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Christchurch heads South, Auckland still in ascendency
Shaumbeel Eaqub is well polished and puts on a good show. I don't think he understands the fundamentals of property though. At the end of the article it says:
He says he and wife Selena Eaqub not only rent for lifestyle reasons but also because it makes little economic sense to buy now. "The valuation in housing is so expensive that the risk of a downturn over the next 5 to 10 years is much higher than big increases," he says.
He's spot on in one sense and dead wrong in another. Yes there will be a downturn in this period. But in ten years time houses will absolutely be worth a lot more than they are today.
Since I've been reading his economic analyses saying buying a house makes little economic sense I have achieved a 7,000% return on an initial $10k investment into property. This does not include any of the principle repayments I've made! I'd like to know if he thinks, in hindsight whether my buying property made economic sense or not.
Without doubt DHTP I thought over all his comments are so naive I wondered if it was a spoof piece. It is an incredibly sad poverty mindset. Almost unbelievable to me.
Without doubt DHTP I thought over all his comments are so naive I wondered if it was a spoof piece. It is an incredibly sad poverty mindset. Almost unbelievable to me.
Most highly educated individuals without industry practice other than relying on historical data and looking at text books have no clue how the real world function. They failed to realise practitioners create history, economists read history.
As I said in another thread rents have stabilised
in Christchurch but with the lower purchase
price makes for better returns on investment
than Auckland.
Still great demand in experience when near Ch-Ch
CBD with listing a property on trademe and having
50 watchers in less than 12 hours.
Without doubt DHTP I thought over all his comments are so naive I wondered if it was a spoof piece. It is an incredibly sad poverty mindset. Almost unbelievable to me.
I have twice on here made very strong comments on what I think of "The Sham".
I cant waste my time again thinking of more pun's to describe his inadequacy's.
But I do wonder how he has a job as an economist when he doesnt understand the laws of supply and demand.
Cant do an economic cost benefit analysis of buying v renting in auckland these past 5 years.
Still thinks he is right now, when 5 years ago he was wrong, and every year since has been proven wrong.
I loved Mat's piece taking him apart piece by piece earlier this year.
His creation of the phrase "Zombie Towns" and actually naming specific towns, basically putting a hex on them.
Was not helpful to NZ, naive and dangerous, thats how I look at him.
Cause he is correct in that you should not have money invested in
your personal home.No tax breaks etc. (At start and midway of property investment cycle)
"The valuation in housing is so expensive that the risk of a downturn over the next 5 to 10 years is much higher than big increases," he says.
You lot that think Auckland prices will just keep climbing forever are displaying
a staggering amount of naivety and wishful thinking.
Since Auckland is the engine of growth, let's do an autopsy on Auckland Region:
QV Report:
"The Auckland market has increased 11.6% year on year, 5.1% over the past three months and 41.9% since 2007. When adjusted for inflation values are 10.7% over the past year and are 21.3% above the 2007 peak"
Let's take a look at past 3 months statistic:
1. Auckland City South - 7.9%
2. Auckland City East - 6.7%
3. Auckland City Central - 4.7%
4. Papakura District - 7.3%
5. Manukau North West - 6.6%
6. Manukau Central - 2.6%
7. North Shore, Onewa - 7.1%
8. North Shore, North Habour - 3.1%
9. North Shore, Coastal Region - 2.5%
10. Waitakere City - 4.9%
11. Rodney District - 1.3%
*Statistic may be distorted due to limited sample size.
Cause he is correct in that you should not have money invested in
your personal home.No tax breaks etc. (At start and midway of property investment cycle)
"The valuation in housing is so expensive that the risk of a downturn over the next 5 to 10 years is much higher than big increases," he says.
You lot that think Auckland prices will just keep climbing forever are displaying
a staggering amount of naivety and wishful thinking.
Prices will go up and down over a short term but in the long term they will "just keep climbing forever". At least until the world as we know changes radically.
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