Glorious 2 bed home...

[lord_jagganath 421]

If you haters had bought in AK at the start of this thread, you could have sold now and paid cash for your rural shed.

there's a slight problem with that with being the barriers to entry being so goddamn high, in the beginning.

[gjm 3258]

there's a slight problem with that with being the barriers to entry being so goddamn high, in the beginning.

There's a house I pass on my way to drop Miss M at school - sold about two years ago for $2.2m. On the market again now, for $4.2m. Fantastic profit... If you had $2.2m to start with.

(Land value increased in the last valuation from $1.475m to $3.575m. )

[m325i 709]

If you could be lent $2.2m to start with.

FTFY

[gjm 3258]

If you could be lent $2.2m to start with.

FTFY

Ta.

[coop 261]

there's a slight problem with that with been the barriers to entry being so goddamn high, in the beginning.

I could see no such problem when houses were affordable five years ago.

First home buyers wanted the new VW Golf, Hyundai shitbox SUV, latest iPhone/pad/mac with their first home in Parnell Ponsonby, Howick, Takapuna, Devonport etc. They wanted what they moved out of (their parents home) as a result of 30 years of working, saving and climbing up the property ladder. So of course their ideal first house, and everything that comes with it, was out of reach. Prioritising, a foreign concept.

Most average suburbs were attainable a few years ago to the normal Kiwi or first home buyer. I suppose an average house in a not so desirable area (most of West, Glenfield, Pakuranga etc (imo)) is still possible on two average incomes but most of that joint income will be servicing the mortgage, that is if they can save enough for the deposit in the first place.

I am over reading and hearing about this housing/pricing crisis in Auckland, and how hard it is to 'live' in NZ, most rabid hysterical leftists having a stab at the govt. or anyone with wealth/assets behind them at any opportunity they get. Pack ya sh*t and f. off to another country and see how green the grass is.

FFS if ya can't afford a $600k dump on a small section in Auckland look elsewhere. BOP, Waikato, Malborough Canterbury etc.

Hamilton and Tauranga, and close surrounds, will benefit greatly from this drama going on in Auckland over the next 5 or so years. A lot of Aucklanders priced out of the market, or cashing in, are already moving south. I suppose when the rest of them see what a higher quality of life, and better value for money is on offer then the domino effect will really start.

[E30 325i Rag-Top 2956]

Exactly, it's all about choices and priorities.

You don't HAVE to live in AKL, you don't HAVE to have four beds, an en-suite, double garage, garden, in a nice area.

But due to those wonderful rules of supply v demand in a free market if those are the things you choose to have, then be prepared to pay the price for them.

If the population forecasts are correct, then things aren't going to change any time soon with more people moving into AKL..

[richard 384]

sorry Ron but I'm going to take you up on this!!

Developers take as much if not more of the risk as anyone else in the building trade.

1]from start to finish may take 4 years.

There are lots of good developers out there.

Lots of bad builders too.

when you have cost over runs because you facted in price x, 2 years down the track prices have risen 25%[ manly labour costs] and your've sold 90% of the units, your screwed.

The building costs that you speak of, well they the building company priced it, if they set their margins to low, who's faults that. Bad QS'ing I say.

The guys you have listed below got court out in the leaky building scenario, not their fault.

You got this part right.poor materials.

The majority of developers don't build anything, they run a PONZI scheme where the bank, the builder and the purchaser takes all the risk.

Finance rates are irrelevant to them because they are only exposed for a few months during build and just factor the finance costs into the selling price,

Building costs and risk sit with the builder - If the developer goes bust then the contractors loose their shirts, houses etc. because they have to pay for the materials and pay their workers.

If the house is sh*t he blames the builder / council / materials/ the government and it's your problem

Mean-while the developer swans off overseas on a holiday on tax free gains

Evidence -

Contractors out of pocket on numerous developments e.g. orewa one by Patrick Fontein of the property council (aka developers lobby group)

Various developers named Henderson either convicted of snorting coke or tax evasion same for the McKenna guy

Your rates / ground lease prices / market price - that guy McKenna again 400% increase in land rent in the Beaumont quarter

Dodgy Developers who cant' get bank finance currently are paying up to 22% because they can cover it with the price escalation over a 9 month build time

[richard 384]

Rich, you need to do your homework.

I speak from experience Ron. I am currently working 2 projects both from said developers.

Hendersons got done for tax evasion - nothing to do with leaky buildings

This was the ezy way out.

Fontein got liquidated because he was 9 months behind and only part paying legitimate subcontractors bills because he was using the progress payments he was claiming from the financiers etc to pay for his lifestyle and privates schools for his kids.

When subies have invoices/bill for unauthorized remedial work because someone f**ked up why should he pay.

This usally happens because of cheap labour, and skilled people have moved on.

McKenna went down because he couldn't keep the wheels spinning on his PONZI scheme he was MILLIONS" out and defaulted on loans.

Ill give you this one.

Edited May 20, 2015 by rich

[jeffbebe 1559]

We're selling our house in Ponsonby. Its RV is $1.3M more than we bought the house for 23 years ago. Yes, we're very fortunate (and work hard and planned ahead) but we're still sh-tting ourselves because a house with a bit more space locally will need the biggest loan we've ever had despite being all but mortgage-free right now. And, after nearly 25 years in Ponsonby, we don't want to move to f---ing Hamilton to live in our dream home!

[E30 325i Rag-Top 2956]

It's the bloody Real Estate Agents I can't stand, what a waste of time they are. Couldn't put a price on our house, "what's the RV?" was the question they asked when I wanted them to tell me what they would sell it for... Pathetic excuse for marketing and advertising (all at our cost..) and a couple of Open Homes. For which they wanted to be paid between $18k - $22k (based off the RV as a selling price).

And I thought Estate Agents in the UK were supposed to be crap, they certainly do a lot more for much lower fees, and do more of the actual transaction as well rather than just pocketing the cash and palming you off to a Solicitor to pay more fees.

So I thought "f$%k that for a game of soldiers" and got some quality photos taken, put the house on TradeMe did a couple of Open Homes with the wife and sold it three weeks later for $20k more than the highest valuation from any of the Real Estate agents, total cost to me of less than $2k. Net gain in my wallet circa $38k for about eight hours work.

And as for the Agents in Auckland when looking to buy.. HA!

[Nobimmer 694]

This guy doesn't like real estate Asians either

[lord_jagganath 421]

would building more homes help? any good builders out the Waitakere area? I am eyeing this plot of land...

[gjm 3258]

It's the bloody Real Estate Agents I can't stand, what a waste of time they are. Couldn't put a price on our house, "what's the RV?" was the question they asked when I wanted them to tell me what they would sell it for... Pathetic excuse for marketing and advertising (all at our cost..) and a couple of Open Homes. For which they wanted to be paid between $18k - $22k (based off the RV as a selling price).

And I thought Estate Agents in the UK were supposed to be crap, they certainly do a lot more for much lower fees, and do more of the actual transaction as well rather than just pocketing the cash and palming you off to a Solicitor to pay more fees.

So I thought "f$%k that for a game of soldiers" and got some quality photos taken, put the house on TradeMe did a couple of Open Homes with the wife and sold it three weeks later for $20k more than the highest valuation from any of the Real Estate agents, total cost to me of less than $2k. Net gain in my wallet circa $38k for about eight hours work.

And as for the Agents in Auckland when looking to buy.. HA!

Real estate agents have become much worse recently. PBN, Tender, Auction are now the preferred method of pricing, with the motto 'let the market decide' being trotted out every time anyone asks why. The truth is, they either don't know, or can't be bothered. A less professional group of people I have rarely met - well-presented, but often incapable. The money they can make is quite frightening too.

[HSB 282]

Real estate agents have become much worse recently. PBN, Tender, Auction are now the preferred method of pricing, with the motto 'let the market decide' being trotted out every time anyone asks why. The truth is, they either don't know, or can't be bothered. A less professional group of people I have rarely met - well-presented, but often incapable. The money they can make is quite frightening too.

false.

find the few in the area you want to purchase that have sold over $50 - $70 million dollars of property. that is the person that fits into category c) knows, and can be bothered

[m325i 709]

Real estate agents have become much worse recently. PBN, Tender, Auction are now the preferred method of pricing, with the motto 'let the market decide' being trotted out every time anyone asks why. The truth is, they either don't know, or can't be bothered. A less professional group of people I have rarely met - well-presented, but often incapable. The money they can make is quite frightening too.

So do tell, how do you think they should price your property?

[Apex 693]

I have had a decent run with agents. If you are in South Auckland I can recommend Dylan Turner and his team.

Will be listing my place soon. Perfect for the car guys, can fit six cars in my main garage, then another six or so in my high stud workshop... comes with a brick and tile 1950's house so you will have sometime to crash.. if you don't fall asleep in the man cave situated next to the workshop.

[gjm 3258]

I would like agents, being paid to sell a property, to put a price on it. As a potential buyer it is enormously frustrating but I can see some reason behind it... They want to achieve the best sale price possible and in a volatile (although upwards moving) market that could be difficult to quantify. (There is self-interest on the part of the agent here too as they'll make more commission from a higher sale price.)

But to be unable to offer a seller (see Jon's post above) a valuation... Staggering. Curious that they would ask for the RV as we've so often been told the council valuations have no bearing on the market value of a property. We were told this before the revaluations ("new council values will be much higher and we're marketing the property accordingly") and since revaluation, that's been maintained ("the property was undervalued by the council"). When a value has been indicated at all, of course.

Not all agents make a lot of money. And not all agents are as bad as perhaps I painted them earlier: we have met some good ones, including a few who have refused to represent a sale as the owner was unrealistic.

My frustrations at property prices and selling/buying are my (our) own, and based on our circumstances. Sometimes I let those issues get to me: in particular, having owned a house for 20 years, being told I now need to buy a 'nice little starter home' doesn't sit well.

In other bad news for buyers, Auckland average asking price rose to a new high of $789,581 in April. The wider New Zealand property market saw average prices rise to $521,729, an increase of 1.4% on the previous month and just over 9x the average NZ wage. (I suspect NZ-wide prices are slewed by prices and increases in Auckland.)

[m325i 709]

You must have come across a real dud mate.

They required to give you a written appraisal price. All they can go off is previous sales evidence. Anything else is a prediction/guessing which is irresponsible. Therefore in most cases in this market an auction is the best/only way to achieve the current market value.

Rateable Valuations are mass appraisals. There is no inspection of the property, and they use a range to methods to index what the new one will be. It isn't the current market value. That being said, people do look at it as a guide and to provide some relativity. If your rateable value is $100k less than a similar property next door that recently sold, people will wonder why. That doesn't mean yours will sell for less, but it's not 'good'.

The rateble value is public info, any decent agent would have looked that up prior to meeting you.

Private sellers often kid them selves they did well saving the commission. Pretty common for traders to target private sales for cheap deals.

[westy 614]

I have had a decent run with agents. If you are in South Auckland I can recommend Dylan Turner and his team.

Will be listing my place soon. Perfect for the car guys, can fit six cars in my main garage, then another six or so in my high stud workshop... comes with a brick and tile 1950's house so you will have sometime to crash.. if you don't fall asleep in the man cave situated next to the workshop.

Ol' one-eye Dylan?

[E30 325i Rag-Top 2956]

Private sellers often kid them selves they did well saving the commission. Pretty common for traders to target private sales for cheap deals.

If they fail to realise the real value of their property, maybe. But only then if that difference is more than the commission.

If the agents are telling you they would market at $xx that is the MOST you can expect to get. Selling privately got me much more than the highest agents selling point, plus the saved commission. Granted this was in a cooler market than Auckland currently.

Auctions are heavily weighted in favour of the seller, and are pushed by the Agents as it is a guaranteed quick turn around for them. This does put off many sellers, and as such can limit your selling price.

Personally I bought my first house to make money on it, and since then have bought houses that I WANT to live in.