Auckland slowing down

[Frezzinghot]

Why wait, if it makes sense to buy now with good interest rates why not lock it in. Especially if you find a deal in the better suburbs of auckland.

FH

[BlueSky]

Why wait, if it makes sense to buy now with good interest rates why not lock it in. Especially if you find a deal in the better suburbs of auckland.

FH

Thanks FH. Which area and what will be your IP criteria?ie yield, future potential ar the cozt of current yield?

[Damap]

I dis agree only on the "better areas bit". Anywhere in Auckland is fine if you are low risk. One could argue more money to be made buying in lower areas as they get more dragged up as the median rises.
The places to avoid are really overblown areas, (unless you can steal something somewhere).

[Wayne]

I was thinking of doing flips but new tax rules OCT 1 killed it pretty much

I was also wondering how the 2 year rule changes the tax you were going to pay on flips?

[Orkibi]

There is no change for traders what so ever... We pay GST and income Tax already.

Unless you were planing to start trading and avoiding tax there is no change.

[Damap]

There is this persistent myth that "real estate" is tax free income.

[BigDreamer]

I was thinking of doing flips but new tax rules OCT 1 killed it pretty much

Wow - this just shows how many people are ignorant of the existing tax rules thinking that the 2 year 'new' rule would make any changes to trading/flipping.

[Maccachic]

Wow - this just shows how many people are ignorant of the existing tax rules thinking that the 2 year 'new' rule would make any changes to trading/flipping.

There are loads of them its quite surprising.

[motoman]

Yeah Auckland prices are going to continue at 30% forever, and all the immigrants can afford to pay $5k a week in rent on their plumbers wage

Sorry but I think SOME people still have their heads in the clouds. especially people who hadnt bought property prior to this bubble.

When I was developing in OZ, I was happy with the 6 month rule for CGT, quite easy to live in and renovate over 6 months and move on. In saying that the government need to catch up on income made by people over the last decade that hasnt been taxed. So Im not anti the changes.

[ivanp]

I reckon plumber is not in the Long Term Skill Shortage list. At first glance, occupations from the list have salaries twice higher than country's average.

[motoman]

Ha, well my Mrs was lucky she was on the skill shortage after completing 8 years at uni in October (and various other countries around the world) not so lucky were a number of other doctorate friends. Ummmm, I the skills shortage list is farcical. Even if its not, the people who sped 8 years at Uni to earn $70k cant afford the rent in Auckland. So what shall we do, I know, build apartments and totally Ghetto the city. That will improve the livability ranking of Auckland. Smart.

Either way Auckland needs plumbers, and waiters and street cleaners, immigrants or not. Perhaps we flip society and start paying the people that do the hard work the good money, theirs a new policy. Smart.

[Wayne]

At first glance, occupations from the list have salaries twice higher than country's average.

So they can afford $5k per week?
Is that what you are saying?

[motoman]

Of course my $5k a week was taking into account another 15 years of 30% growth lol. But even $750 is unaffordable.

I love the argument from non savvy investors "thats fine with me, they can move elsewhere", oh so you going to clean your own waste pipes, compact your own rubbish at the tip, clean the streets, toilets, rubbish. All the honorable hard working jobs will be filled with Investors.

[ivanp]

I don't know where the hell $5K/week figure comes from.

But hypothetically, if/when the rents will be that high - probably yes, it's recent immigrants who will afford to pay that much, as in general they tend to earn more than kiwis, and often care more about education of their kids, so prefer to rent in better school zones, while sacrificing on other things.

[Wayne]

I don't know where the hell $5K/week figure comes from.

Blame motoman :-)