Property market about to 'go bananas' - Auckland

[muppet]

Property market about to 'go bananas'

An Auckland property specialist with close links to the Chinese investment community
predicts a huge inflow of capital into Auckland's property market this year,
despite China's financial crackdown.

Auckland landlord Ron Hoy Fong, who has 30 properties and runs coaching business
Ronovationz from Mt Roskill, said although people based in China now found it harder
to buy since the October 1 changes in New Zealand, he thinks that will soon turn around,
particularly about May when he expects far more investors to seek to buy.

"I'm telling my students to just buy as much as you can,
to get in before the Chinese," Hoy Fong said of his 450-student client base.

Read more at

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11582668

[portofolio]

telling stories

[eri]

"I'm telling my students to just buy as much as you can,

has he ever told them

anything else?

[Nick G]

If your exit strategy is "rich Chinese speculate and I make a packet, otherwise I'm stuck" then you're not investing, you're gambling.

However, I'm guessing...
a) The article author "edited" this to make it sensational
b) Ron knows what he's doing and will be careful to help folks work out the "what they can afford" side of things. Of course that doesn't make for a sexy headline.

I'll stick with CF neutral-to-positive properties in good areas that I can afford to hold through economic shocks thank you very much. I am sure I'll miss out on some easy money but going broke in a crash is a mugs game.

[PTILoveYou]

it is up to the mortgage brokers to tell the students they cant buy more lol

[The_Dog]

And when it all collapses is the mortgage broker happy to be held liable for YOUR poor judgement? lol (load of lunacy)

[The_Dog]

lol (lack of liability)

[The_Dog]

lol (loss of liquidity)

[PTILoveYou]

auckland is not going to collapse, not when the population grows by 2% a year

[aay]

Tired 3 bedroom in rough area of Henderson, under 600sqm section. Sold for 710k. No sign of slowing down that's for sure.

[marklowes]

He 'thinks' chinese money will flow into nz in May.

Yet doesn't have reasons.

Yet the articles outlines reasons why this won't happen e.g tighter restrictions on get money out of china.

IRD numbers stop illegal outflows which considering Chinas $50k per year legal limit must account for almost all the chinese buying with cash in the past few years in Auckland.

My interpretation of this article; Ron and his students are wanting to sell and need to drum up some buyers because they are few and far between and have been since October last year (30% drop in sales, 6% drop in Auckland prices already since October).

[aay]

6% drop in Auckland prices since October? According to who?

[marklowes]

6% drop in Auckland prices since October? According to who?

REINZ statified index. You'll see it in a couple of months in the QV index data too , they're a couple of months delayed.

[Rolo]

Ron made a very bold claim without providing any real hard data or evidence. Such claims can only serve to instigate more frantic buying and lead those with instinctive "herd mentality" to follow blindly.

[Davo36]

Ron made a very bold claim without providing any real hard data or evidence. Such claims can only serve to instigate more frantic buying and lead those with instinctive "herd mentality" to follow blindly.

That's the idea I think.

But more driven by the Herald than anyone.