This Auckland Property is undervalued

[chrisgoh]

$17m Mellons Bay home the year's juiciest sale

By global standard, this property is undervalued

[Orkibi]

Global standard in the eye of the beholder ....
i thoght that 12 years ago before moving to NZ while looking online on properties. And some Anericans or Asians who look at Auckland or Queenstown think it's undervalue.., while 70% of NZers think it's over priced!

ok in Singspore or Hongkong you will pay 2-5 times more for iner city apartment or town house..

[chrisgoh]

By global standard, I think not many major cities can match what Auckland has to offer:

1. Rule of law
2. Freedom and democracy
3. Stable political environment
4. Strong and stable currency
5. Safe and peaceful
6. Excellent education system
7. Sound financial system
8. Business friendly environment
9. Good medical care
10. Most beautiful place on earth
11. Ability to own the property in perpetuity (freehold)
12. Diversity and friendly people
13. Clean and environmental friendly nation
14. Least corrupt nation
15. Innovative and creative

...many more.

Auckland property price is playing catch up game with global cities.

[Damap]

I live not far from that house. The price is ridiculous.

[Orkibi]

The most "undervalue " and affordable stock then in AKL CBD is 2-3bed apartments with sea views.
they cost well over $500k in Australia, Singspore or Hongkong

[elguapo]

1. Rule of law
2. Freedom and democracy
3. Stable political environment
4. Strong and stable currency
5. Safe and peaceful
6. Excellent education system
7. Sound financial system
8. Business friendly environment
9. Good medical care
10. Most beautiful place on earth
11. Ability to own the property in perpetuity (freehold)
12. Diversity and friendly people
13. Clean and environmental friendly nation
14. Least corrupt nation
15. Innovative and creative
.

High wages seems to be missing from you list....

[Damap]

Very true Hadar but they never have taken off here. We don't have the incomes and in the main we don't like apartments. Plus many of the down town ones are leasehold.
My pick for most undervalued area is Stanmore Bay. The access keeps it back but the beaches are amazing and you can buy cliff top for a song.

[Orkibi]

Looking good stanmore bay. How much for multi unit site there?
any options for home and incomes there??

for holding income until values pop.

[Damap]

I have looked at a few over recent times. Lots of older homes, well built and some bach style. I like elevated parts with good views even if a bit further away from the water.
Having said that this a potential H and I site at Arkles close to the water

http://www.trademe.co.nz/property/residential/sections-for-sale/auction-740623028.htm

I have watched the whole area for a few years now. If i wasn't so invested in Pakuranga already this area would be my first preference for buy and hold stock.

[chrisgoh]

High wages seems to be missing from you list....

In terms of minimum wage, NZ rank top 10. More than many major cities.

[McDuck]

In terms of minimum wage, NZ rank top 10. More than many major cities.

First I thought you were being an idiot.
Why quote the minimum wage when talking about purchasing a high end luxury product?
Surely, in a global picture you would compare the high end incomes?

but yes,... you might be on to something there, provided that a large enough bunch of McDonald's workers could form some sort of collective, then yes, they could purchase this property and all live in it.

If you yourself have seriously got that sort of income, then you shouldn't be wasting it on this sort of batch. You'll never get to use it that much, and the kids will just wreck it. London or New York are where the action is.(HK if you like that sort of climate).

(Ps re your avatar. I had no idea that the Easter Island heads pointed away from the sea, and that beneath the soil they had full length long bodies! What about their unbreakable pictorial language.. now that's a code worth having a crack at!)

[elguapo]

In terms of minimum wage, NZ rank top 10. More than many major cities.

What kind of house in Auckland can you buy on minimum wage?

[Damap]

Your first thoughts were correct Duck, minimum wage is completely irrelevant. Our low wages are a huge problem.
The most comprehensive sensible approach is Demographia. They produce the house wage index. We are seriously unaffordable. Always in the top ten least affordable, especially Auckland.
2014 report is @ http://www.demographia.com/dhi.pdf

[chrisgoh]

What kind of house in Auckland can you buy on minimum wage?

You are right elguapo. My bad, should not use minimum wage in this quote. But it goes to show the effort to narrow the income gap.

Unable to get high income household and high net worth statistic online. One thing for sure is that professionals in NZ are paid equally high if not higher compared to many major cities. Talk to business operators with regional exposure, quite sure they will share the same thoughts. This is the only article (2013) I could find online, which should be higher by now:

Average house income hits $85k


Again, it is irrelevant to use average income to substantiate that kind of multi-million dollar property investment. Such properties only reserve to super high net worth individuals, and the rules apply not only in New Zealand but everywhere on earth. How many average households in London, Paris, Hong Kong, USA, Singapore & etc can afford that kind of multi-million properties?

The fact is that majority of people in major cities stay in apartment because landed and sea front properties are too expensive for them. Even some high-end apartments are beyond reach to most average households.

The point is that Auckland has all the attributes of major cities, and it is always rank among the top in the World. The property prices should reflect that...

[elguapo]

One thing for sure is that professionals in NZ are paid equally high if not higher compared to many major cities.

Not even close to sure, I think this is highly doubtful. Maybe the change in exchange rate has skewed the numbers in the last couple of years, but I don't see many Australian professionals flooding across the Tasman for the higher wages....

The point is that Auckland has all the attributes of major cities, and it is always rank among the top in the World. The property prices should reflect that...

lol, that's just delusional, Auckland is in now way a major city, it barely makes it as a minor city in world terms. Why does everyone compare Auckland to Sydney, Hong Kong, New York, London, when the true comparison is more likely Dublin, Madrid or Toronto?