Wellington Property Boom ?

[Eugene]

I live here.. and yes, how many coffee shops are jam packed full on Thursday and Friday afternoons from 3pm?

I have lived in both cities, both the Auckland CBD and Wellington CBD.

The numbers in Wellington are skewed, with a smaller middle class than Auckland. IMO this is one of the main reasons that investor ownership is also higher in Wellington than virtually any other province in NZ. We have two PIA's here, which is so confusing that I have (for now) opted to join neither.

Welling is cold, it is windy, there are many people that aren't very polite here and can be a little strange.. but if you ignore the people, catch busses/taxis/trains/drive it can be as easy to live in (or more so) than Auckland. The only thing I miss are the extra curricular activities which go beyond drinking copious amounts of coffee, eating a burger a day or getting drunk beyond recognition Wednesday, Thursday and Friday every week.

If you invest in smart buildings, the earth quakes are not an issue. Growth is a concern and the local government should be doing more to help and encourage young "stars" to stay, develop their businesses here and employ local staff. But the city is very baby boomer gen focused and there is not so much support/entertainment/focus on those under 50 as there is in Auckland.

Fair comments.
Our daughter comes back from Otago uni, meets friends in city centre at weekend - yes, centre, everything is central - meet other groups of friends, they go to cocktail bars because they are sophisticated then bus or taxi home. Wellington and Dunedin are great for that age group

[Eugene]

I'm guessing the main reason Wellington Property values haven't increased is population growth. From the 2006 to 2013 census, there was around 5% population growth compared to 8.5% in Auckland. But I would guess over the last 2 years that Auckland has grown a lot more and that maybe Wellington has stagnated.

In Auckland there are more people, demanding more homes, so house prices are going up.

Interesting website on Wellington predicted growth - http://forecast.idnz.co.nz/wellington/home

Ross

Thanks, helpful.
Even very modest growth works well, our own spreadsheet shows this.
Especially as Wellington is coming off a low base, sideways mostly since 2007

[Eugene]

8% chance next 100 years last i looked into it... More likely than a damaging quake in welly as welly has been prepared for over 100 years for the big 1. Some very solid buildings. You can't build lava/laha/ash resistant buildings.

Welly since early 1900s has had sticker earthquake restrictions on all buildings than anywhere else in n.z.

The recent seddon quakes were of a size felt in welly that leveled cities overseas. Welly buildings by in large undamaged. Last month a building i own in just got a 35% reduction in insurance premiums (some 40k saved per year ) in light of how well it performed, premiums back to pre chch earthquake levels.

Lambton suburb has more workers per sq m than anywhere in N.Z and centralization of mbie and other govt departments over last year has only put more ppl working in cbd.

Auck doesn't have a cbd, so i wouldn't know where to buy apartments as risk of new ones poping up next door too great. Lambton/govt end of terrace already full between water and hills, and has height restrictions in place that mean no metropolis sized apartment blocks ever going up. Plenty of scope in auck 'cbd' to level old buildings and build a 50+ storey apartment complex.

So the risk of having an earthquake is higher than the risk of a volcanic eruption, but the devastation is not total.

[PTILoveYou]

For those who live in Auckland but invest out of town.

Or those who recently moved out of Auckland, live, work, and invest elsewhere in NZ.

I might have bad news for you...

In 5, 10, 20 years time, you will not be able to buy back in Auckland...

[Courham]

You may find this surprising Gary, but many of them probably wouldn't want to move back there

Its not all about capital gains Gary, for 66% of NZ population (70+% of NZ born) its not all about Auckland. I'd have my lifestyle over living in Auckland any day and know many others who feel the same.

Auckland may be getting all the press these days but for many of us there are plenty of other places that are worth investing in

Craig

[PTILoveYou]

You may find this surprising Gary, but many of them probably wouldn't want to move back there

Its not all about capital gains Gary, for 66% of NZ population (70+% of NZ born) its not all about Auckland. I'd have my lifestyle over living in Auckland any day and know many others who feel the same.

Auckland may be getting all the press these days but for many of us there are plenty of other places that are worth investing in

Craig

Well if these people don't back that's fine, or else they will be shocked! =)

[Courham]

That is no doubt true Gary.

Many of parts of NZ have a long tradition of economic refugees (otherwise known as cashed up Aucklanders) moving out and buying very nice properties, having a large nest egg and being able to live a good life after escaping the rat race.

Won't ever match the current levels of immigrants moving in no doubt, but it is a well established pattern.

Craig

[Aston]

For those who live in Auckland but invest out of town.

Or those who recently moved out of Auckland, live, work, and invest elsewhere in NZ.

I might have bad news for you...

In 5, 10, 20 years time, you will not be able to buy back in Auckland...

Thank god for that.

Have you ever ventured out of Auckland Gary?

It's not all about Auckland... Believe it or not, most people who live outside out Auckland choose to do so. They are not in the least interested in moving to Auckland. If they have moved out of Auckland, they will definitely not be interested in going back. Life is less complicated out of Auckland, when I want to go to the other side of town I get in my car and go there. The other day I was held up at the lights for about one and a half minutes, that was very annoying and I will avoid those lights in the future. Do you understand what I am saying Gary?

Also... Believe it or not there people that very successfully invest out of Auckland. I have been investing in property for over 25 years, I have owned property in Auckland but have now sold it. My investments would be far superior than any of your 3 bed boxes. I am very happy with my property investments and wouldn't trade any of them for a place in Auckland. I dread the day that Aucklanders discover this place.

[PTILoveYou]

Thank god for that.

Have you ever ventured out of Auckland Gary?

It's not all about Auckland... Believe it or not, most people who live outside out Auckland choose to do so. They are not in the least interested in moving to Auckland. If they have moved out of Auckland, they will definitely not be interested in going back. Life is less complicated out of Auckland, when I want to go to the other side of town I get in my car and go there. The other day I was held up at the lights for about one and a half minutes, that was very annoying and I will avoid those lights in the future. Do you understand what I am saying Gary?

Also... Believe it or not there people that very successfully invest out of Auckland. I have been investing in property for over 25 years, I have owned property in Auckland but have now sold it. My investments would be far superior than any of your 3 bed boxes. I am very happy with my property investments and wouldn't trade any of them for a place in Auckland. I dread the day that Aucklanders discover this place.

I have been to city part of Tauranga, New Plymouth, Wellington CBD, Rotorua, Chch, Queenstown, and Hamilton (and plenty of small towns in between).

I still like Auckland the best.

Queenstown has it's attraction, but I consider it too cold and no ocean.

[chrisgoh]

In reality, Auckland is considered 'slow' and 'relax' compared to many major cities elsewhere. How stressful and congested can it be in Auckland compared to NY, London, Sydney, HK, Shanghai, Beijing, Singapore..etc? Migrants like Auckland because it has all the infrastructures, connectivity, schools/universities, major MNCs, skilled workforce, jobs and stability (e.g. earthquake & tsunami). Cannot imagine migrants stay elsewhere in NZ if they considered Auckland relatively slow. Almost all places in NZ are beautiful, each has it own character and history. The incentive to move outside Auckland is minimum, unless there are money to be made or personal interest such as retirement.

[Lissica]

Fair comments.
Our daughter comes back from Otago uni, meets friends in city centre at weekend - yes, centre, everything is central - meet other groups of friends, they go to cocktail bars because they are sophisticated then bus or taxi home. Wellington and Dunedin are great for that age group

Both Dunedin and Wgtn are great like that...they have a central hub, where things are happening, not out in the burbs.

You can also head out your door and within minutes you are running up in the hills, on a mountain bike track, or at the beach. In Auckland- you drive to the mountainbike park and it's all flat

[chrisgoh]

In Auckland- you drive to the mountainbike park and it's all flat

This is one major factor why I will not retire in Auckland. The best you can get is Woodhill forest.

[flyernzl]

One factor of great importance to elderly retirees is easy access to medical specialists and hospital treatment.

A problem for places like Kerikeri, Whitianga, Taupo and Akaroa.
A half-hour appoimtment can turn into an all-day trek or even an overnighter.

[marklowes]

Thanks to immigration all auck hospitals are riddled with super bugs that are resistant to antibiotics. I.e long term stay in hosp = u will catch them. the superbugs are originally from india i believe, most staff have them and if healthy are no issue but can be deadly if already sick. Almost killed a family member, turning a bad motor vehicle accident into a 2+ year recovery, kidneys, large portions of gut removed, pumped fill of iv antibiotics of every type and the bugs still present and needing management to this day.

[chrisgoh]

One factor of great importance to elderly retirees is easy access to medical specialists and hospital treatment.

A problem for places like Kerikeri, Whitianga, Taupo and Akaroa.
A half-hour appoimtment can turn into an all-day trek or even an overnighter.

You are absolutely right about medical care. Old folks need that.