Invercargill the cheapest major urban district, Queenstown-Lakes the most expensive

Can't afford Tga? Lots of ex farmers retired to Tga . Decided that was a huge mistake and shifted back over the hill. Matamata isn't my idea of a good place but most amenities are there and within easy walking distance.

Lowering the price is probably a waste of time ATM if almost no one is looking.

"I have property up for sale in Rotorua low turnout at first two open home but I ain’t having a fire sale.  It can sit on market until sensible offers come in.  "

There could be more selling competition coming soon.

Great link - so when does this get underway, I wonder?  And what might make it happen?

The only way that you can re-industrialize the economy is to prevent all of this unearned income, this free lunch income, the land rent, the interest charges, the monopoly rent. You want to prevent that from being subsidized by the politicians that are put in place by bank contributions so that all of this rent can be paid to the banks.

If there is unearned income, obviously some houses and some locations are going to be better. You want this to be the tax base. If it’s the tax base, it’s not going to be capitalized into higher prices.

RADHIKA DESAI: You mean a land tax?

MICHAEL HUDSON: Yes, a land tax primarily.

Yes since about 1976 wages as a % of economic production has dropped around 10%. Replaced with debt

Beanie - haven’t we got to that point already?   Most boomers are already well into retirement, and the last straggler boomers are well over 60. 

we will simply see more immigration to increase workers who will be joining kiwi saver, working force i believe increased by 3 percent last alone.

Most kids of parents with house already have their own house and have debt, they need to sell the place to payback their own debt.    Tax and income wise its not worth renting out with yeild's at 3-4% and your own mortgage at 7%.

I saw a do up on 700 sqm sell just over 1 mill on Saturday.    It was a gd buy if you semi traddie and redo yourself, or just wait and bowl and build 3 on the site.

Not a strategy i would follow at this point but multiple bidders where active.    Low end AKL property is selling its the 1.7-2.6mil type range thats pretty dead in terms of sales.    This IMHO is why you are seeing so many Auckland Central selling below CV. The market has moved a long way, especially for rundown big sites close to city (developers not active vs bidding hard in late 2021).

In the case of the developer who bought my house, they have moved in themselves and are waiting it out, rather than take the $1mil hit to get out.

They did tidy it up inside and outside before moving in, probably upgraded the show curtains....

I agree, they have also financial stability in their remit, and putting the OCR up to 6% might have significant implications in this area. 

I actually do not believe that they will raise at all - yes they will come up with some kind of hawkish statement, but that will be it.

I think that they will keep the OCR on hold until the second half of the year, when they are actually going to cut once or twice, by 25 pbs each, towards the end of the year. 

With current sticky inflation on one side, and relatively high interest rates on the other, it is now a very fine, delicate balancing act, and the RBNZ will be extra careful both ways.  

I think that the hugely expensive price to build is a major part of the problem in the housing market. Opting out of the market and building is a pressure valve release for the market, usually a good number of buyers opt out of the real estate market and build their own house often after months of not finding what they want at a reasonable price. Very few are doing it now.

At the other end, banks seem to be not applying normal rules to defaulting loans, we are seeing very few forced sales dispute anecdotes of  significant stress. The whole thing feels like more and more pressure is building in the market, as indicated by the very large numbers of housing stock for sale, but the normal outlet valves of forced sales and buyers opting out to build new no longer happening.

Great ad hominem conversation right here. You call it banter?

See above

So much Entitlement Mentality to free money from housing where we should have ambition and enterprise. What a disappointing lot of folk, bludging off productive society.

How do you "rinse" your tax bill through PI Averageman ?

Yep.

Half considered buying an apartment when I moved to Wellington a few years ago. A large chunk of them had body corporate fees to the tune of $20k a year, which seemed to reflect a need for strengthening to be bought up to standards regarding earthquakes.

If you'd like to pay that on top of a $450k mortgage for what was on offer, you need to get your head checked.

Thanks

If this is the case its a right royal mess. It seems to me the RMA or whatever was in existence at the time allowed subdivision followed by a BC, built, then followed by subsequent flooding ,a BC can still be obtained for a new dwelling without mitigation by raising floor levels. The 1800 odd houses had BC after the floods? Maybe I've missed something.

The above clause still allows the council to refuse a BC.

The situation then arises the original subdivision is still valid, you own the land, but now can't build on it.

Maybe Kate could have some input here. She seems fairly knowledgeable on this type of situation.

Due diligence is vital. Planning maps need to checked before buying any property to assess known hazards listed in the district plan.

 

In the case of consented subdivision that has not been built on and new hazards being identified it’s important that some solution is found to stop the building happening…surely these houses would quickly become uninsurable. It may be that district plan rules need to be changed to change the status of this land but that would require a significant process including public notification… maybe what’s needed is a change in legislation… current owners would surely need to be compensated. We are going to get close to wiping out large areas that could possibly flood based on NIWA modeling.

"major shake up in consent costs"

For a new build, say a second dwelling on an existing section. I understand  Akl only tell you after you have submitted the dwgs what the consent costs will be. For common or garden new residential house in NP there is a fee structure based on the value of the build so you know the BC costs in advance. There may be additional inspection costs over "standard" inspections built into the fee but these are very unlikely to be an additional major expense.  The only time I see a problem if the council building inspectors are standing around and picking their nose in the office and their manager needs to make budget so insists on additional inspections.

There are just no buyers in the market and house prices are still easing - the REINZ data is out tomorrow. Early indicators from them ( primarily stock inventory) and other Auckland data ( most notably the Barfoot and Thompson monthly report) suggest we are about to see more drop in the HPI. No one will want to build a house that is worth significantly less than the build cost when they take possession. The housing market will have to stabilise and building costs will have to reduce as happened after the GFC to get building happening again.

..by an inability to pay the land prices asked. Land price drops.  That's one way.

Secondly..an increase in supply. Not from new builds but from distressed sellers and boomers and landlords getting out.

10 buyers for  5 houses is one thing.  5 buyers for 10 houses and it all changes.

It’s the land component that’s the variable factor.

the land will crash and building costs may plateau.

$750k for a section in drury?anyone?

"when you consider what it costs to build"

Costs of construction relative to the market selling price matters to builders / developers / product manufacturer / seller to assess the product's margin and profitability. Costs of construction are of little relevance / consideration to most buyers.

Similar in other industries.  If you’re a purchaser of any product or service (e.g apparel, mobile phone, motor vehicle, auto repair, hairdressing, etc) how often do you think about what is the cost to manufacture or the retailer's cost when you buy?

"At current interest rates people can't afford an existing or a brand new property. Something has to give somewhere."

Many highly leveraged borrowers are hoping that the variable that moves the most is interest rates.  There is a lot of "hopeium" by leveraged owners, and also being promoted by property promoters with the vested financial self interests. 

Welcome John!

We'll soon be the majority here

"More population, not enough houses, prices will continue to rise "

Many property buyers and the general public believe the above narrative. There is a genuine common misunderstanding of the linkage between house prices and the two types of demand. 

This common misunderstanding is commonly repeated by property promoters with their vested financial self interests. 

As long as Aussie and cashed up Jaffa's are buying you may be right. Any massive downturn in the Aussie and Auckland property ponzi could see this swing wildly. See what happens...

Read the article, all areas have increased bar one. Anyone who bought a few months prior to the election is at risk of making some very serious money. Particularly near growth areas like Queenstown or Coatesville.