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  1. #1

    Default 1/2 site X lease close to town OR larger freehold site in west/south suburbs

    Right folks I'm sure this is a question that gets asked here a bit but with the AUP now passed does this change anything?

    Sold our place on the shore to move closer to town. Been on the hunt 4 weeks now. Our price level is upto $1.1m.

    Our choices are either

    - Half sites on a X lease in central suburbs- Mt Albert,Ellerslie, Onehunga, Sandringham. Have the inconvenience of shared driveways and inability to change the footprint. On the plus side less competition with Chinese buyers, good neighbourhoods and great schools. Also good transport links with the ability to drive into town not using the motorway

    - 600-800sqm freehold houses but in south and west suburbs- New Windsor,Mt Wellington, Te Atatu, Mangere Bridge, Glen Eden, BHB. Nice big freehold sites with solid 1960s houses and in the future ability to subdivide or extend. Downside- neighborhoods can be rough with State housing, schools are not as good and also with the increase in traffic in AKL the drive to the city takes a lot longer from here.

    Basically my wife prefers to live closer to the city but I would prefer to save $150k on our mortgage and buy further out. The capital gain piece and the future value of the land is the interesting point for me. Attending auctions and open homes the market still is busy in central especially under $1.1m but there's not as much activity in the outer suburbs.

    Out of the two scenarios which one is likely to have more capital gain as a %?

  2. #2
    Join Date
    Oct 2013
    Posts
    1,613

    Default

    There's absolutely no way to know future capital gain patterns. Total crystal ball stuff. More expensive properties will generally have more capital gain in absolute terms, but as a %? Impossible to say.

    Not to mention, as it's your own house, capital gain is a bit of a fallacy anyway. When you sell, you'll be buying right back into the same inflated market, so your gains don't really go anywhere.

    You need to live where you'll get the best value out of your money, and that's really a personal choice. Doesn't sound like you're comfortable with the outer suburbs; is saving the $150k worth this discomfort for you?
    AAT Accounting Services - Property Specialist Accounting - AATAccounting.co.nz
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  3. #3
    Join Date
    Apr 2016
    Posts
    2,343

    Default

    If you want to buy with an investment viewpoint buy further out, anything zoned MHS or MHU. This maximises the gains. If investment not an issue buy where the other half will be happiest!

  4. #4
    Join Date
    Nov 2006
    Location
    Cyberspace
    Posts
    5,756

    Default

    Quote Originally Posted by Bobsyouruncle View Post
    buy where the other half will be happiest!
    Never do anything other than this.

  5. #5
    Join Date
    Feb 2013
    Posts
    339

    Default

    Seems like you are at crossroads with potential to create wealth and quality of lifestyle.

    Suggest you sit down and figure out what outcome you like to achieve?

    Factor in family/school/transport costs etc .
    I thought the public transport to the shore was better?

    If working in CBD and wanting to live further out , need to factor in commuting times/costs as Auckland traffic WILL NOT get better in a hurry. So thats 10hrs x2 (if both working in CBD).

  6. #6

    Default

    Thanks guys- I really like Titirangi. The area is quite nice especially the northern slopes which are closer to New Lynn and public transport. Can't see much state housing or rentals there either. Unfortunately, the closest station Fruitvale Rd train station looks pretty rough!!! I did hear the drive into town is congested down Great North Rd.

    Yeah I have to keep the wife happy too! Her thinking is if we don't buy in the central suburbs now we'll be permanently priced out!

  7. #7

    Default

    Quote Originally Posted by Jackson77 View Post
    Thanks guys- I really like Titirangi. The area is quite nice especially the northern slopes which are closer to New Lynn and public transport. Can't see much state housing or rentals there either. Unfortunately, the closest station Fruitvale Rd train station looks pretty rough!!! I did hear the drive into town is congested down Great North Rd.

    Yeah I have to keep the wife happy too! Her thinking is if we don't buy in the central suburbs now we'll be permanently priced out!
    That area is fine. Have previously stayed before and was very safe. Once CRL is up, it will cut travelling time into the city by 10 mins.

  8. #8
    Join Date
    Apr 2016
    Posts
    2,343

    Default

    It used to have terribly draconian rules around subdividing and infill. Haven't looked under the UP. Too many treehugging westies for me when I lived there.

  9. #9

    Default

    Rent for a while in the area and then buy?
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