Blank canvas

[elguapo]

I've always believed that at the top of the property cycle 'do ups' start being worth more than the completed article.

Getting close now.....

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11457045

[Anthonyacat]

Just the vast number of articles in the Herald about how high house prices are is a big indicator for me. Going along the I've always believed track, I've always believed that at the top of the property cycle people who have no idea whatsoever about property all have their own opinions, and want to parade them everywhere.

I do genuinely hope that there is another dip around the corner. It would be so sad to think that what's currently happening in Auckland is truly just adjusting to the new normal.

[Frezzinghot]

Its just sensationalism, anyone in there right mind would have picked the renovated property, its a no brainer! Mt Eden is probably a little different as you have a slightly different target market, trendy professional couples wanting to create a new home from a blank canvas but to me if I had to spend an extra 300k to put my own touch to a property I would take the renovated property any day, I would change the colour and get a bigger TV, renovation complete. Just shows how ridiculous the current market has become. Cant see it continuing but places like Mt Eden it could be the norm.

FH

[HouseWorks]

I saw that and was gob-smacked, no wonder the vendors of the unrenovated were so "thrilled" (read as delirious). The purchaser of the unrenov was a phone bidding ex-patriate and since the two houses were side by side and auctioned on the same day it's possible he just got confused although it did mention he intended to get it done up but that could still have applied to the other house as well. I don't think we've reached the top yet, maybe in two or three years. Too many areas of NZ are still below water from 2007 and the warm glow has yet to reach there. I think when the boom hits out of the way and unloved areas then probably the clock is ready to strike 12!!!

[Frezzinghot]

Its become trendy to buy un-renovated property don't you know!

FH

[ScottSI]

1.53 million - what would I do???

Option 1
30 acres with 220m2 home with views and 4km to town centre, beaches, mt bike park, national parks, vineyards, cafes etc
Boat for fishing / skiing
New cars
Bach down the sounds
Bach up the lake for ski field
R44 helicopter to get between them.

Option 2
Small house in Auckland needing another 300k spent on it.
Traffic jams
Packed suburban life

No competition - Mt Eden all the way!!!

[Courham]

I'm with you Scott!

Though I'd dump the 30 acres- too much hassle looking after it, unless in native bush, and one of my baches would be in Bali or Thailand!

Craig

[rocket]

Many of these people are professionals who have to be close to metropolis for work. ...and with their salary they can buy prime real Estate ,I don't know what the confusion is? ?
They are buying something which is only going to go up in capital gains. .. Unlike any large semi urban lifestyle block. An ounce of gold is worth more than a ton of iron...

[ScottSI]

Many of these people are professionals who have to be close to metropolis for work. ...and with their salary they can buy prime real Estate ,I don't know what the confusion is? ?
They are buying something which is only going to go up in capital gains. .. Unlike any large semi urban lifestyle block. An ounce of gold is worth more than a ton of iron...

Fair point about work, I guess I should move back to a big city so I can buy an overpriced house, so I can go back to work to service my oversized personal mortgage and work till I am 65 to get my $300pw pension as I have a powerful job that is needed to service all my debts and can't save so can't retire early.

I on the other hand will sit on my arse most of the time watching the world going by and drinking coffee - yes that does exist elsewhere in the country.

Also agree semi urban life style blocks never go up in gains as in New Zealand we don't have urban sprawl it's all highrise apartment living in this country.

PS. Capital gains are only realised in cash when you sell but you still need a PPR.

[ScottSI]

I'm with you Scott!

Though I'd dump the 30 acres- too much hassle looking after it, unless in native bush, and one of my baches would be in Bali or Thailand!

Craig

You can have it all Craig - you still have the 300k for renovation to use up. 200k for Thailand pad (seemed the cost last year when there) and 100k in the bank (4kpa)or a regional rental (10k pa)- income will more than cover you for a few flights to Thailand for the rest of your days!

Sell up now - quit the rat race - life is too short!