I give up

[Frezzinghot]

It will only increase no matter what is done. In NZ the difference will be overseas money will park here and locals will be renting forever.

This is the sad part about it, if kiwis dont wake up and hold on to their own property, there is no hope for their future generations, and will be lost forever to foreign investors.

[elguapo]

The other issue, is will Auckland go down? Just with the huge demand, large immigration, growth predictions for next 30 years of another 1 million people in Auckland, I can't see the bubble bursting. Maybe it will go flat for a year or two when interest rates rise, but backwards?

This is the biggest question for most NZ property investors. Will Auckland permanently decouple from NZ, or will it revert to mean?

[Damap]

Yep don't give up Freezing. The agents I cultivated years ago work just as hard for me now if I ring them. Even though in 2 cases I hadn't spoken to them for nearly 4 years. Relationships matter in this business baby.

[Frezzinghot]

Yep for sure, may have to get out the old coffee club card and start shouting coffees again.

[jobe88]

where 'good' constitutes 6% gross these days.

This is the same dilemma I have. I am a novice property investor read first property, and I am trying to do it right. Good fundamentals. I am stunned at the number of agents that don't even understand gross yield!

Can I just ask what kind of purchase price you are looking at to get 6% yield? I was thinking something in the 4% was good for Auckland but there is my naivety showing through.

If I am asking for too much information please let me know. I am not trying to steal your ideas.

[speights boy]

Yes it is interesting. Singapore and Norway being the most obvious examples.

Leadership.

A High-End Property Collapse in Singapore

As Singapore pitched itself as a place for Asia’s rich, Sentosa Cove attracted many wealthy Chinese, Malaysians and Indonesians.
But the momentum behind that boom is slowing, putting the gated community at the center of the weakness.

The slowdown has been orchestrated, in part, by Singapore’s leadership.

Faced with simmering discontent over rising living and housing costs, the government executed a succession of cooling measures that have hit the high-end market especially hard.

A property sales tax of 18 percent for foreigners has reduced buyers’ enthusiasm. Levies are nearly as high for those hoping to flip their properties in the first or second year.

With the government unable to contain the heated market, the growing presence of foreigners and the rising cost of housing became a flash point for discontent.

http://www.nytimes.com/2015/02/18/realestate/a-high-end-property-collapse-in-singapore.html?ref=business&_r=0

[Leftette]

From what I've seen recently, jobe, 6%+ can only be found on places with 2 homes on site. I'm not into illegal conversions or renting internal granny flats, btw. For standalone property (units, houses etc) you're lucky to get 4% gross, which is stupid as it'll always be seriously cf -ve to the tune of 4 figures per month. Has to be some serious capital gain to offset those numbers, and with the Govt under pressure to ease the rate of house price inflation, I don't see Auckland gaining like it has been, despite what some wishful thinkers around here say.

[speights boy]

Of course we have the "no, no...it's not us to blame" crowd who regularly try to convince us otherwise on this forum.

Right on cue.

Why target investors?

Property investors have hit back at suggestions Government would support new lending rules for property investors.

http://www.landlords.co.nz/article/5326/why-target-investors

[eri]

Labour's housing spokesman, Phil Twyford, said his party supported a crack-down on investors but

the best way to help the Auckland housing market was to boost supply

[speights boy]

He is correct of course.

While we wait 5 years for that to be noticeable, the RBNZ will act in 5 months.

The Govt has abdicated to the RBNZ on this issue.

[eri]

if an increase in supply

is going to be affordable

we need a change of council + planners

[speights boy]

if an increase in supply
is going to affordable

What is your definition of what is affordable ?

[Damap]

I understand the logic inside a Nirvanic bubble but I don't know if in reality supply would fix it you know. Look at OZ for example. They have many areas in many cities where they build like crazy and they all sell and all go up in price. Those same areas have hundreds of older homes no one can sell at a decent price. I know Oz isn't NZ but as people have more choice they get fussier. So some heat may come out of the Auckland market but desirable locations and quality reno'd homes are likely to keep skyrocketing I think. They are trying to solve flawed human nature. I just can't see it.
The same thing that makes someone pay 10 mil for 2 mil site on Paratai Drive, makes doting husband pay 100K more than he should for the house his hot new wife "has to have".

[skid]

A change in legislation (foreign tax?) like Singapore,could inadvertently mean that ''giving up'' was not such a bad thing after all.

[Leftette]

Thank you, skid.

I just see pressure mounting on them (Govt/RB) to do something other than increase supply as that just takes too long, and some would say impossible anyway - to keep up with population growth.

And I see that day coming soon.

The more headlines I read moaning about the price of houses the more convinced I am that keeping one's powder dry is the wise move.

I was in the UK recently. Property outside of central London actually looked pretty cheap by comparison to Auckland. Pity the yields are so bad.