| 51 | tweake wrote:
still plenty of kiwis coming back. but i suspect many are buying a 2nd home. money is worthless in the bank and housing is normally a safe bet. interest rates are low. Nope. "In the eight months from April 2020 to November 2020, net migration was provisionally estimated at 5,100." That's not per month, that's for the whole 8 months and counts kiwis coming home. That looks to be down from an average of 50-60,000 per month. https://www.stats.govt.nz/news/annual-net-migration-slows This is some of why I've come to the conclusion it's a bubble which will burst. Edited by loose.unit8 at 10:07 pm, Tue 30 Mar |
| 52 | lakeview3 wrote:
Fomo and cheap money. This is what I put it down to too. Which is squarely down to the reserve bank and this government. Who don't want to reverse their own policies to positively change the market. |
| 53 | tweake wrote:
you can simply play the market.
if people sit and wait, demand increases as there is a population increase. you can simply wait out low prices until demand pushes prices up to what you want.
these days you can do that en mass which dictates prices. another way to put it, people know that because they don't build a new home, it will push their existing house price up, so instead of spending more money, they can make more money. None of which is home owners "manipulating demand". Some of what you just suggested is choosing to not increase supply but it's a bit muddled. |
| 54 | loose.unit8 wrote:
This is what I put it down to too. Which is squarely down to the reserve bank and this government. Who don't want to reverse their own policies to positively change the market. yes they really have exacerbated an already huge problem havent they. Blardy irresponsible on both their parts. lakeview3 - 2021-03-30 22:26:00 |
| 55 | Can't just endlessly keep freeing up land as it uses up all the productive land for growing food. The big cities are getting to the stage where they are so large in area that they need to be intensified. tygertung - 2021-03-31 08:01:00 |
| 56 | tygertung wrote:
Can't just endlessly keep freeing up land as it uses up all the productive land for growing food. The big cities are getting to the stage where they are so large in area that they need to be intensified. most of the ‘productive’ land around here is just people with small 10-15 acre blocks and a few beefies and sheep. A fat lot of good they are to anyone really, plenty of room for more houses though. Any new multi house subdivisions are snapped up by developers and builders with too many restrictive covenants for first home buyers. lakeview3 - 2021-03-31 08:35:00 |
| 57 | lakeview3 wrote:
most of the ‘productive’ land around here is just people with small 10-15 acre blocks and a few beefies and sheep. A fat lot of good they are to anyone really, plenty of room for more houses though. Any new multi house subdivisions are snapped up by developers and builders with too many restrictive covenants for first home buyers. Must be particularly cashed up for a FHB to be looking at buying a newly built house |
| 58 | totally agree bushaay - 2021-03-31 09:32:00 |
| 59 | lakeview3 wrote:
most of the ‘productive’ land around here is just people with small 10-15 acre blocks and a few beefies and sheep. A fat lot of good they are to anyone really, plenty of room for more houses though. Any new multi house subdivisions are snapped up by developers and builders with too many restrictive covenants for first home buyers. I would think that more of this land would become available to sub divide if:
The local authority would let you do it.
It did not take the best part of 12 months to navigate the consent / RMA process.
This consent to sub divide was not so eye watering expensive. Why do city councils charge for consents ? What additional expenditure have they incurred in order to process the application... the people doing the work are on the council payroll, so collect their wage / salary no matter what they are doing. The answer is most likely user pay or cost recovery.. perhaps processing of consent should be seen as a service for the good of all ratepayers / residents and therefore should just be one of the services that rates pay for !!
Some thinking outside of the box is needed to get some handle etc on the current housing situation.. If investors is seen as a problem, then perhaps there should be in addition to the current "disincentives" to investors to buy, there should be "disincentives" to sellers to sell to investors !!
Also required is some degree of "social engineering" to change the expectations around property ownership.. "when it comes time for me to sell my house / home I will make every effort to take full advantages, to my benefit, of all the normal market forces to maximise the price I get for it."
"My entire retirement planning is based on me making a tax free capital gain on the sale of my home". "I'm all for what ever can be done to get more people into their own home or affordable rental properties, as long as it does not impact on me such that they build state housing or the like in my suburb or cover the nice green hills, I can see from my patio, with a sub division of boxes !! " onl_148 - 2021-03-31 10:19:00 |
| 60 | It may be not so good to endlessly sprawl out as there is heaps of infrastructure required to be put in for all the water, sewage, drainage and electricity, and also it makes it terrible for transport. Unless there is going to be trams everywhere like they have in first world countries, you just end up with terrible car congestion as people don't seem to want to ride scooters / light motorbikes like in high population countries, or bicycles like in first world countries. tygertung - 2021-03-31 10:30:00 |
| 61 | tygertung wrote:
It may be not so good to endlessly sprawl out as there is heaps of infrastructure required to be put in for all the water, sewage, drainage and electricity, and also it makes it terrible for transport. Unless there is going to be trams everywhere like they have in first world countries, you just end up with terrible car congestion as people don't seem to want to ride scooters / light motorbikes like in high population countries, or bicycles like in first world countries. Agree - urban sprawl is one of the worst solutions to the housing problem for all of the things you've just mentioned. Cities must go up, not out. |
| 62 | lakeview3 wrote:
Any new multi house subdivisions are snapped up by developers and builders with too many restrictive covenants for first home buyers.
first home buyers should not be buying new houses to start with. the fact that its even possible shows how far out of wack its become. the simple thing is the people that should be buying those new homes (and freeing up their old homes to first home buyers) are not buying them. why would you when you can sit on them for more profit. tweake - 2021-03-31 18:11:00 |
| 63 | onl_148 wrote:
Also required is some degree of "social engineering" to change the expectations around property ownership.. "when it comes time for me to sell my house / home I will make every effort to take full advantages, to my benefit, of all the normal market forces to maximise the price I get for it."
"My entire retirement planning is based on me making a tax free capital gain on the sale of my home". absolutely.
we really need a change to get kiwis away from using the family home as an income stream. however its not the only factor. councils are also guilty of using kiwi homes as an income stream. tweake - 2021-03-31 18:15:00 |
| 64 | tweake wrote:
first home buyers should not be buying new houses to start with. the fact that its even possible shows how far out of wack its become. the simple thing is the people that should be buying those new homes (and freeing up their old homes to first home buyers) are not buying them. why would you when you can sit on them for more profit. That's such a terrible generalisation - there's a wide range of FHBers and also a wide range of new builds. I have a friend who is an FHB'er currently, budget $ 1.4m. And they are not overreaching. https://www.corelogic.co.nz/news/first-home-buyers-but-not-w
e-know-them#.YGQZFmQzYfI Edited by sparkychap at 7:40 pm, Wed 31 Mar sparkychap - 2021-03-31 19:40:00 |
| 65 | sparkychap wrote:
That's such a terrible generalisation - there's a wide range of FHBers and also a wide range of new builds. I have a friend who is an FHB'er currently, budget $ 1.4m. And they are not overreaching. https://www.corelogic.co.nz/news/first-home-buyers-but-not-w
e-know-them#.YGQZFmQzYfI
yes its gross generalisation.
there is many factors in it. big one being interest rate.
the article is interesting, however it does mention "In this post-COVID phase, returning Kiwis and would-be OE’ers have probably made a contribution to strong FHB demand as well." tweake - 2021-03-31 19:59:00 |
