Most of the apartments on offer were larger units that could have appealed to owner-occupiers or investors and all sold under the hammer

Sadly, Colonel Cheesemaster and I rarely converse these days, I do miss our little chats.

It's much more fulfilling to try to improve oneself rather than to mock others, try it

She certainly went "all in." I think she needs to take personal responsibility.

Also building a buy and hold property investment portfolio is being sold by many as a panacea for those looking to fund their retirement, and those who have insufficient savings for retirement.

1) That is fine in the beginning of the property price cycle when properties have sufficient yields to have positive cashflow and be positively geared.

2) Then this attracts a number of new property investors (and lenders who have financed them) who drive up property prices. It also attracts property traders who buy, renovate and resell for profit. It also attracts capital gain oriented investors. Some residential property investors become residential property developers by adding new dwellings to their properties with vacant land (typically a house on a large section).

3) The higher property price allows aggressive property investors to revalue their property portfolios and then borrow more money to maximum allowable LVR's (aka recycle equity / equity release) to use as a deposit on the next investment property purchase, typically financing with interest only loans.

4) repeat steps (2) & (3) above a number of times, until conditions in step (5) are apparent. Note that interest rate declines since 2006 / 2007 has allowed steps (2) & (3) to go on a lot longer.

5) Property prices continue to rise to the point where properties financed on maximum leverage and interest only loans become negatively geared and have negative cashflow.

6) Capital gain oriented investors with high income levels continue to purchase investment properties even though they are negative cash flow. Property traders continue to buy properties to renovate, and resell for profit.

7) Meanwhile as property prices rise rapidly, owner occupiers and first home buyers have a fear of missing out and feel compelled to buy or they will miss out.

8) Those cashflow oriented property investors unwilling to buy at negative cashflows then buy in areas with higher rental yields which allow properties to be positive cashflow - this has likely driven up property prices in former high yielding locations - for Auckland property investors, first the move was to Hamilton, then other areas further abroad - more recently it has been Hawkes Bay, Kawerau. Kawerau has been one of the locations with a low price point for property investors - since 2014 the average property price have risen 95% - now imagine the impact on that with leverage. For property investors with 62,000 of available capital to put down as a deposit, they can still buy in the Wairoa district (lowest price point) with current 65% LVR's.

9) In their search for returns, and as LVR'S on residential property become the same as commercial property, some residential property investors start venturing into commercial property investments. Increased investor demand for commercial property drives up prices, particularly for those at lower price points.

10) Then something unexpected causes the music to stop ...

Linda Schmidt is in the shit.

Yeah, how white do you need to be before you're not called a foreign buyer....pinky white???

how does that bother you.. spend time to up skill yourself, than worry about others..

dgz, you're back.. have you cleaned yourself up.. you dont want to get an infection, do you..

With asking prices plummeting it will be interesting to see if those who think they are buying and getting a good discount at the moment feel the same way in a few month time.

I'm guessing today's discounts will be considered over inflated in hindsight.

Still predicting a 20-25% price drops from peak in Auckland

pretty sure he's got heaps of online friends.. in the name of playing chess..

Anyone with a spreadsheet knows housing is a 1 way bet.

Based on current trends (2% wage inflation and 8% house price), in 30 years from now the average salary in Auckland will be a whopping $145k and the average house price will be a mere $9.2 million.

A person on the average salary will need to save $1.8 Million for a 20% deposit on an average house or 13 years salary. That leaves them with a $7.4 million mortgage, by then we will have 1% interest rates and 60 year loan terms so the weekly mortgage payments will be $3154 out of the $2000 per week they take home.

The problem is, in 13 years time when the person finally saves up that $1.8 million for a deposit the average house price is now $25 million and salary is $190k. The banks go "yeah okay you have a good savings history 7% equity is fine", so they lend them $23 million at 1% over 60 years. Mortgage payments are now $9804 per week out of their $2600 take home pay.

You'll be before me, so by the time he's done with you, we may have to start the rosary

What’s doom and gloom got to do with it? I am merely commenting on your strange property porn addiction......it’s the most extreme case I have ever seen