heather902 wrote:

Well, what is average?
I'd say my Son and his partner are earning average money. they are both 23. and both have student loans. they have also both worked for a quite a while and contribute a fair bit with their kiwisaver to their deposit as well as their savings, and I'm giving a small gift. They are also pooling resources to buy better with another couple who also are working and have saved. Doing the maths both couples think they will be investing more wisely to buy a better quality property/area. 4 beds 2 bathrooms 2 lounges, so they can have separate living spaces.

The only thing that is stopping most young able bodied people owning a home is themselves.

Might I suggest that they don't proceed with that idea. I can almost 100% guarantee it will turn to absolute custard and there will be no winners.

supernova2 - 2020-12-17 20:13:00

supernova2 wrote:

Might I suggest that they don't proceed with that idea. I can almost 100% guarantee it will turn to absolute custard and there will be no winners.

My Sister is the Lawyer who drew up the property sharing agreement, she commonly does this and is well aware of all of the pitfalls and how you remedy such... and which party she would represent should something go awry. But in her experience those problems don't commonly occur. Most people successfully property share, especially short term.
Banks don't lend when there is high financial risk, so the fact that they got finance offers from several lenders means this is no more risky financially.

heather902 - 2020-12-17 20:22:00

All the people screaming for the govt to do something need to stop and think.
An investor is someone who purchases something - anything - with a view to it appreciating in price and generating some income for the purchaser. those people pay tax on their earnings. The concept of a capital gains tax is totally unnecessary for those investors.

The same applies to "property developers". They buy, they improve, they sell, they pay tax.

Then we have "landlords". They are in the business of providing accommodation. They pay tax.

None of these people are responsible for the increase in house prices. None of them will be buying where no one wants to live.

The ONLY driver in house prices is supply and demand. As long as people want to live where there are insufficient houses they will pay too much Another poster said there are houses in Danniverk. But are there any jobs for all these young people who say they can't afford to live because they have a student loan.? How many of these new house wanabe buyers are running about in newish cars? I know someone who increased their mortgage just last week so they could buy a NEW Ford Ranger. They have absolutely no use for a ute but it looks "flash" to drop the kids at school.

I noticed on the news the other day students at their graduation ceremonies saying "great I've got the degree now I need to find a job". What's the % of degree holders who work in a different field to their degree?. Can't remember but it is significant.

The only people who need to do something about the "housing problem" are the moaners who have their priorities all upside down.

supernova2 - 2020-12-17 20:32:00

heather902 wrote:

My Sister is the Lawyer who drew up the property sharing agreement, she commonly does this and is well aware of all of the pitfalls and how you remedy such... and which party she would represent should something go awry. But in her experience those problems don't commonly occur. Most people successfully property share, especially short term.
Banks don't lend when there is high financial risk, so the fact that they got finance offers from several lenders means this is no more risky financially.

Sorry but I simply don't agree.

Having considered your statement that your Sister has decided which party she will represent when something goes awry I wonder if the other couple obtained independent Legal advice? If so, I hope it wasn't from someone recommended by your Sister.

Did your Sister happen to mention how much the fees will be to sort out the mess? The simple solution is for one couple to buy the property and the other couple to be flatmates.

From your initial post it would appear, prima facie, that the parties are purchasing with a view to selling at a profit. I would question the legality of using Kiwisaver in such a situation. The profit on sale will be taxable.

You said you were contributing towards the purchase. Have you obtained Independent advice as to what will happen to your funds when it goes awry?

With respect, I think the advice given by your Sister is negligent.

supernova2 - 2020-12-17 20:50:00

Next little problem might just be the earnings cut off level for the 4 people involved if any of them are hoping to use Kiwisaver. $130,000 gross is not a lot for 4 people. The minimum wage is far more than that.

supernova2 - 2020-12-17 21:02:00

supernova2 wrote:

Sorry but I simply don't agree.

Having considered your statement that your Sister has decided which party she will represent when something goes awry I wonder if the other couple obtained independent Legal advice? If so, I hope it wasn't from someone recommended by your Sister.

Did your Sister happen to mention how much the fees will be to sort out the mess? The simple solution is for one couple to buy the property and the other couple to be flatmates.

From your initial post it would appear, prima facie, that the parties are purchasing with a view to selling at a profit. I would question the legality of using Kiwisaver in such a situation. The profit on sale will be taxable.

You said you were contributing towards the purchase. Have you obtained Independent advice as to what will happen to your funds when it goes awry?

With respect, I think the advice given by your Sister is negligent.

You've got it completely wrong. I could answer you point by point. but i will say a few things, they are going with their eyes open. they know the risks, the don't expect huge profits or any, they will all be living in the property (so expectations mean nothing).... and if you actually knew a thing or two, you'd know my gift, required me to sign a form stating there was no requirement for repayment, which is completely true.
Its up to banks to decide if their kiwisavers are ok to be used in this situation. FYI you don't need a property sharing agreement for banks.

Edited by heather902 at 9:22 pm, Thu 17 Dec

heather902 - 2020-12-17 21:15:00

and furthermore, get with the programme this is a common place type arrangement. which more and more banks are getting onboard with. Young people are completely capable of negotiating the property market. even in a shared situation.

heather902 - 2020-12-17 21:20:00