Unsold residential properties are sitting on the market for longer rather than being removed from sale

So many 2+  million dollar houses in AKL just sitting there.... viewing by appointment (i.e. no one was turning up at open homes).

33,984 listings in November,  at NZ Average of 908k each  = $30.86 Billion NZD worth of houses for sale.

The ardern clown show created approx 18,000 additional bureacratic drongos - when will these be re assigned and how much will this save in money and improved outcomes??

It is instructive to all readers of comments on this excellent forum that right-wing commentators comment most on anything related to residential housing investment.

Methinks there is a strong link between limited financial acumen and right-wing voting. It is almost a form of overt entitlement to riches based, not upon skill, but by the ability to to purchase a sub-returning asset while expecting the government to reward them for voting their way. 

The correlation has resulted in the National Party to be known by another name: The Landlord Party.

You mad champ?

Don’t worry, at least you’re “on the property ladder” 

Even if that game is now snakes and ladders 🙂

Iceman, you should come take a look at the 500k of horse truck I have parked in my truck shed....

You can be negative on property prices short term and still have made buckets from property.

You can make money right now, you just need more of it to make subdivision work.

Careful Ice, you look like your in a flat spin. To much debt...?

If you have to ask you are already stuffed.

"There is huge latent demand for property, but over the last 30 years the reduction in affordable properties for sale (e.g. the first home buyers who move on to their second property but hold the first for rent instead of selling it) both pushed property prices higher and reduced the number of readily-able purchasers."



There are a number of non owner occupier residential property syndicates operating to combine their financial resources to increase their buying power (and borrowing power) to outbid owner occupier buyers in the existing residential real estate market. (Remember, non owner occupier buyers are able to borrow up to 7x DTI vs 6x DTI for an owner occupier buyer)



To maximise the cashflow from the non owner occupier residential property, it has got to the point where these non owner occupiers are:

1) renting out residential dwellings on a room by room basis (rather than the entire dwelling to one tenant such as a family) in order to maximise the cashflow

2) renting out on Airbnb / Book a bach - though some changes on the Airbnb platform may now have reduced revenues and made this less financially attractive than renting out in the long term rental market.



3) adding rooms to rent out



4) adding other dwellings on the property to rent out.

This is been the impact of re-introduction of interest deductibility for non owner occupiers in the EXISTING residential dwelling market.  Some non owner occupier owners are willing to go into negative cashflow for the potential untaxed long term capital gains (i.e after 2 year brightline test which was reduced from 10 years)



The buying advantages of non owner occupiers over owner occupier buyers in the EXISTING residential real estate market:

1) 100% financed purchases of residential real estate (due to equity release / deposit recycling techniques)

2) interest only financing

3) interest deductibility

4) combined buying power of residential property buying syndicates

5) 7x DTI vs 6x DTI for an owner occupier buyer



Owner occupier buyers (especially first home buyers in Auckland without assistance from or access to the bank of mum and dad, and an inability to take on "boarders" or rent out a room on Airbnb) are unable to compete with those buying advantages given to non owner occupier buyers.

its not logic, it came from where all ass clowns magic up things...

> guaranteed is that within a 10 year span it goes nuts at some point.

Doubt it. Start measuring price growth in gold or BTC terms instead of fiat and you'll see.

Zwifter: "but what is guaranteed is that within a 10 year span it goes nuts at some point."

So speaks a fool that has no idea how DTIs work. (Other readers, if you don't know how DTIs & LVRs work, for god's sake learn!)

Zwifter, are you just really old, mathematically challenged, or are you a real estate agent?

"but what is guaranteed is that within a 10 year span it goes nuts at some point."



I wonder if residential property buyers in say 1994 (i.e. 3 years after peak house prices like the current situation in NZ) were thinking the same way in Japan?



I wonder how many years it took before those property owners began to lose their belief and confidence that house prices would continue to rise at the same rate as in the long term past?



https://fred.stlouisfed.org/series/QJPN628BIS



A recent interview with Ashley Church indicates he is questioning his previously commonly repeated mantra of house prices doubling every 10 years.



https://youtu.be/CWpflvEYhJE?t=496





 

who would be worried running past a parked electric lime scooter.....

first pagers now scooters....      damn be pints of beer soon,

got me worried

Yeah. I get this is new to you. But this tech has existed for 30+ years. And has been used without MSM ever reporting it.

So hold it until you die.

You won't ever loose. ... So let's not talk about opportunity cost ... No. We must never talk about that. /sarc

To be fair though, good investors would not have been buying these townhouses if they were after rental yields.

There is far better buying around.

Meanwhile AT continues to completely munt neighbourhood traffic flow in my area. 

Meanwhile people driving in my neighbourhood completely munt traffic flow in my area. 

Fixed that for you.