Hi. Great job. What will happen when the USD balloon blow up?
what you need to look at is average price property vs yearly average yearly wages history from this data you can see that property is in a bubble can it go up more absolutely is it a good long term investment not in my opinion is it better than cash debatable. in the past yes but in the future I'm not so convinced.
What would that do to the economy if every kiwi just go and spend that cash? it would double food prices and the price of all other things.
Good of NZ to print the money then use it to turn the economy again.
Giving every household $80k is just a waste and fuel income inequality. In the world there will be people who will use that $80k to make another $80k and many others who will just burn it up.
It takes a govt with vision and direction to put the money where it matters so that as many people as possible will have the opportunity to benefit from that printed money.
Big difference between printing money (Quantitative Easing) and borrowing.... Pretty sure you know the difference Gary, but it makes for a good catch line with emotive fishhooks.....
Gary some great advice and I watch one of YouTube videos about buying properties. You mention properties we SHOULD NOT BUY e.g near pylons, motorways, and railways but what are your thoughts on buying properties on/near busy roads?
Hey bro can i have your thoughts on this?
Im looking to buy my first home but i want to get into investment property as fast as possible. Im 24, i have 45k deposit, and im single working. Would it be better to buy an apartment at 150k and pay it completely off over the next few years then buy some apartment blocks or units or would it be better to buy a house around the 400-700k range gain equity and then look for investment properties.
Does the journalist for this article own many property’s? Unfortunately we are in a Depression not a recession I think some in media etc are trying to keep the houses from falling as they are wishful thinking. We won’t have jobs or tourism and could easily have another outbreak. Reality is house prices will slash.....plus there will be no migrants no students no body. We are a village who’s prices went ridiculously high in terms of what we can service bla bla bla. Along with this comes social stresses marriage splits, MH breakdowns and god forbid health!! Like corona......it’s not really going to be a pretty picture in my opinion. The small percentage who have no debt and cash will be able to take the opportunity and sweep it away from others. That’s the reality of it. Hyper inflation
Anyone in the Death, Divorce and Debank problems will be forced to sell at a deep discount as there are less buyers around.
Do you see house prices dropping in the next 6-12 months? By how much?
My money is on Ray dalio being right and you being wrong.
Good morning 🌞
I worry that if everybody borrows like crazy and keeps savings loose value in the bank the....feds who keep printing money will collapse some currency’s. Hyper Inflation happened in the 90s and impacted many Euro country’s.....some rich people who had a whiff prior borrowed and became rich overnight. Imagine those who have saved all their life and overnight their savings is worth one carton of milk? Hyperinflation is welcomed by big company’s as it eradicates their debt. One good side to hyper inflation I guess is that if you have a fixed loan of $700k imagine paying off your loan over night for $700 dollars. These manuveres happened in history and made some of the richest people in the world. They got a whiff borrowed heaps of money turned it to gold bla bla. I just think if we have a second wave of corona it could get to be a roll of the dice
Your a smart guy Gary Lin I think your on the right path in relation to financial... Would you agree it’s a good time to take out a small load say 80-120k?
At Alert Level 3, everyone must still work from home unless that is not possible. Workplaces can be reopened if the work cannot be done from home and the workplace can operate consistently with public health guidance. However, there cannot be contact with the public.
For example, retail needs to be by contactless purchase and delivery, including drive-through and click and collect. Retail storefronts cannot open to customers (except supermarkets, dairies and petrol stations).
For example, a café can allow phone-based ordering and payment, and then deliver the food or drinks to a customer parked in their car park in a way that avoids contact.
At Alert Level 3, everyone can travel for work within their region, or to a neighbouring region. You should only travel if it is necessary. Essential workers can travel outside of their regions, where it is necessary to do so.
Restaurants, bars and cafes can open at Alert Levels 1 and 2, subject to the public health measures required at both of those alert levels and restrictions on gatherings, for example distancing between tables.
People can move homes at Alert Level 3. This includes rental moves. They can travel between regions, including using domestic air services for the purposes of moving house. All freight can be moved around the country at Alert Level 3, and moving companies can operate as long as they do so safely.
Where possible, the physical interactions involved in house sale, purchase and settlement should be done remotely where possible at Alert Level 3. It may be possible to do a final pre-settlement inspection in person, or have a real estate agent come into the home, as long as all physical distancing and public health measures are taken.
Alert Levels 1 and 2
The physical interactions involved in house sale, purchase and settlement (e.g. open homes and inspections) are possible at Alert Levels 1 and 2, subject to any conditions at those alert levels. For example, open homes will need to comply with contact tracing and distancing requirements.
Lessons from a flash back to 2010, where I bought and sold 20 vacant sections in Lehigh Acres, Florida, as my first real estate business.
All the 1/4 acre bare land sections were bought, marketed, and sold online. See the pictures of the listing below.
This was between 2009 & 2010.
I have never set foot on US soil until 2016, and that was Las Vegas.
To this day I still have not been to Florida.
Before taking this huge step, I had prior read Rich Dad Poor Dad by Robert Kiyosaki.
I had the dream of investing in property so that I can achieve financial freedom, and to quit my dad job as a civil engineer.
Then attended a $5,000 3 day Auckland seminar on buying and selling US Tax Liens and Deeds.
It took me a few months to learn and figure out which state and town I should target.
Somehow I ended up looking at flipping land in Lehigh Acres in Lee County, Florida.
Lee County was one of the first counties in US to stage Tax Deed auctions online.
Each county auction started at 10am Florida time. That meant I had to stay up to watch the online auction starting 2am.
Some nights I had to wait until 6am until the lot I was interested bidding come up.
Then off I go get ready for work the next day.
Very little or no sleep.
Once I bought the land, I had to learn how to sell it.
I had to learn how to make my own listing online via Ebay or another real estate selling site, using HTML format (see the pictures of one of the listing).
Then where do I get the real photos of the land?
I took screen shots off Google Streetview, and Eagle Eye from Bing.
Make the buyers visualise the land they are bidding for.
Once I sold them, often only $100 to $500 USD profit per sale... I had to learn how to transfer the title, at a cheap cost.
I created my own Title Deed, get a Notary of Public to witness my signature, and post it to the local County title office to have the title transferred.
Why did I gave it up?
Three reasons: 1) it took too much time and effort, especially staying away all night for the weekly auction
2) too little profit, considering the real estate market had just went through a GFC in US. Land prices used to be 40-50k USD back in 2006, and I was buying them at $2000 USD each
3) I found a better way, I subsequently invested in 14 Auckland property between 2010 to 2016, and the rest is history. You can find my success story on NZherald
The moral of the story, if you are a business owner, or a property investor, always constantly learning, pivot, and refine and find better ways to create wealth, sooner, and easier. ... See MoreSee Less
Thanks this resolved my query in no time. I'm an essential business and some of my employees refused to show up at work due to family pressure thinking about their safety. I respect their decision.
But I don't have to pay them because I'm happy to provide then the work as per minimum agreed hours, but they don't want to work. I have told if they want to be paid without any interruption, just need to come to work and that's all. They are my good cleaning staff.
I am needing to pay extra for other cleaning companies to keep the work going, which is costing me more than double.
Am I doing it right within the legality?
It's been an incredibly busy week and working hard to help small business customers in the bank.
Life has been fantastic working from home, no traffic jam, no doing up my hair, no cutting my beard, no hair spray, and get to work from bed in less than 10min!
Work wise there has been incredible pace of changes in the lending environment, with introduction of the Business Finance Guarantee Scheme that came out on Thursday.
Unfortunately like I said previously, the government should have came out with this scheme 2 weeks ago, and it should cover ALL small businesses, not just turnover of over $250k a year.
Also pretty disappointing to hear our Reserve Bank governor Adrian Orr saying that the government cannot save all businesses... Yet Australian government has came out with a broad range of support packages for SME and employees, without business turnover limit...
Lastly sad to see big companies like Skycity and Fletcher Construction starting to cut staff and salaries, and unfortunately more will come next week I suspect....
Going forward I will focus more on the positive side, give you all more property related education, and scenarios for different types of businesses how to grow in a digital online environment! ... See MoreSee Less
• These are unprecedented times – haven’t seen anything like this in my 44 years in finance. • This is not a financial crisis. Dependency on central banks to moderate the problem can only achieve limited results o We are seeing central banks become very aggressive, taking on responsibility of stabilizing markets, doing a good job of providing liquidity - unlike 2008 which became worse and worse because of liquidity crunch • That being said, a lot of leverage in the system – personal leverage and hedge funds. We are seeing vast amounts of liquidation particularly amongst hedge funds which is causing huge stress in markets • But again, this is not a financial crisis. That’s why when fed announces ambitious programs, markets continue to slide. This is a crisis of confidence • We’re all triaging – we are doing everything we can, some measures won’t work, but overall, we will recover • We are working with the government and doing everything we can to stabilize the economy • We need to determine how much fiscal policy we need, which is ultimately a function of the curve of the disease • If it peaks in the U.S. at end of April, which many scientists suggest – we have 5-6 weeks left of this, then another 5-6 of watching infections decline. Altogether, that would suggest a 3-4-month problem • If we look to China as a barometer, they were able to mitigate the pandemic by closing down their economy quite severely, and it took them about 10 weeks to recover • Much harder to completely shut down democratic economies vs. autocracies. That’s why I’m suggesting it will take the U.S. 3-4 months stop infection rates • If this is true, how do we ensure Americans have money to live, small business can survive, etc. This is where fiscal policy comes in • Recommend to everyone who’s listening – if you agree with us that this is a 3-4-month problem, do not run away from the world of investing • If anything, with markets down 30%, credit spreads of hundreds of basis points, you can buy floating municipal bonds at 1% - we are seeing opportunities you would have dreamed about 5 weeks ago • The most important thing – take a deep breath, have a long-term perspective • Watch what China did – room to start looking at curve of infection rate, where are the opportunities to invest
• Every company is looking to ensure they have enough liquidity, and that employees are taken care of and feel comfortable. Purposeful companies know that employees come first • There are some companies that are benefiting from this calamity (Kroger’s, P&G, Amazon, Netflix, etc.). Many sectors of the economy are seeing overwhelmingly more demand, but the impact on small business is devastating • My conversations in china – factories went from closed to up to 80% production again. U.S. companies need to focus on preservation over the next 8, 12, 20-week period • Blackrock needs to make sure we’re working with our clients, protecting employees, and preparing for stability and the inevitable rebound • We’re helping many industries (insurance, pension clients) navigate uncertainty, take advantage of adding risk, big opportunities, yields + dividends that you dreamed about just weeks ago • We are seeing a huge opportunity to run into the markets – not fully today, but systematically recommending that clients take on risk
• We are focused on ensuring that our culture as robust today as it was 8 weeks ago • Today we have 8-12% of employees in offices, more employees are coming back to offices in Asia • Most important thing is that our team is connected, that they’re communicating to all of our clients • A lot of people aren’t thinking about culture during this pandemic. The difference between bad and good companies, and good and great companies is culture. It has to be virtuous and connected, especially when everyone is WFH • We are working really well at home, have great technologies in place (Aladdin system – singular technology platform) • We are overcommunicating - I just issued a video message to all employees, every day we are communicating to employees about what we’re doing, sending a daily communication about what our clients are doing, etc.
Collaboration with government:
• Entering election period in America – there is no time now for partisanship • Doing everything we can help America and Americans. Working with this administration as best we can, working with democrats in congress, working with both sides • Tying to accelerate action by government to reduce fear amongst Americans, providing support to Americans who are losing jobs, working with regulators and making sure markets stay open, fluid and functioning
Long term impacts/behavioral changes:
• One thing that’s fair to say – I don’t see how movie theaters ever come back, I think we’re going to see real pressure on commercial real estate • More and more companies finding that WFH is a functioning way of working - Especially with technologies like Aladdin, single platform, video conference, etc. • I still believe in congregation – pods of excellence are important. Still believe that water cooler talk creates the most ingenuity • We may see long term behavioral changes. More Americans may cook from home (bad for delivery services, great for grocery stores perhaps) • Need to think about these behavioral changes as investors. • No question – this is going to leave an impact on every human being, will overall create a little more fear • People will hopefully realize they need to save more money, invest long term. This could be a great outcome. A personal safety net is imperative
• Some people think globalization created the virus. In my conversation with CEOs, their attitudes have not changed • Globalization has lifted more human beings up in shorter period of time than anything we could image, this won’t change. Trend towards globalization is not going to go away • Believe there will be great opportunities to invest overseas again. America is in great position over next 10 years • This pandemic is going to force more and more businesses to think about how they can be more connected in all the societies they work in • Sustainability – with the pandemic, and oil prices + economy where they are, whole issue of sustainability has become secondary. I do believe when we’re behind this crisis, and we get back to normal, and we look at death rates and cause and effect, we will see evidence that death rates were higher in areas with more pollution. Until then, sustainability will be secondary to pandemic
Perspectives for clients’ clients:
• BlackRock has always focused on long term • We are being opportunistic and buying companies during this time • I have no idea if we’ve hit bottom yet, but I do know where valuations are over a long horizon, credit valuations over long horizon – there are good opps out there • Urge everyone, if you have long liabilities, if you don’t have leverage with your clients /own portfolio, time to start adding risk, not running away • At BlackRock globally, we have seen little in terms of redemptions. Of course they have accelerated over the last few days during panic, but the massive declines are amongst leveraged hedge funds, leveraged mortgage REITS and leveraged companies • Core investors not witnessing that much selling • Strong recommendation to all of you: if you don’t have to sell, and you feel nervous, go have lunch with your spouse • Not a time to be running away from risk over a long horizon. Markets can still fall from here. 6 weeks ago, DOW was 30% higher than now, corrections over a long run are good, wipe out leverage, reassert it, 5 years from now those are adding risk now, will feel pretty good about it. ... See MoreSee Less
Day 3 of Lockdown 1) employees are scrambling to work out the correct pay to pay their employees 2) US & Australia not in lockdown and infection numbers continue to explode. (Italy death number went up by another 969 yesterday) 3) NZ Government is bringing out the printing press of $52 billion of much needed stimulus to businesses 4) Interest only extension up to 12 months, vs mortgage deferral up to 6 months ... See MoreSee Less
Is the 52b being printed or is it a loan. if it is a loan is it denominated in nzd or usd?
Hi Gary. I appreciate your knowledge and opinion. Do you think the banks will or be forced to pass on a true mortgage holiday ie; one that doesn't see a deferred and compounding mortgage interest rate accruing greater debt in the background versus one where the period could be grace or dare i say it, a wholesale rate while New Zealand and Kiwi's in general find their feet?
In my own example as a landlord, both my tenants and i have all lost our jobs and i would like to pass a true rent holiday (live for free) or at least a heavy rent discount to allow them to get over the hump but with their payments servicing the lion share of my mortgage debt, now not having a job myself means i'm not in a position to be accomodating if the banks don't play ball. There are no doubt thousands like me in the same or a deeper position and there will be civil unrest if the banks profiteering engine is allowed to run untethered as the Covid event and fallout extends into the future and everyday people and businesses are doing it so tough through no fault of their own.
You think any of the big 4 banks in NZ will fail within the next 12 months?
I'm worried sick about my son, he's a fifo worker ,he lives in Western Australia...and they are not in Lockdown????
🤣😂🤣 The Government should have had some criteria in place to prevent people who haven't been working in NZ at all over the last year paying taxes, are not eligible for benefits. Our Government really isn't the most logical or smartest at looking into the future. Yet media and them feed us misinformation in telling us they know what they are doing changing and making new laws! NZ Government is a joke!
So some of them don't have a house in NZ anymore so when they come back where to stay ? Motorhome? HNZ houses ? Tax payers pay for them ?
Housing Minister Megan Woods said it was not giving tenants a free pass for bad behaviour.
"It is not acceptable for tenants to abuse the current situation by refusing to pay rent when they have the capacity to do so, causing significant property damage, or significant anti-social behaviour. Tenants are still fully liable for their rent payments and any damage as we ensure that landlords do not increase the burden on tenants."
If you let it crash and debt deleverage the economy will recover much stronger however the banks dont want this its bad for banks when potentially billions disappear from there books. If you try to print you way out of it you will get Japan sagflation.
.... QUARANTINE MUST FINISH ASAP ...... THIS IS ONLY SOLUTION ......
Don't be afraid. Things will be better.
Good presentation and you have made it clear it’s not all sectors, primary industries are still running and exporting, and we will bounce back but there needs to be some short term support.
To get some more revenue now all you property investors should pay capital gains tax since as a payback for mortgage stop page and bailout
Good video verlocity is a very important factor. Also not the full picture. The low dollar is great for sheep and milk. Which are some of our major exports.
Where will govt get the money from? Someone has to pay?
Don't worry about the money. Worry about the people a going to die.
Thanks Gary! Two questions: If you have money, what's the best thing to do with it, other than spend? And, when do you expect that we will start to see house prices fall?
Excellent video Gary. And so very true.
Business owners, shareholders, self employed people are eligible to get the wage subsidy
Great overview video thank you.
So true. Have to be extra careful with our money. We shud get our tax back if we need it. Govt is keeping our money.
Thanks we have a settlement due early April working through with lawyers of course the buyer is trying to put it off but we are going to go back with a video of the Chattels etc done by the agent today - it’s vacant possession so no issue on our end!
As a real estate photographer, this will effect me quite a bit. Thank goodness for government subsidies 👍
the numbers will be a lot more as she close the border too late. There are still lots of people are not qualified to do the test! Image when people are sick ask for test waited for few hours or days to get a "NO" answer!
Jacinda Ardern we all LOVE YOU long time. You are great PM. Let's make New Zealand Great Again
While some may worry that NZ banks will fall over, the reality has been that all central banks around the world are pumping extra liquidity to support the banks and the financial markets, to dampen the economic damage Covid-19 is causing.
Throughout last week, central banks lead by the Federal Reserve of US have: 1) setup foreign exchange credit lines with fellow central banks 2) putting additional liquidity into the market, ie trillions pumped into the Repo market 3) lowering reserve requirements by all banks, so that they can lend more to customers who really need a lifeline now 4) lowering interest rates 5) mortgage repayment holidays and other measures to help bank customers
More and more help from central banks and retail/commercial banks will come over the next weeks and months.
If one fails, I'm sure government and NZ Super fund will be very happy to buy it off the Aussie banks! ... See MoreSee Less
What we learnt about Prime Minister Jacinda Arden's announcement today : 1) schools NOT closed unless a puple has been infected 2) Alert Level 2, community infection growing 3) employees of businesses start working from home 4) Avoid all non-essential domestic & international travel 5) Essential services like supermarkets and pharmacies will remain open, and shelves are stocked ... See MoreSee Less
Anyone in New Zealand who works in events, entertainment, tourism and hospitality (and any other one) industry who have seen their work dry up overnight.
If you are self employed, and your future work is affected by the virus, apply now!
You are all eligible for a 12 week wage subsidy as of today. Lump payment for 12 weeks $585 per week full time $350 per week Part time. You can apply only for the next 12 weeks. They endeavour to pay within 5 days of applying.
How to protect yourself against the economic impact of Covid-19, as a property investor?
1) Have 1 years rent as revolving credit facility
2) Keep a close eye on your job status and how your employer is doing. Keep your CV up to date. If you lose or about to lose your job, apply for unemployment benefit, and look for employment immediately
3) If you are a business owner, cut down all unnecessary spending, immediately discuss plans with your employees, and apply for government help immediately.
4) negotiate terms with your tenant if your tenant lose their job, come to a win-win situation so both you and your tenant survive and get through this.
Gary Lin what do you think, your bank digging their heals?
Hmm wonder if the banks will move today. Unless they have the petrol stations syndrome, Oil price goes up instant price change upward, oil price goes down, the offical message is "oh a lot more factors to the price of petrol than just oil" prices stay the same or very lil drop.
Coronavirus is affecting more and more of the western world, and potentially on a bigger scale for New Zealand and Australia in the weeks to come.
Prime Minister Jacinder Arden has effectively closed New Zealands border effective today, by requiring international travellers to quarantine for 14 days arriving in NZ.
You and I, as business owners, or employee of a business, and/or a property investor, must adapt to survive the next few months of uncertainty and turmoil.
Kerwin Rae With everything that's happening with Coronavirus, we are entering unprecedented times that require plans for unprecedented measures. Please allow me to help you identify the 4 things that you need to do as a business owner in order to prepare and process and work through this historical event that has never been experienced before.
Please make sure to take note of each point, where you're at and what needs to be done at a goal, task and priority level to ensure you can manage the execution of each phase properly. Your business depends on this. Please make sure you watch this. Best of luck, i send you nothing but love, prosperity in this new time, in this new phase that we start to move through.
The sunset clause is meant to protect the buyers, unfortunately developers with smart lawyers have clauses that protect greedy developers.
Robyn Tamlin-Lea great to follow ! 😆
Great video, thanks Gary Lin.
Great video ! Love the simplicity and power of whiteboards.
1 question- I had a friend who just bought a new build on plans which will be ready by Dec and all he had to pay now was 10% and 90% on settlement. V likely the way market is going he will end up with equity on settlement. So what’s your thoughts on a case like that ?
What about new builds in new suburbs (Rolleston) of Christchurch?
Say on 420m2 land w house 140m2. Land cost 150k, set price $305k fin product. 8 months to build.
Our long settlement was a blessing. Paid $10k deposit to secure the land. Our land value on 1.1hec more than doubled in the two years it took for title to come through. But definitely see the other side of it.
Great info, thank u
Avalon Paton he’s great to follow also!
The current new build, especially in South Auckland are ugly and box shaped. In very short time the owners will feel the pinch.
I’ve seen developers cancel contracts on the people who had bought up front and then sell to HNZ. Bad form, but it happens.
Another thing to consider in these scenarios is shared property. If you are in a body corporate or share walls with a neighbouring townhouse etc it can be a nightmare to sort out any problems or get something fixed. In Christchurch nearly a decade after the earthquakes one apartment complex has only just managed to agree on how to spend the insurance payout so you can be tied up in something like that for a long time if something goes wrong.
Property Market Update for February 2020: 1) property market especially Auckland is red hot! 2) Coronavirus impact to the economy, possible future OCR cut, and lower interest rates ... See MoreSee Less
They can try it, but it will screw the banks. Banks can't make a good living in a negative interest rate environment.
And banks are going to need all the help they can get in the next 6-12 months, maybe longer.
Can Orr make the banks less profitable just as coronavirus is causing widespread debt defaults?
I think 3Gs more descriptive..going for broke🤣.
Going broke is easy...there are more of them than the 'Man-WB' himself.
Pretty much spot on.
It does apply to property too, just the risk is much lower, especially if the asset’s value is primarily due to the land rather than the structures.
Could apply to ladies too.
2 for sure
The title is a bit misleading. I assumed he meant leverage in property and was thinking that there is no way this could be right. However he is saying don’t borrow to buy stocks. Completely agree with that! Hence banks don’t really lend for that to most people.
Gary can you explain why you think something like this is worth as much as it is? Can’t just because it’s in Takapuna? It’s not like it’s on the beach.
Why? Is the question, what would possess anyone in their right mind to offer a 1 million, then 1.4 million @ auction. Great for the seller, but why.
Because it is becoming high rise zone..And it's been an expensive ate area for a long while buy a developer was put into liquidation and its units sold off not long ago..weird.
Reminds me of Bondi beach.
10 years from now , you would be saying damn that was cheap!
He must want to be next to a neighbour
was this the cross lease one?
Possibly 'normal' for the expensive subburbs of Melbourne and Sydney. Might put it in perspective where Auckland is heading.
This is what happens when interest rates are so low !!
That is madness!!!
That's crazy! Auckland Residential property On 🔥 🔥 🔥
This is central Takapuna. On a road that links directly to the northern express bus station, walking distance to Takapuna beach, retail, hospitality...
Good price though, great for Takapuna 2 beddys.
Everyone in auckland is crazy. Except you aye Neil Lambert
Olivia wth is going on over the shore
Guys you just don't know the area. Older property in all nearby streets is slowly replaced by anything from 6-storey apartment buildings to high rises (The Spencer on Byron)... It's like owning a shed somewhere in Auckland CBD 60-80 years ago
This is why I sold and bought up and of 2018. You could start to see that the slump wasn't there and the demand and low interest rates would keep the market pumping again.
That's $400 per room if you were flatting and the place was rented . Insane for that money . Need bunk beds in the rooms just to survive
Pump and Demand is real
That's really on 🔥🔥🔥! There is quiet a huge patch of HNZ nearby and scattered of HNZ the next street. I hope the owner won't regret after paying the big $$$
That money your better off looking Double grammar zone or near Cornwall park unit.
Not for me
Gary how much were they at the peak and what year was that?
I’m seeing some big sales in Sydney & Melbourne
Glen Kelman check this rubbish out. People are idiots.
when an asian sneeze, would everyone run away? 😛
Mate 2 bedroom unit needing a full do up in Pakuranga, pre auction offer came in at $710k, sold for $743k. Couldn’t believe it
So this is about $230-$280k TOPS in Christchurch. How on earth does it feel “good” to overpay for real estate so much? Or is living in Auckland today just a tax on stupid people ?
This is absolutely stupidity.
This is when you know the market is broken. Can't wait for regulation.
Banks have reduced the interest rates they use to test mortgage borrowers' ability to repay loans this year, but are increasingly interested in borrowers' expenses as they calculate their ability to s...
Here's another development property in Papakura my students just settled last week.
Development Numbers: $750,000 purchase price $150k building consent and resource consent $250k conversion of existing dwelling into 3+2+1 separate incomes $600k to build two 3 bedroom duplex at the front where the swimming pool is. $100k site cost and underground
End result: 5 separate legal incomes, 3 to 5 individual titles. $1500 a week of existing dwelling $1300 a week of duplex
The wording in the new contract is still open to interpretation mate. It isn’t locked down tight, yet.
Sounds fair, if your trying to sell a house, who wants to get messed around with tyre kickers.
Very hard to prove especially if the vendor is willing to finance 🙂. Many could get stuck.
I was in a situation being the vendor, that the purchaser pulled out of the deal cos he changed his mind but he used the finance condition which is not true cos I knew he had the finance sorted. I consulted my lawyer who advised me not to take legal action cos the onus of proof is on the vendor.
Yeah, I got 3.39 for 18 months locked in with ANZ 2 weeks ago
Refixed one today at 3.39% with Bnz for 1 year ! Super happy
Anz are doing it for 18months and 3.44 for 2 years.
They lowest it could ever reach in NZ would be 2.5 but that will mean an economic crisis.
For loans less than 1M it makes no significant difference signing up now or taking the risk for it to drop alittle further.
Remember within 10 years we will dream of these numbers, they will go above 8%.
Banks will have to flip the coin.
Here's a great video few years ago by my idol Robert Kiyosaki.
Roberts message remain just as relevant today as it was back in 2009.
youtu.be/MIhK6ky9vOQWhy The Rich Are Waiting for the Next Crash Hint: It’s actually the best time to buy real estate Have you ever noticed how people are constantly worried abou... ... See MoreSee Less