Residential - Boom or Bust

[winner (n)]

No worries as the much lauded Kelly at Westpac says house prices will go up 4% in 2025 and then growth to return to average rates of growth next year with prices up more than 6% in 2026

So looking good.

[Dolcile]

I can't see much - if any - property growth for the next few years.  It is really tough times out there for most kiwis. 

[Shareguy]

Good news for councils and rate payers but owners of leaking/defective homes will suffer big time.

The PM and Building Minister Chris Penk have announced two major amendments to the Building Act aimed at (i) speeding up NZ's sluggish consenting system, (ii) easing the cost burden on councils/ratepayers, and (iii) ultimately lowering build costs (with the average standalone house in NZ ~50% more expensive than in Australia). https://www.nzherald.co.nz

Proportionate liability: The current joint-and-several framework will be scrapped, with liability shared more evenly across builders, designers, suppliers, and engineers. Councils will no longer shoulder 100% of risk, which should reduce defensive consenting practices and ease ratepayer exposure (particularly when it comes to defective building work

[Shareguy]

Got to be good for the housing market.

Interest rates on the decline and now this

https://www.nzherald.co.nz/business/personal-finance/reserve-bank-to-ease-mortgage-lending-restrictions-from-december/3UZYVO3WHZAFBF34LH33TBSKQ4/

Property data for September 2025 has been released this morning showing slight price growth MoM nationally (+0.8% or +1.3% once seasonally adjusted). Days to sell at 43 still sits above the 10 year average of 40, but still down 6 days YoY. National sales were up 3.1% year-on-year to 6,346 sales, and New Zealand, excluding Auckland, saw a rise of 7.5%, to 4,421. https://www.reinz.co.nz

I wonder which stocks would benefit from a improving property market🤫

[Shareguy]

Well ended up buying another house. A cross lease that we plan to convert to fee simple. I see opportunity. Only time will tell if I'm right.

With all the doom and gloom we have just sold after owning for 7 months. Took 6 months for the fee simple approval.

And was it worth it. Yes a very nice Xmas present with the price achieved giving us a nice 13 percent gain, plus we took a good sized parcel of land to add to our property which alone is worth $170k based on current CV land value.

A big risk but it payed off. We of course have added value to our own property with a fee simple title.

[Basil]

Congrats.  It'll be interesting how your accountant calculates the taxable gain under the bright line rules.  Is it just the net gain after all expenses including legal fees and real estate commission that's taxed or does it include the value of the extra land you took to include with your home's land ?  I would think its highly likely to be the latter, which if that's the case you'll need to get that separately valued and add that to the taxable gain, but I haven't come across this before.  Sounds like it's been a LOT of hard work as well as the considerable risk.  It must be quite a relief to get it sold.

[Shareguy]

Congrats.  It'll be interesting how your accountant calculates the taxable gain under the bright line rules.  Is it just the net gain after all expenses including legal fees and real estate commission that's taxed or does it include the value of the extra land you took to include with your home's land ?  I would think its highly likely to be the latter, which if that's the case you'll need to get that separately valued and add that to the taxable gain, but I haven't come across this before.  Sounds like it's been a LOT of hard work as well as the considerable risk.  It must be quite a relief to get it sold.

Thanks Basil,

Yes great relief to get it sold. My accountant will sort the bright line tax payment with my normal return so will find out soon enough.

[Shareguy]

Thanks Basil,

Yes great relief to get it sold. My accountant will sort the bright line tax payment with my normal return so will find out soon enough.

Accountant says no capture of added value of increased section size in bright line. It's just the net gain after all expenses.

[Shareguy]

This is going to have major consequences if it gos ahead.

https://www.nzherald.co.nz/business/companies/construction/home-owners-could-be-left-exposed-as-govt-gives-itself-an-out-on-requiring-new-build-warranties/premium/DOV6PJFOGZAXXPPQS5WZBWF3IY/