go up

[Ocean1]

I subsequently found out that they were selling NZ gib in the Islands for less than here in NZ (after paying to ship it there). Then there was the market dumping Fletchers carried out in Oz as part of their successful strategy to intimidate CSR into abandoning their product expansion plans for NZ.

I was never inside the industry to see the details, didn't need to be, I just saw them selling NZ Gib in Perth 25% lower than NZ prices.

I hope they get busted into pieces.

Well, according to antitrust precedent centuries old that's exactly what should happen, monopolies are forced to sell strategically important business. Important to maintain a competitive free market, that is, as defined by the commission.

And I'd dearly love to see that happen, but it won't.

Agreed, what about timber supply to our own domestic market? Theres a fair bit of dodgy stuff happening there too from what I have heard.

I dare say you're right. Again, to check for price gouging ignore the inside data and go straight to the market prices. In the case of building timber, though I doubt there's an off-shore comparable product, our treatment standards are probably unique. You should be able to break the cost-to-market down, though, and any part of the manufacturing or logistics process that isn't exposed to competition, (often through standards compliance requirements defined by the monopoly holder in the first place) will certainly be where the extra costs will be claimed to have been accrued.

[mossy1200]

i dont understand why they have done this....isnt it going to make the demand even worse....the few houses that are affordable will be under immense demand...prices will go up

We just got our first house settled Yesterday.
There was a 3 month delay on the COC for the garage and deck.
Few more weeks delay and we wouldn't own a home and would have had to continue renting.

$100k plus deposit for first home is a little hard to get.
All the new laws will do is trap people in rentals and as the rich can see the potential profit margins in rental properties get better they will buy out the affordable homes and charge bigger amounts to rent them.

We couldn't even get our Kiwisaver out due to me owning a percentage of a 60k house 15years ago.
More people remove kiwisaver money on hardship grounds than first home.

[Woodman]

Was talking to a guy who got a promotion which required a move to a different town, but if he sells his house the equity in it will not cover a deposit for a house in the new town so he is now commuting for almost 3 hours per day. Company car and all that, but its only a matter of time before the bean counters put the hard word on hm about fuel/servicing costs etc.

Tough out their for those starting out.

[Road kill]

Was talking to a guy who got a promotion which required a move to a different town, but if he sells his house the equity in it will not cover a deposit for a house in the new town so he is now commuting for almost 3 hours per day. Company car and all that, but its only a matter of time before the bean counters put the hard word on hm about fuel/servicing costs etc.

Tough out their for those starting out.

That's where we are,own there but work here.
House is now outside the reach of the type of people we would liked to have seen it go to and as of last week we now couldn't buy up here if our place did sell.

An older mate of mine just bought a cheap do it up and only got in by the skin of his teeth.
If not for that he would of been condemed to live the rest of his life in the caravan park he spent 5 years in while saving the money for what he has now.

No doubt the rent will now go up on the place we live in up here.

[slowpoke]

Was talking to a guy who got a promotion which required a move to a different town, but if he sells his house the equity in it will not cover a deposit for a house in the new town so he is now commuting for almost 3 hours per day. Company car and all that, but its only a matter of time before the bean counters put the hard word on hm about fuel/servicing costs etc.

Tough out their for those starting out.

Sorry, but I don't understand that. If the increase in pay didn't cover the increase in his cost of living why did he accept the position?

[Woodman]

Sorry, but I don't understand that. If the increase in pay didn't cover the increase in his cost of living why did he accept the position?

Has very small equity in his house, and if he sells won't have enough for a deposit to buy a new one with the new bank rules that are now in place. Promotion was a step up, not a lotto ticket.

[mashman]

Anyone considered that this may be Basel III at work?

[Winston001]

Anyone considered that this may be Basel III at work?

Of course, and rightly so.

[slowpoke]

Has very small equity in his house, and if he sells won't have enough for a deposit to buy a new one with the new bank rules that are now in place. Promotion was a step up, not a lotto ticket.

But he made the choice didn't he, no-one had a gun to his head, and he chose a promotion over housing security. Nothing wrong with that but at the end of the day it's his choice.

Ya never know, not being mortgaged to the eyeballs may well be a good thing in coming months: The State's have yet to taper/cut off their quantitative easing program, yet must do so very soon as they are effectively broke. When they do we could be in for GFC MkII, only worse as no countries have any money left for stimulus programs. Imagine the poor guy above, stretched tighter than a guitar string paying for a $500k mortgage on a house that's just massively devalued overnight.......

[Winston001]

Has very small equity in his house, and if he sells won't have enough for a deposit to buy a new one with the new bank rules that are now in place. Promotion was a step up, not a lotto ticket.

Yes, these days people often need to move or else become unemployed. Not much of a choice.

Got a mate who is in his 50s. He is a scientist paid off the house but doesn't earn a lot. Now he has to sell up and move or try the brave world of being a "consultant".

[Winston001]

We've now taken our place in Tokoroa off the market,who might of bought it can now not afford the deposit.

So we take our place off market and another place for young starters and their families is taken out of the loop.

Why does our gov't hate people so much ?

That must be pretty frustrating for you and certainly not your fault.

The problem is the price of housing has got out of sync - the average house now costs about 6x the average family income. Historically it was 3.5x income - houses are way above what they should be.

As for equity requirements, up until 20 years ago 80% mortgage loans were standard. The only people who could borrow 90% were those on low incomes and the loan was from the Housing Corporation at 9%. The market rate at that time was 14%.

The Reserve Bank does not hate anybody. They are trying to slow house price rises by requiring banks to limit 90% loans: these are still allowed but less of them.

The Reserve Bank is also (correctly IMHO) worried some banks are getting into risky territory with all the high ratio lending. Bank failure is not good for anyone.

[Brian d marge]

Winey winey ,,!,,winey,
Come over here
No fat tarts , on my way home from a date with a 23 yr old and a milf, they paid the bill

The house 100 m2 is new and 0.16 % of my income , this means my wife can be a full time mother

Hahahahààaà your life is shit ,,,,,suck my cock
I'm OK bhyatch

Stephen

PS buy motorbikes , cause they pay me stupid money:-) :-) :-) :-) :-) :-) :-) :-)

[Indiana_Jones]

Winey winey ,,!,,winey,
Come over here
No fat tarts , on my way home from a date with a 23 yr old and a milf, they paid the bill

The house 100 m2 is new and 0.16 % of my income , this means my wife can be a full time mother

Hahahahààaà your life is shit ,,,,,suck my cock
I'm OK bhyatch

Stephen

PS buy motorbikes , cause they pay me stupid money:-) :-) :-) :-) :-) :-) :-) :-)

Sweet as, giz a job lol

-Indy