House buying

[HEsch]

In my neck of the woods, houses are generally going for 20-25% more then CV (current valuation as per Council). I don't have anything to compare to RV. Hamilton has gone flat (0.3?% increase since Dec), Auckland is apparently "dropping" (I think more people are buying smaller places, apartments, etc, which means the total value appears to be lower compared to number of sales).

Check what you can about the property's last sale value and the values of sales in the area. Those prices tend to show you more about the value (but then that's what any valuer does - looks at what's selling in the area and finds similar things to the one you're looking at). There's a lot of magic 8 balling with valuations.
I also looked at houses above and below my price point (I wanted to spend 450, so I looked at anything from 300 to about 600) just to get a feel for the condition, age, etc, of the properties, and their listed and sale prices. I felt it gave me the confidence to say the one I bought was priced accurately and I paid a fair price for it (a tiny smidge above asking).

[neels]

And there ya go....

https://www.stuff.co.nz/business/944...e-market-trend

[HenryDorsetCase]

In my neck of the woods, houses are generally going for 20-25% more then CV (current valuation as per Council). I don't have anything to compare to RV. Hamilton has gone flat (0.3?% increase since Dec), Auckland is apparently "dropping" (I think more people are buying smaller places, apartments, etc, which means the total value appears to be lower compared to number of sales).

Check what you can about the property's last sale value and the values of sales in the area. Those prices tend to show you more about the value (but then that's what any valuer does - looks at what's selling in the area and finds similar things to the one you're looking at). There's a lot of magic 8 balling with valuations.
I also looked at houses above and below my price point (I wanted to spend 450, so I looked at anything from 300 to about 600) just to get a feel for the condition, age, etc, of the properties, and their listed and sale prices. I felt it gave me the confidence to say the one I bought was priced accurately and I paid a fair price for it (a tiny smidge above asking).

Capital Value and Rating Value are effectively synonyms. Neither are a substitute for MV or Market Value.

Your strategy for buying is a good one.

[Akzle]

anyone else remember that time that everyone got fucked over except for the banks and the jews that own them?


mmm. fremarketeconomoney. cos... ehh, well...

[R650R]

RV, Cv all lots of same names as what used to be known as Gv government valuation. Back in the day the GV used to be fairly close to what somethign was worth. In todays market places often sell for well over or sometimes under both known as market value.
When i went to bank their online valuer service priced about same as homes.co site number....
When I decided on what i was buying in this inflated market i looked a lot at section size and location, thats always worth something, especially if say your house burns down and your insurance has expired etc,,, just imagine that in an expensive modern townhouse on small section.....
At the moment two bedroom places, low maintainace and safe location seems to be selling high and fast...
Also if somewhere has a shitty house but the section size and layout lends it self to subdividing then its worth more than you think....

My biggest advice is buy what you can afford. I could have borrowed slightly more but jesus all the odds and ends afterwards add up fast...
Map out your cashflow before offer and at least two months after as a forecast.


Todays mission, put heatpump back together after cleaning filters and get new universal remote to talk to it....... lots of swearing seemed to help.
Scrubbed up all the bigger bits with suagr soap and shes looking like new.

[eldog]

anyone else remember that time that everyone got fucked over except for the banks?


mmm. fremarketeconomoney. cos... ehh, well...

Yes, all too well.

this cycle is repeating itself, again.

its a matter of spotting the sudden panicking change of fortune and making sure your able to withstand the storm or lack of work/defaulters etc.

all to well I remember it.......

[eldog]

Best thing you can do, make the agent do the running around while sorting the conditions, and leave the lawyers out of it until it's actually time to confirm.


I'm still getting mail for the people before the people before the people we bought our house from, all of it gets marked return to sender, no forwarding address and dropped in the nearest post box. I'm sure those letters from WINZ and suchlike aren't important.

I've always found when you move in the house is a lot filthier than it looks when you walk through, best time to clean is before you spread your stuff around the place.

The agent was in it for her own good, didn't present offers to vendor, in the end I got advice from another real estate agent, on whose advice I contacted the vendor, who didn't realise I had put in multiple offers.

Real estate had the check to say in a neighbour hood ad drop that I was happy with her work. Subsequently has moved 2 real estate agencies......

For more than 8 years got mail for previous owners, no matter what wrote on letters for return to sender.

my parents continually get parking fines, speeding tickets etc etc for someone who lives in another town with the same road name. No matter what they do, the authorities won't change the address, even though it's so easy to check....... took me 2 minutes.

[HEsch]

My biggest advice is buy what you can afford. I could have borrowed slightly more but jesus all the odds and ends afterwards add up fast...
Map out your cashflow before offer and at least two months after as a forecast.

This.

Based on savings, the bank would have lent me an insane amount of money. I declined, settling for a "reasonable" amount of debt (which still seems insane, but is manageable).
Some smart cookie suggested I make sure I could service my mortgage if the rates doubled (ie 10% rather than 5%). Another one suggested that, while a lower interest rate does help, a slightly higher interest rate but paid off more quickly is more likely to save you money than slow repayment with a low interest rate (make compound interest work for you, not against you).

I also did the sums and managed to get away with structuring a 20-yr mortgage instead of a 30-yr one, at the same repayment as my pre-approval (which is done using the variable interest rate ie the highest one).

[Moi]

...Some smart cookie suggested I make sure I could service my mortgage if the rates doubled (ie 10% rather than 5%).

For those of us buying in the early to mid-1980s mortgage rates did a little more than double... try 22%.

However, in all fairness, the mortgage was only $55 000.00...

At the time the real estate agent said that worrying about rateable value or rentable value or unimproved value or whatever "value" the local council was using to set rates was a waste of time... the most important value was the one that both seller and buyer agreed upon and were both happy with.

[eldog]

For those of us buying in the early to mid-1980s mortgage rates did a little more than double... try 22%.

However, in all fairness, the mortgage was only $55 000.00...

At the time the real estate agent said that worrying about rateable value or rentable value or unimproved value or whatever "value" the local council was using to set rates was a waste of time... the most important value was the one that both seller and buyer agreed upon and were both happy with.

some had higher than 22%, some went to the wall, some went over the edge.
Some sacrifaced everything.....

i hope that this at least runs for another 3-5 years
its all cycles, just much quicker ramps up and down with the internet panic attacks.
look at the price of milk how it has changed over the years.

[eldog]

This.

Based on savings, the bank would have lent me an insane amount of money. I declined, settling for a "reasonable" amount of debt (which still seems insane, but is manageable).
Some smart cookie suggested I make sure I could service my mortgage if the rates doubled (ie 10% rather than 5%). Another one suggested that, while a lower interest rate does help, a slightly higher interest rate but paid off more quickly is more likely to save you money than slow repayment with a low interest rate (make compound interest work for you, not against you).

I also did the sums and managed to get away with structuring a 20-yr mortgage instead of a 30-yr one, at the same repayment as my pre-approval (which is done using the variable interest rate ie the highest one).

Keep the smart cookie on....

allow to pay at double current rate.

if you can pay off at a faster rate, then do so earlier the better. At least that's what I am doing. Sacrifice some things now for faster and less $ overall paid

pays to ask bank questions, you may get a better deal. You can always go back along the way and restructure, you just need to ask, the asset isn't going away. Bank fell over themselves when I put a plan in front of them.

if things turn to bad custard you can always sell asset and move on.

[Akzle]

look at the price of milk how it has changed over the years.

5.3 jewgolds for a pound of butter. and counting. what. the. actual. fuck.

[eldog]

5.3 jewgolds for a pound of butter. and counting. what. the. actual. fuck.

Ya don't need it or marg.

only have it for cooking or when having crumpet

[pete376403]

Ya don't need it or marg.

only have it for cooking or when having crumpet

Or re-enacting "Last Tango in Paris" (or, as you said, having a crumpet)


http://www.dailymotion.com/video/x55kcrl

[sidecar bob]

5.3 jewgolds for a pound of butter. and counting. what. the. actual. fuck.

It is possible to make your own if you think there are savings to be had doing it that way.
To me it would be a bit like walking to work, the $2 of petrol it costs me to get there is more economical than arriving an hour later.