Auckland Property- I don't get it!

[Louise40]

Hi, please tell me if I am simply naive or missing something.

After these recent new GVs came out I thought selling prices would be now be around GV making it easier to predict selling price.

But this week - GV 690K ( Hurrah, we can afford it ! )
Price at Auction 825K ( oh no, we can't)

Is this what is happening, properties already going so much over GV ?

[Maccachic]

GV isn't a valuation they just use it to extort money out of owners.

[PTILoveYou]

GV is not market/registered valuation, so don't trust it.

Also when you got a few buyers competing for the same property, the price can go crazy.

[skid]

Im going to take a guess and say that it is more likely that the cheaper areas are going to be more over the GV than the $1,000,000+ props

Also worth considering is that the CVs place alot more emphases on the land than the house---If this place was a pretty decent house that could explain.

[Perry]

RVs, GVs, CVs - whatever, are computer-
generated guesswork, so don't put any
faith in them, at all.

[Bluekiwi]

Hi, please tell me if I am simply naive or missing something.

After these recent new GVs came out I thought selling prices would be now be around GV making it easier to predict selling price.

But this week - GV 690K ( Hurrah, we can afford it ! )
Price at Auction 825K ( oh no, we can't)

Is this what is happening, properties already going so much over GV ?

Its called supply and demand 101.

If you have a 500k CV on a rat infested dump next to a transformer and motorway it will sell less than CV.
As the demand is not going to be high.

If you have a nice house well looked after in a good street presented well with no driveway issues and good flow and views then you will see demand is high for that house and it might go 250k over CV.

Its not rocket science.

[Bluekiwi]

Buy something in Ranui like I did and spend your weekends and evenings renovating it and selling it for me, and move closer to where you want to be over time.
Do the hard yards.

[McDuck]

Its called supply and demand 101.

I often wonder what people exactly mean when they say that.
Do they really understand the situation, or are they trotting out some overheard phrase.
Supply of what exactly? Demand for what exactly?

The big mistake is to think people are buying only a dwelling and some land.

A person from India might be buying space to walk around without crowds.
A person from China might be buying shelter from the communist party and their corruption sweep.
The supply of cash might be the life savings of first home buyers in New Zealand.
Alternatively it could be from the sale of a family plot of land in India , which now has a call center built on it.
Or a bunch of under the table cash from deals in Hong Kong, made by exploiting countryside workers, making knockoff products.

So you can see there is no one supply or one demand, and Spaceman will be annoyed to learn , there is therefore, no marketplace.

[Bluekiwi]

I often wonder what people exactly mean when they say that.
Do they really understand the situation, or are they trotting out some overheard phrase.
Supply of what exactly? Demand for what exactly?

The big mistake is to think people are buying only a dwelling and some land.

A person from India might be buying space to walk around without crowds.
A person from China might be buying shelter from the communist party and their corruption sweep.
The supply of cash might be the life savings of first home buyers in New Zealand.
Alternatively it could be from the sale of a family plot of land in India , which now has a call center built on it.
Or a bunch of under the table cash from deals in Hong Kong, made by exploiting countryside workers, making knockoff products.

So you can see there is no one supply or one demand, and Spaceman will be annoyed to learn , there is therefore, no marketplace.

I was part way replying when I just realised why I dont ever reply to ducky here