Property costs in NZ - the heart of evil

[Andy67]

Mate! you couldn't even buy a section in Akld with twice that money. Most areas where sections are available they are selling for closer to five times that value. Hell, even Warkworth is pushing toward $200K now.

I know mate, it one bed apartment territory and the shitest of the shit. Even then the body corp also has a part to play.

[HenryDorsetCase]

So save $15000 deposit on a $75000 house. The mortgage on that is a fraction of what you now pay in rent and in 2 years you will have saved enough for a deposit on a $200,000 house. It doesn't take long to get up to what you want to achieve. It just means living somewhere less desirable for a while.

You've left a zero off each of your figures. Apart from that, good going. Shirley there is nowhere in this country you could buy a house for $75k

[flyingcrocodile46]

Sure. That's the attitude to take you places in life.

Great bit of wisdom there. You and the bank that provides a mortgage would have to be fools to buy into a relocation somewhere just to get an affordable house when there is no income to service the mortgage.

[HenryDorsetCase]

I know mate, it one bed apartment territory and the shitest of the shit. Even then the body corp also has a part to play.

You'd want to be vigilant about a body corporate. UTA 2010 and that.

[flyingcrocodile46]

You've left a zero off each of your figures. Apart from that, good going. Shirley there is nowhere in this country you could buy a mortgageable house for $75k

Fixed

I rather imagine Chch will have a few opportunities for cash buyers.

[flyingcrocodile46]

You'd want to be vigilant about a body corporate. UTA 2010 and that.

That and declining returns on urban fungi crops down at Turners and Growers means it's a bit risky

[Smifffy]

Nah, I got off my arse and looked, instead of whingeing on the internet in the hopes that someone would offer it to me on a plate out of the blue.

Great bit of wisdom there. You and the bank that provides a mortgage would have to be fools to buy into a relocation somewhere just to get an affordable house when there is no income to service the mortgage.

[flyingcrocodile46]

Nah, I got off my arse and looked, instead of whingeing on the internet in the hopes that someone would offer it to me on a plate out of the blue.

Well good for you. However that doesn't make rash advice into good advice does it? Did you buy before you investigated employment opportunities near your new home location or were you simply lucky rather than smart?

[flyingcrocodile46]

You'd want to be vigilant about a body corporate. UTA 2010 and that.

Actually having properly considered the implication of UTA2010 I can see that it is going to fast track a lot of rash homeowners and investors out the back door.

I can just imagine old slumlord smiffy (or whoever) sitting on a dozen units with 30 to 50% equity in run down or rotting developments, happily collecting rents and chipping away at the mortgages. What a shock they will get when they are forced to either cough up the cost shortfall for half their neighbours (to pay for rebuild/maintenance) or forced to sell for ten cents on the dollar to a developer who is prepared to fund the whole thing. Imagine owing 50% to 70% on a dozen properties worth 10 to 30% of their bargain basement $75K purchase prices. That ain't a back door, it's a trap door over the pit of despair.

Banks must be thinking pretty hard about their exposure on unit title properties now. That will likely make it very difficult to get loans on them.

Look out for cheap units in the near future eh!

[Jantar]

You've left a zero off each of your figures. Apart from that, good going. Shirley there is nowhere in this country you could buy a house for $75k

Try Murapara http://www.trademe.co.nz/property/re...-408836140.htm
Ohura http://www.trademe.co.nz/property/re...-414991392.htm
Mataura http://www.trademe.co.nz/property/re...-462280179.htm
Ohai http://www.trademe.co.nz/property/re...-443845894.htm

Others I know of in Tuatapere, Kaitangata, Authers Pass, etc.

[flyingcrocodile46]

Try Murapara http://www.trademe.co.nz/property/re...-408836140.htm
Ohura http://www.trademe.co.nz/property/re...-414991392.htm
Mataura http://www.trademe.co.nz/property/re...-462280179.htm
Ohai http://www.trademe.co.nz/property/re...-443845894.htm

Others I know of in Tuatapere, Kaitangata, Authers Pass, etc.

Excellent value IF you happen to be a sheep shearer or milking hand and can find employment nearby

search results for Trade Me Jobs

Keywords: 'Ohura' No search results for Trade Me Jobs

Keywords: 'Ohai' No search results for Trade Me Jobs ( I like that one but no work, no pay back loan and eat)

Keywords: 'Murupara' 1 listing, showing 1 to 1 STOCK CONTROL POSITION - Murupara

Keywords: 'Gore' 29 listings (there is genuine hope of employment with this one but a truckload of money and sweat to invest in the very near future to maintain any amenity value and avoid an empty section and negative equity.)
http://www.trademe.co.nz/Browse/Cate...ch_suggested=0

Not a bad result all in all

[Smifffy]

Since you really do seem to want it all on a plate:

I checked out the kind of work I wanted to do, and where that work was available
I did what I needed to do to make myself a suitable (the best) applicant
I applied for the job while still working my old job, which was on rolling 6 week contracts. (It only rolled if I was lucky)
I got the job and moved to the new location, renting.
Rented for a couple of months then bought.

Luck wasn't with me all the way, I bought while the local market was in a real bubble. Still I could put my place on the market for considerably less than it's market valuation and still make money on it if it sold.

I also managed to keep that other place I mentioned earlier that I was going to furnish with beer crates.


Yeah, it's fucking good to be lucky sometimes eh? I wonder how much better I could have done if I was smart?

I cry into my beer every night that I can't get to live in Auckland. (That's for the Tui billboard).

Well good for you. However that doesn't make rash advice into good advice does it? Did you buy before you investigated employment opportunities near your new home location or were you simply lucky rather than smart?

[merv]

Jantar, places like Ohura are a ghost town now and you'd have to be careful you weren't getting into a negative capital situation you can't get out of.

[Road kill]

You've left a zero off each of your figures. Apart from that, good going. Shirley there is nowhere in this country you could buy a house for $75k

Sure you can,,in Te Teko,Murapara,Ohura,Mangakino and a few others.'
In fact you can pick up a nice 1960's ex NZFP home in Mangakino for around $50,000.
Hell,I bought my own house in Tokoroa for $89,000 which is a bit over the budget but it's gone up almost $30,000 in the 8 years since I bought it,,so it's all good an you never know,,one day I might even be able to find work there and actually live in the place myself.

What your going to do with "your" flash new place in Mango' is of course,,another story.

[flyingcrocodile46]

Since you really do seem to want it all on a plate:

I checked out the kind of work I wanted to do, and where that work was available
I did what I needed to do to make myself a suitable (the best) applicant
I applied for the job while still working my old job, which was on rolling 6 week contracts. (It only rolled if I was lucky)
I got the job and moved to the new location, renting.
Rented for a couple of months then bought.

Luck wasn't with me all the way, I bought while the local market was in a real bubble. Still I could put my place on the market for considerably less than it's market valuation and still make money on it if it sold.

I also managed to keep that other place I mentioned earlier that I was going to furnish with beer crates.


Yeah, it's fucking good to be lucky sometimes eh? I wonder how much better I could have done if I was smart?

I cry into my beer every night that I can't get to live in Auckland. (That's for the Tui billboard).

Cheers! Very good of you an all. That means that my observation that the opportunity to purchase needs to be qualified by a bit of research into employment opportunities rather than left to chance/"luck"....

That's fine if there is employment in that less desireable location and assuming it pays enough to allow savings. Where/what pray tell, is this wonderful housing and employment opportunity?

didn't really warant the comment...

Sure. That's the attitude to take you places in life.

when in point of fact, you acknowledge that you didn't jump in boots and all leaving it to luck, but rather researched and even sampled the local employment options before you purchased.

Yeah I see exactly where the Tui's are