[tyhapus]

Hi all

Has anyone got any information on the state of the NZ property market?

We are selling our house in the UK and had to reduce the price several times now.

This pill would be easier to swallow if we could assume the NZ property market is suffering/likely to suffer in the same way, so that our reduced capital will go further over there.

We aim to rent for 6 -12 months anyway, so I guess It's about what the property market might do in this time.

I did read somewhere that it had reduced by 5% over the last 12 months - but is that pattern going to continue?

And while we are on predictions - anyone got 6 numbers for Saturday's lottery?!!!

Cheers all

tyhapus

ITA Submitted 7th Oct 2008

[mylesdw]

Hi all
This pill would be easier to swallow if we could assume the NZ property market is suffering/likely to suffer in the same way, so that our reduced capital will go further over there.


It is suffering in exactly the same way. The thing that will make the most difference to you will be the exchange rate which has shifted 10% in your favour over the last couple of months so what you lose in reducing your price you may gain back in the exchange.

[Spooky]

Prices are definitely falling. I have been closely monitoring a number of houses online, and I've seen advertised prices fall by 10-15% over the last 4 months alone. And mind you, there's still room for negotiation/ bargaining that could pull down the sale price even lower by 20%. :nice1

[DanFromCali]

in the tank

[Nolan]

Any possibility to turn your UK home into a rental income? When the market turns around the possibility to sell might be more favorable. Anyone else turn their home into an overseas rental income??Hi all

Has anyone got any information on the state of the NZ property market?

We are selling our house in the UK and had to reduce the price several times now.

This pill would be easier to swallow if we could assume the NZ property market is suffering/likely to suffer in the same way, so that our reduced capital will go further over there.

We aim to rent for 6 -12 months anyway, so I guess It's about what the property market might do in this time.

I did read somewhere that it had reduced by 5% over the last 12 months - but is that pattern going to continue?

And while we are on predictions - anyone got 6 numbers for Saturday's lottery?!!!

Cheers all

tyhapus

ITA Submitted 7th Oct 2008

[Debbie]

My neighbour is a real estate agent and I asked her the same thing this week, (my parents will need to be able buy here after taking a drop in the UK). Her reply was this:
The value of NZ houses has not dropped but sellers expectations of their homes value have become far more realistic. When we brought, (2 yrs ago) sellers thought their homes were worth a fortune and chanced their arm asking stupid prices, values went up so quickly there was a lot of very speculative pricing. Now, there are less properties on the market and those on want to sell. As a result they are more realistic about their price and keen to take good offers rather than thinking they can do better.

Debbie

[Milliemoo]

My neighbour is a real estate agent and I asked her the same thing this week, (my parents will need to be able buy here after taking a drop in the UK). Her reply was this:
The value of NZ houses has not dropped but sellers expectations of their homes value have become far more realistic. When we brought, (2 yrs ago) sellers thought their homes were worth a fortune and chanced their arm asking stupid prices, values went up so quickly there was a lot of very speculative pricing. Now, there are less properties on the market and those on want to sell. As a result they are more realistic about their price and keen to take good offers rather than thinking they can do better.

Debbie

LOL That sounds just like what an estate agent would say :D

The value of a property is determined by how much someone is prepared to pay for it. Factor in supply and demand and Fanny's your aunt.

When properties were at their peak, there was very little supply and plenty of demand so people were prepared to pay more, sellers had high expectations and that kept pushing the value up. Then it gets to the point where it just gets silly and the cost of servicing your average mortgage from and average (dual) income, becomes unrealistic. Add to that global financial turmoil, lack of credit and tighter restrictions on lending, and all of a sudden the demand dries up, the supply increases and values start to drop. That is what we're currently seeing in the market and IMHO we'll see drops of 25%-30% on values from their peak over the coming months.

I'm watching properties in Devonport that have sat on the market for months and in some cases, reduced their asking price by up to 18%. This in a suburb where only a year ago I got a lecture off one of the local real estate agents about "understanding that prices in Devonport will never go down". Nuff said!

Milliemoo

[IanR]

NZ's economy, like that of the the UK, has been built for the last few years on consumers borrowing overseas money which was backed by rising house prices...maybe time to smell the coffee...

Why anyone wants to buy here when rents are aften less than 50% of mortgage payments beats me... Oh, yes... house prices always go up ... LOL...

[Ambrosian]

Has anybody had experience of buying a house in NZ outright with cash? Would it make it easier to negotiate a lower price as have had experience of an estate agent in NZ (admittedly before this latest downturn) telling us that cash doesn't talk. Pleased to hear any views on this.

[benandclare]

Has anybody had experience of buying a house in NZ outright with cash? Would it make it easier to negotiate a lower price as have had experience of an estate agent in NZ (admittedly before this latest downturn) telling us that cash doesn't talk. Pleased to hear any views on this.

In the current market Cash is King and IMHO where ever you are you'll be able to demand a lower price if you're a cash buyer

[Wooly_Cow]

This week a news report sugessted a further drop of 15-25% in Kiwi house prices. The exchange rate is also forecast to stay closer to $3 than $2.50 or maybe even greater than 3 as people seek larger countries currencies (for the next 12 months) but fluctuates wildly so if you are transfering cash stay alert and flexible.

Mortgage rates here are the highest in the developed world (so I am told).

...but there are a lot more rental properties here than in the UK so more choice = often better quality and lower prices BUT of course there are exceptions.

From a non-financial point of view my advice, if you haven't ever lived in New Zealand, would be to rent for the first 6 months at least until you know where you are looking to live. Schools here are mostly zoned and again vary in their quality so same sort of issue as the UK regarding choice of house to live.

Just a few thoughts

[martin/dee]

what is it like to get a mortgage in new zealand? here in the uk at the moment is ridiculous theres no way in hell we would get a mortgage well not at a decent rate anyway :D was just wondering what your experiences were like getting one, trying to get one

edited to say that was meant to be a speparate post can someone move if needed thanks :D