KiwiBuild - Labour's latest spectacularly stupid idea.

[drelly]

Yes, the topic of another thread.
The rest of the world, overpopulated, polluted, corrupt, harsh weather ...or whatever....sees us and realises just how comparatively cheap it is to buy great property here.
That effect flows downstream.
Plus there are no restrictions or impediments to purchase, means young NZ families are rapidly losing the ability to compete.

I've never seen any figures on how many properties are bought and held long term by non-nz resident investors, so it's hard to comment. For immigrants coming here, they're not buying first home buyers houses. They want new ones or at least better quality ones. Also, it's cheap to buy here with overseas money but they still have to live on a NZ wage.

[speights boy]

What did you make of the Hobsonville quota decision?

[drelly]

What did you make of the Hobsonville quota decision?

I hadn't heard about it (see here). I think like anything, it depends on how it's done. However, it does remind me of the Adjustable Rate Mortgages that they had in the US, where the rate went up after the first few years - the way they delay paying for the land. There are so many factors. A cheap house is not necessarily a house that someone wants to buy. If the cheap houses drag down prices of surrounding houses, that would create issues. The delay in buying the land is effectively a subsidy, which doesn't solve the problem, just avoids it for a while at others' expense. It sounds like it failed 3 years ago, so I don't know why they're doing it again.

[speights boy]

so I don't know why they're doing it again.

Preempting on a Friday Labour's Monday announcement.
Obviously not much fanfare as it's very very minor.
However methinks you'll be disappointed if you expect to see radically different plans from National.

As an aside.
Across the road Summerset bought the old Monterey Park Motor Museum for a new retirement village.
Nice spot.

They and Ryman espc, probably are two of the smartest property developers in the business.
Very profitable business model.

Disclosure: Hold RYM & SUM

[eri]

manukau city has it's apartment buildings looking down on the shopping center

next will be new lynn?

1 bed from $249,000 (one ad says 2 beds - $249,000, the other 1 bed - $249,000, what's the bet you can't get 2 beds for $249,000)

http://www.trademe.co.nz/property/re...-535680305.htm

"smart growth" presumably means more will spring up at places like sylvia park where transport, shopping, reasonable land prices and reasonable demand exist

that would start providing the places for retirees to move to as they aged and young dink families to get their foot on the property ladder with only a short commute to work

[essence]

Also, it's cheap to buy here with overseas money but they still have to live on a NZ wage.

It is NOT cheap to buy in NZ with overseas money, even with the conversion from foreign currency to $NZ. Each and every market is different, we all know that. We can get into a discussion about what $xxxx will buy compared to £'s, or ringitts, or Euros but IMHO, the NZ market is probably 20-30% over-valued.

With the newer building rules in NZ, new builds are double-glazed and insulated up the yin-yan but older properties are horrendously cold.

It is mandatory in the UK for all properties to be double glazed & insulated, so those moving from the UK to NZ find the houses really hard to live in because they are so cold. We (generally) don't have central heating.

Why wouldn't overseas nationals "park" their money in NZ due to the GFC. NZ is a safe country (just been voted best country in the WORLD to do business in!), companies are easy to set-up (ridiculously so), deposit rates are still higher than most Western countries.