Auckland House Prices fall 4 percent

[SleepySlug]

http://www.radionz.co.nz/news/business/320192/auckland-house-prices-fall-4-percent

What does this mean?

Does this kinda of thing usually happen after the new lending rules?

Do you think this will spread to the regions?

We are buying at the moment, but part of me wants to hold off and see what happens. I am always told what happens in Auckland spreads to the rest of the country. So how long does someone wait?

[orion]

So what if it drops??
Buy something that makes sense at the time you are buying!
If you can get 7.5% - 8% + or create it, does it matter what the price does in the future?
What is your purpose for buying, to buy and pray that prices won't go down?
If this kind of thing puts you off, you haven't got a big enough 'why' you are doing it.

[Learning]

My crystalball's as foggy as yours. It could be a short dip just before a massive growth like 2012 or it could be the beginning of a crash like 2007. No one's going to know until after it's happened. each camp has its own evidence and fact based opinions.

How long do you wait to see if the smoke is going to become an inferno or fizzle out? How long is a piece of string?

[SleepySlug]

Cause I don't want to waste a lot of money if it goes tits up? I dont like paying alot when it might be at the cusp of dropping a chunk.

[Don't believe the Hype]

Cause I don't want to waste a lot of money if it goes tits up? I dont like paying alot when it might be at the cusp of dropping a chunk.

sounds like you want a low/zero risk investment - there is an asset class for you. It's called bank interest.

[big fella]

My crystalball's as foggy as yours. It could be a short dip just before a massive growth like 2012 or it could be the beginning of a crash like 2007. No one's going to know until after it's happened. each camp has its own evidence and fact based opinions.

How long do you wait to see if the smoke is going to become an inferno or fizzle out? How long is a piece of string?

I suggest you read Graeme Fowlers book buying 20 rental properties in one year. If you follow his investment strategy you wont lose sleep over whether prices rise or fall.

[Peter Griffin]

I suggest you read Graeme Fowlers book buying 20 rental properties in one year. If you follow his investment strategy you wont lose sleep over whether prices rise or fall.

Why buy the book? Save your money and look up all the posted articles from Orion. Virtually the same content.

[orion]

Cause I don't want to waste a lot of money if it goes tits up? I dont like paying alot when it might be at the cusp of dropping a chunk.

Best to put your money in the bank and get zero interest after tax and inflation I would think.

[Anthonyacat]

I promise houses will be worth more in 15-20 years than they are now.

Surely you're investing for the long term, right?

[SleepySlug]

I promise houses will be worth more in 15-20 years than they are now.

Surely you're investing for the long term, right?

Thanks,


Yeh we are buying for long term.

[Anthonyacat]

A big part of keeping your sanity in property - and many other things for that matter - is not worrying about things you can't control.

If you don't plan on selling your house two months after buying it, then it doesn't matter what the house is worth two months after buying it. Or six months, or two years. Just don't look. Completely irrelevant.

You need to buy at a price you're happy with (or rather, a price you can afford, and can bear paying) then close your eyes.

In the long term, property is a sure bet. The short term only matters to those who are buying or selling.

[Nick G]

That's sound advice. Look at the long term trend graph, slowly but steadily upwards. There are flat bits, dips, bursts etc but the overall trend is key. So if you buy something with good cashflow and sensible debt ratios (enforced at the moment) you'll do fine.

[SleepySlug]

My crystalball's as foggy as yours. It could be a short dip just before a massive growth like 2012 or it could be the beginning of a crash like 2007. No one's going to know until after it's happened. each camp has its own evidence and fact based opinions.

How long do you wait to see if the smoke is going to become an inferno or fizzle out? How long is a piece of string?

Where would it go though, is there room for more up? I mean people people not speculators.

[orion]

Where would it go though, is there room for more up? I mean people people not speculators.

Just take a moment to actually do some thinking - why do you want the property to go up in value anyway??
It sounds to me like you would be better keeping your money in the bank, seriously. Often I say to people if you want to guess what the market is going to do, go and play the sharemarket or forex, rather than invest in property. But you are also worried about prices going down, so even that is not going to allow you to sleep easily at night.
If you invest wisely in property with safe strategies you will not care what happens to prices ever!

[Frezzinghot]

The only thing i ever regret with property is selling what i should have kept, you will rarely buy at a price you paid 10 years ago. My motto now is buy and never sell. Cashflow is king though and you need to be comfortable servicing debt or it gets tough.

To give you an example in 2012 we brought a section in and built our home in a nice part of Auckland, at the time there were a few sections available as not much was selling, I knew that this was an upcoming area so we took the plunge. Forward 4 years and it has doubled in value, not a lie just hard fact, we could never afford to buy here now under our current incomes. But in saying that all areas are not created equal, finding them is the goal.

FH