60 minutes and the australian property market crash

[Don't believe the Hype]

If you are selling into a hot market you will probably end up buying in one too.

maybe - but you're not recognising 2 things 1) The skill in negotiation - what some here call 'finding a deal' 2) there is not ONE market - there are many many markets... while some are hot... others are not.

[Bluecoat]

I was offered ridiculously high $$ for investing recently and it was really tempting but it just didn't feel right plus I was getting subtle hints too like timely posts on here (in particular Graeme's) and watching a doco called 'The Super Rich and us'. I suspect NZ will feel some pain maybe in the regions if the properties end up stupidly overvalued etc. Where we are in Kapiti, properties have only just started to skyrocket and there's definitely a sense of panic - people feeling like they must grab what they can fearing they'll miss out.

cheers,

Donna

You cant time the market so as long as your buy well with cash flow why does it matter. Only if you gambling. Same goes for people with cash , if you buy and hold the land subdividable land in Auckland and it has income property as well.

[primal]

Can this happen in nz.
According to the property cycle, when there is boom in property, there also gonna burst sometime.

[donna]

You cant time the market so as long as your buy well with cash flow why does it matter. Only if you gambling. Same goes for people with cash , if you buy and hold the land subdividable land in Auckland and it has income property as well.

Agree - many are getting pulled into panic buying. It had me going for a while there too - believing I need to buy up quick, accept lower yield etc to get a jump on everyone else and rising property values.

cheers,

Donna

[Davo36]

I have a friend who just bought her first house in Hamilton. Just to get on the ladder. They can't afford anything in Auckland and are renting.

This sort of stuff makes me think we're near the top of the cycle.

[Wayne]

I have a friend who just bought her first house in Hamilton. Just to get on the ladder. They can't afford anything in Auckland and are renting.

This sort of stuff makes me think we're near the top of the cycle.

That and the property seminars etc.
Seen it before I feel.

[Davo36]

Yeah every time I'm in the car with the radio on the property ads are on.

[Cpt707]

......if the SHTF what's the Plan..???

[Tomo]

Nikki Conners has certainly stepped up the advertising with the TV campaign and new book.

[PTWhatAGreatForum]

There is a whole bunch of people here who should let the question/answer around the 2 minute mark sink in

[BlueSky]

I have a friend who just bought her first house in Hamilton. Just to get on the ladder. They can't afford anything in Auckland and are renting.

This sort of stuff makes me think we're near the top of the cycle.

Its FOMO IMHO

You should see the facebook page Orion started.

If majority in key areas such as AK Welly, HAM, Tauranga and Rotorua are investors who are in buying mode what do you thing is going to happen when they realise they cant service the debt anymore ?

[PTWhatAGreatForum]

......if the SHTF what's the Plan..???

We plan for the worst and hope for the best.

3 adults living in a property with a decent percentage of equity, unlikely to go down in value and well under $100k debt to the bank....

[Minz]

I watched the 60 minutes article, I listen to the media and I pray for the greedy who want to get rich quick. This all takes me back to when I had a visit from Blue Chip Properties (BCP); at the time, I was looking to work smarter and for the life of me I couldn't figure out why I would follow the BCP approach so I went alone. Four properties later, now with only 30% debt over the four, I am looking to sell my central Auckland house and move the main home to London ('burbs only) and be debt free for the main home (can't afford to service a mortgage off our London salary). Interestingly I had a visit from a company similar to BCP (but selling UK properties), no talk was able to convince me it was a wise move to go with them (probably okay but not fitting my risk profile). Personally, I can not see why there will be a MAJOR correction in a great location: huge variety of industries, geographical restrictions, high inflow - housing must meet demand. Clearly yes, things could ease but if sensibly purchased and can be sensibly serviced, I don't forsee a major meltdown (save civil war etc).

Buy in a one-horse town, see $$$ before your eyes, can't pay any capital off yes S (will) HTF.

[PTWhatAGreatForum]

I watched the 60 minutes article, I listen to the media and I pray for the greedy who want to get rich quick.

I pray for them too. May they come and spend their loot with me.

[JBM]

I seen so many major developers in Queenstown go belly up during 08-09 and really it was mild correction here when we had much higher interest rates

A real correction and it will be much worse to the even more so over-leveraged ...and not only developers but home builders ,home owners ,businesses leverage into the sector

And then with the Dairy sector woes we really do have a perfect storm brewing ..add in the Big Aussie banks issues (huge Resource sector write-offs)