Christchurch investment long term

**frazzledfozzle** · 27-02-2013, 02:22 PM

Just wondering what everyones thoughts are on investing in Christchurch longterm?

I know right now there's a big demand for rentals but to offset that purchase prices on hoses have gone up substantially.

Also wondering if a house purchased today will have less capital gain over the next 10 -15 years with all the new builds that will have been built in the mean time.

I know it's crystal ball but....anyone have an inkling?

Thanks alot for any thoughts

frazz

**Maccachic** · 27-02-2013, 02:42 PM

How many business have left the ChCh / how many have come into ChCh? This will affect demand and the subsequent prices.

**frazzledfozzle** · 27-02-2013, 03:28 PM

Wouldn't that be a long term thing also? I'm thinking more business will be drawn to ChCh as it rebuilds.

**Maccachic** · 27-02-2013, 03:38 PM

Its pretty expensive to up sticks and move a business and a huge hassle, are the companies that have moved out planning on returning?

Im not sure but my opinion is ChCh is going to have this stigma for a while, its not somewhere I would personally consider moving to now with the shakes still continuing and I had looked at moving there in the past. My thoughts FYIW.

I don't personally know the Christchurch situation very well as I haven't looked into but as an outsider that is my opinion.

**frazzledfozzle** · 27-02-2013, 05:09 PM

Thanks Maccachic thats exactly what I was wanting,

any personal views either positive or negative are all food for thought.

**Gypsygirl** · 27-02-2013, 09:42 PM

Sorry I disagree. Living here the vibe here is that things are moving forward fast. It is going to be the newest most modern city in New Zealand in a few years. We have people coming in now who want to be living here long term, including a lot who have left when the shakes started.
We have a huge number of overseas workers here, including a lot of Irish people a good portion are wanting to stay and live here as Ireland has such few opportunities and hardly any work and is not likely to improve in the next few years. I work in the construction industry and have a lot of Irish friends and people who have moved here who I have talked to about staying and living here. Nearly all are committed to the next two years anyway and about 70% are planning on staying longer.
The city is repairing fast and combined with large numbers of people coming in wanting to stay the investment potential is huge. The money to be made in Chch over the next ten years will be staggering.
The guys coming in have large pay packets and limited places to spend it at the moment. Its only good for housing investment.

PC · 28-02-2013, 08:48 AM

The Napier earth quake in 1931 killed more people and made rather a mess.
Napier is a pretty great place.
I bet ChCh will be even better in time.

**Rosco** · 28-02-2013, 09:01 AM

What about the worse case?
What happens if earthquakes continue?
What happens if more land is found to be unstable?

If the worse happens, then there will be a point where business stops taking the risk and slowly moves out. Also a point where families have had enough and slowly move out.

The higher the risk, the higher the reward. If you were looking to buy in Christchurch, then you would want to make sure you weren't buying into an unstable area. For me, its just not worth the risk. Sure I might miss out on some great gains, but there is opportunites elsewhere in NZ without a signficant earthquake risk.

From an economic viewpoint, the prices will only be able to go so high compared to other main centres. Families looking to move to Christchurch will compare the costs of owning a house in Christchurch with other main centres where they could also obtain employment. If prices get too high, this could force businesses out and they might start looking at other main centres for cheaper costs.

Ross

**Rosco** · 28-02-2013, 09:03 AM

Also remember that property investing isn't emotional. It's a business and in many cases has a major impact on your life.

**Keys** · 28-02-2013, 09:04 AM

Originally Posted by Rosco

From an economic viewpoint, the prices will only be able to go so high compared to other main centres. Families looking to move to Christchurch will compare the costs of owning a house in Christchurch with other main centres where they could also obtain employment. If prices get too high, this could force businesses out and they might start looking at other main centres for cheaper costs.

Then,

Why is Auckland still climbing?