Residential - Boom or Bust

[BlackPeter]

The rental market in Auckland is the hardest I have seen it in 20 odd years.

https://www.interest.co.nz/property/131338/trade-me-property-says-residential-landlords-may-need-reduce-their-asking-rents-due

Good - real estate (no matter whether you buy or rent) is still ways too expensive based on a market producing upmarket housing and ignoring that way the bulk of the market which needs housing but can't afford to pay upmarket housing.

Looks like we haven't learned a lot since the French revolution with the famous "Why don't they eat cake" citation of the last French Queen. We produce too much cake (upmarket housing) many can't afford and neglect to produce as well bread (affordable housing) people could afford to buy.

We live in an area with generally high quality (and high price) housing. Not a typical rent out area, but too many of the houses unoccupied and for sale - at prices unaffordable to most people. Owners prefer to leave them unoccupied for months (and some for years) rather than dropping the sales price.

On the other hand - number of rent-out caravans increasing. This situation is neither good for the people who have to live there on a permanent basis, nor for the community as a whole.
 
Will be interesting whether our politicians have the brains to resolve this issue ... if not - the French people found during the revolution an alternative use for them ...

[Mr Cashflow]

Now some analysts say housing market recovery cannot expect until 2026. Rental market is also not going to recover anytime soon.

https://www.oneroof.co.nz/news/tony-alexander-rental-markets-dramatic-turn-why-landlords-are-worried-47246

[Shareguy]

Now some analysts say housing market recovery cannot expect until 2026. Rental market is also not going to recover anytime soon.

https://www.oneroof.co.nz/news/tony-alexander-rental-markets-dramatic-turn-why-landlords-are-worried-47246

I agree. The rental market in Auckland is terrible. Just dropped rent by $50 PW on empty property. There is so much supply and not enough renters.  One property manager I spoke to said he is getting two rental homes a week giving notice that are going to Australia.

It's going to be interesting on what's happens with house prices. The experts are saying up this year.....I'm not so sure.

[Basil]

Boom or bust? sideways is how I see it, maybe keeping up with inflation currently running at 2.5%, (flat in real terms) maybe not, (slowly declining in real terms).  Interesting what you say about the rental market Shareguy.  Sounds grim.  I guess a lot less new immigrants coming here.  Situation unlikely to change anytime soon I reckon.

We're in no hurry to buy a holiday home in Northland....been looking online for a while and happy to keep our powder dry until something comes up that my wife and I agree on and it's at the right price.  We're not seeing any positive price momentum up north in the area's we're looking at.

 

[Shareguy]

Yes given the high levels of uncertainty I can't see house prices increasing by over 6 percent which is the average of the banks predictions.

However there are some good buys to be had with some forced sellers. We are starting to look after staying out for the last 10 years. Finance approved just in case.

[Basil]

Sobering stuff.  https://www.interest.co.nz/property/132891/housing-market-not-its-usual-self-it-prepares-onset-winter  I'm putting that fancy Northland holiday home on the backburner as I'm almost certain it'll be cheaper next year.

[FatTed]

Sobering stuff.  https://www.interest.co.nz/property/132891/housing-market-not-its-usual-self-it-prepares-onset-winter  I'm putting that fancy Northland holiday home on the backburner as I'm almost certain it'll be cheaper next year.

One less year to enjoy your holiday home.....

[Basil]

One less year to enjoy your holiday home.....

Swings and roundabouts though.  Pull say $1.2m out of the market to fund the holiday home and that means there's a lot less disposable income to splurge on life's other luxuries.

[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.

[Red Baron]

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.

You can't, unless ze other cross lease holders on ze land agree (?)

RB

[Shareguy]

You can't, unless ze other cross lease holders on ze land agree (?)

RB

Yes you're right but we already own that one as well.