Auckland property market

[samishiv]

It just seems like the prices are going through the roof and the interest rates are quite low. Is there anyone else worried that the bubble will burst soon, just going by whats happening around the world. I just bought my first house and initially i was waiting for the prices to drop but at the same time i was worried it would keep rising. I have a feeling the good times wont last too long. Would be interested to hear everyone elses views on this

[Glizzle]

Its because Aucklands awesome.

[turneg01]

I dont think the property prices will drop but i do think they will stop rising, just a hunch

[KyronGosse]

Don't see them dropping any time soon, in fact as the boom hasn't even hit yet they are going to go even higher. You want to google the economic clock which shows you what the indicators are for when it will boom and when it will bust.

[Bob Kane]

We're still coming out of slump.
Wait till the immigrant figures go up - prices will really start to rise then.

[McDuck]

We're still coming out of slump.
Wait till the immigrant figures go up - prices will really start to rise then.

To answer this question was one of the main reasons I revisited this forum.

I notice all the road cones everywhere, I looked at the amount of cranes over Auckland, I watched the looks on buyers and sellers faces at house auctions, I observed the prices of electronic goods on trade me, I noticed the sense of panic in immigrant conversations about finance, I looked at the temperament of the PM, I looked at the disposition of the banks.
Something was happening behind the scenes, it didn’t add up and it was a great mystery.
Who doesn’t love a mystery?

[lawt]

From the day we had a bigshake in Chch the writing was on the wall.
We lost a lot of housing stock - the people had to be housed. There will be a rebuild in Chch sucking up many trades people and a lot of materials.
Both steel and timber went up around 10% within 6 months.
Many commercial buildings are going to have to be uprgaded over the coming years to meet earthquake codes - again further pressure on labour and materials.
Trying to build in Auckland is going to be quite expensive due to demand on resources - both labour and materials.

When the cost of a new house goes up people will look to older houses so they too will go up.

Then you have the issues which you are seeing in the press about the councils restricting access to land and population increase.
At best the govt may reign in the rate at which property prices increase somewhat over where they would have been, but we'll never know.

I find it hard to imagine that you will see a slow down in less than 5yrs from now.

Could get real interesting if there is a downturn in the mining industry in Ausie (it has been suggested) and a heap of kiwis come flooding back.

[speights boy]

The number of sales has increased recently.
Anyone have any figures on a breakdown for sale reasons?
EG: upgrade, downgrade, emigrate, move inside NZ, estate, mortgagee, IP sale, rent, retirement home, partnership split.

[Gladdynook]

I always think that if your goal is to build wealth through accumulating property, then there is never a bad time to buy. That said you can always buy badly in any market. The key is to find a good property that works for you - stacks up financially, attracts the right tenants, etc. Over the long term you'll come out ahead regardless of when you bought. It is only if you have to sell that you may find yourself in trouble. So provided you have cash reserves, then go for it.

Every time i buy a property i feel i've paid too much for it, and that i should have bought it six months ago, or a year ago. I look back now and people say to me i was lucky to buy when i did. And i intend on buying again in the next month or two.

[KyronGosse]

Also with the housing NZ and kiwi saver first home buyer scheme, plus banks doing 95% LVR on your PPoR the amount of first home owners in the market is huge, they have all been holding onto their money for the last 5 years and now everyone is looking to buy at once. This is pushing up the lower housing bracket ($300 - 450k) therefore those sellers are moving up into the next price range and so on.