[Pakeha Boy]

I have been reading somewhere recently regarding the price of real estate in NZ and how it has risen over 20% in the past year, but cannot keep this upward momentum going for much longer.
The term "NZ is a car crash waiting to happen" was used in this article but I'm damned if I can remember where I was reading it!
So, my question to you, the cyber masses is................

Is it?


I'm wondering if I might be better off renting for 6 months and seeing how it pans out. If NZ is on the verge of ruination - ( ref Don Brashs' South Sea Island economy speech) ( maybe ruination is a tad strong a word) - then it may be an idea to deposit my funds into a high interest acount for a wee while...?
Hell, I'd much rather be buying right after the crash, than just before it what??!!
:eek

[karltsmith]

What is currently happening in the AKl area is a divergence in the property market between the cheaper and more expensive properties. The cheaper properties occupied by lower income families are experiencing a downturn in value. As interest rates continue to rise this is the area of the market that will sufferer first. At the other end of the market prices are still going up! Largely because the more weathly are not so dependent on interest rate rises and are less vulnerable. There are also less homes in this end of the market and so the supply and demand dynamic is the exact opposite of the cheaper end of the spectrum. To sum up the rich are getting richer and the poor are getting poorer...where have I heard that before?

As a general comment though the property market has slowed considerably and shopping around for best value is a must! :nice1

[justin.g.s]

HMMMM. I remember saying that same thing to myself in California 5 years ago. MY god prices just cant keep going up 20% a year.

Well it is five years later, things are cooling with no bubble in site. The last bubble we had in Ca was due to a number of factors including massive job losses and a flood of new housing. Most of the people that were laid off lost there homes. We had nearly a 100k homes that went into foreclosure at the same time as 1000's of new home were coming on to the market.

So unless something dramactic happens to the local economy, no bubble should be seen in Ca.

Part of the reason we can consider moving to N.Z is a result of such a windfall in equity.

[Diny]

Can only speak from our UK experience - but we bought this house 6 years ago for 77k - it's now on the market for 245k.

Now that's what I call an investment !!!!!!!!!!!

Many people have said that you can't really go wrong with property - so far I have no reason to doubt them.

Diny

[Moorf]

Property can be a good investment ... but it's the timing that's crucial.... six to 10 yrs ago buying property in the UK was a good investment... but you wouldn't want to be a buyer NOW!

That will also be something to consider in NZ - looks like holding back for another year might see your £££ going further on the NZ property market.

[Timbo]

Point taken Moorf. It is all very nice having a big fat valuation,but you still have to sell to get your grubby mitts on the dosh.
Our modest little place cost us a mere £45 k so we cant loose really. But the equity is only any good to us if and when we sell.