Auckland House Prices fall 4 percent

[Bobsyouruncle]

Considering the low volume the 4% is irrelevant anyway but as others have already said, why would you care?
You can be sure prices will keep doubling long term so the risk of you losing money is as close to nil as you can be. Unless you buy something you can't afford to hold of course!

[Wayne]

Considering the low volume the 4% is irrelevant anyway but as others have already said, why would you care?
You can be sure prices will keep doubling long term so the risk of you losing money is as close to nil as you can be. Unless you buy something you can't afford to hold of course!

Yes prices will double long term - just depends on the term.
But whether that makes it a low risk investment depends entirely on your last statement.
If you are forced to sell you could be in deep do dos.
How will you know if you can't afford to hold?
Well make sure it pays for itself now for a start.
Then stress test with a higher interest rate - like 7%.

[Bobsyouruncle]

Yes prices will double long term - just depends on the term.
But whether that makes it a low risk investment depends entirely on your last statement.
If you are forced to sell you could be in deep do dos.
How will you know if you can't afford to hold?
Well make sure it pays for itself now for a start.
Then stress test with a higher interest rate - like 7%.

Couldn't agree more!

[Wellington Broker]

There is usually a slowdown after the now annual RBNZ rule changes but not to this extent. These RBNZ changes are far more significant than anything in the past and are having a real impact compared to some of the others which were easier to get around. Also the banks stopped lending on foreign income in mid-year which will be having an impact.

[SleepyTiger]

I am keeping an interested eye on it.

Last year's change of immigration rule for parent category will eventually have some residual impact on the market too.

Moreover, Chinese government is tightening $ exchange policy yet again - implementing stricter punishment from new years and specified money transferred to overseas is not allowed to buy properties. Of course there are ways around it , but it doesn't matter what "expert" says, it is getting tougher out there.

Looks like the stars are aligning.

--------------------
China’s foreign exchange regulator said over the New Year weekend that it would tighten scrutiny on foreign currency purchases at domestic banks and step up punishments for illegal outflows from January 1, 2017.
As part of the new restrictions, foreign currency purchases by individuals at banks “are not allowed for overseas property purchases”, the China Business Network reported on Monday.

http://www.scmp.com/business/article/2058749/chinas-newly-tightened-forex-rules-unlikely-stem-overseas-property-binge

[Bobsyouruncle]

All the economists this morning basically saying the same thing, volumes down but prices going to increase in Auckland.

[McDuck]

All the economists this morning basically saying the same thing, volumes down but prices going to increase in Auckland.

I just wonder how these houses are going to be paid for.
Money is getting tight.
And money is exceedingly disloyal.
It will leave a small little backwater country like New Zealand the second a big flashy country like the US offers it a slightly better home.
Money is such a tramp. Ha.

[Bobsyouruncle]

The economists say that investors should have found a way round LVR restrictions by end of first quarter.......

[Aston]

The economists say that investors should have found a way round LVR restrictions by end of first quarter.......

FANTASTIC... That means house prices will get out of control again. But that's O.K. because that will mean your net worth will increase. Right Dean?

It is just a great pity that Property Investors, by default, become landlords because the main focus of private landlords is to increase their own net worth. Whereas a landlord's focus should be their tenants.

The more I read on this forum, the less I like landlords. Yes, I am a landlord and Yes I consider my net worth but not at the expense of my tenants.

[ammar]

New Zealand is still going to be a desired place to live for immigrants.

[Kbkiwi]

All the economists this morning basically saying the same thing, volumes down but prices going to increase in Auckland.

Anyone basing their investment decisions based on the views of economists needs to read a history book.

[Aston]

New Zealand is still going to be a desired place to live for immigrants.

Well if Winston becomes King Maker this year maybe he will be able to put an end to that.

[Tomo]

New Zealand is still going to be a desired place to live for immigrants.

true while unemployment is low.

Nz is still a low wage economy with comparatively low productivity, around 20% less than the OECD average, therefore wages cannot rise significantly as businesses compete in the global marketplace. Should better prospects arise in other countries NZ will become less desirable for migrants despite our "lifestyle" opportunities.

[McDuck]

Well if Winston becomes King Maker this year maybe he will be able to put an end to that.

Well, if Trump can get in on that ticket, there's no reason why a New Zealand politician can't tap the same sort of feeling.
Winston does deserve a shot, he's put in the hours.

[SleepySlug]

All the economists this morning basically saying the same thing, volumes down but prices going to increase in Auckland.

What volume?
I just read inventory has been growing but sales are slowing