REINZ figures show 29.8% house price inflation in year to end of May; RBNZ fought to use 'sustainable' rather than 'affordable' in housing mandate, which Treasury said wouldn't work
Interesting times indeed! Our experience and observation with trying to get a section in Wellington has been met with 'cartel' arrangement between the greenfield land owners, developers/builders and real estate agents that will only drip feed the market on their terms so anecdotal speaking the 'cartel' operation is price fixing ... how or if it can any Govt get around the purgatory hold I wonder? However if you are able and prepared to pay for a 'good' section you can workout what a build will be with established companies i.e. Latitude, Abode homes or even the more upmarket Landmark what the budgets/quality that are or not been spent on differ areas when at the moment it is controlled by the 'developers mystique'.
At the moment one has to be very mindful as I see at the moment a few second level entry homes on the market that are going for a high price but could have future 'issues' or insurance cost due to location by coast, terrain or earthquake ... thus 'traps' that will could end up as structural money pits or harder to sell further down the track.
Today many new houses appear to be built with James Hardie fibrous cement board after speaking to one developer that they mainly imported from Aussie so they don't use pine, so how this will play out with supply issues and impeding import cost rise catch up due to Covid while our own trees are exported hmm ... who actually owns the trees we grow?
Oh of course no Govt and certainly not the present Labour Govt would want to be tagged directly for dropping housing prices now the damage has been done and only God knows where we will find ourselves in a year or two away.
In my experience, dealing with high-net-worth clients, I found as their wealth increases abnormally beyond what would be considered normal by the average man-person-in-the street, becomes meaningless. The 11th million has far less meaning than your 1st million. That is so even if you worked your fingers to the bone in a business or multiple high-paying jobs. We now have a situation where there are too many property millionaires who have the capacity to play property-monopoly. Contemplating buying a $3 million dollar property it means nothing to pay $3.5 million. Cost becomes no object. Property investors with $10 million portfolios will simply plonk down another $million if necessary. No trouble. Such people with 2 or 3 young children won't hesitate to buy $1 million properties for their children
If the government thinks their actions to date are going to stifle prices I will be surprised
Interesting times indeed! Our experience and observation with trying to get a section in Wellington has been met with 'cartel' arrangement between the greenfield land owners, developers/builders and real estate agents that will only drip feed the market on their terms so anecdotal speaking the 'cartel' operation is price fixing ... how or if it can any Govt get around the purgatory hold I wonder? However if you are able and prepared to pay for a 'good' section you can workout what a build will be with established companies i.e. Latitude, Abode homes or even the more upmarket Landmark what the budgets/quality that are or not been spent on differ areas when at the moment it is controlled by the 'developers mystique'.
At the moment one has to be very mindful as I see at the moment a few second level entry homes on the market that are going for a high price but could have future 'issues' or insurance cost due to location by coast, terrain or earthquake ... thus 'traps' that will could end up as structural money pits or harder to sell further down the track.
Today many new houses appear to be built with James Hardie fibrous cement board after speaking to one developer that they mainly imported from Aussie so they don't use pine, so how this will play out with supply issues and impeding import cost rise catch up due to Covid while our own trees are exported hmm ... who actually owns the trees we grow?
Oh of course no Govt and certainly not the present Labour Govt would want to be tagged directly for dropping housing prices now the damage has been done and only God knows where we will find ourselves in a year or two away.
In my experience, dealing with high-net-worth clients, I found as their wealth increases abnormally beyond what would be considered normal by the average man-person-in-the street, becomes meaningless. The 11th million has far less meaning than your 1st million. That is so even if you worked your fingers to the bone in a business or multiple high-paying jobs. We now have a situation where there are too many property millionaires who have the capacity to play property-monopoly. Contemplating buying a $3 million dollar property it means nothing to pay $3.5 million. Cost becomes no object. Property investors with $10 million portfolios will simply plonk down another $million if necessary. No trouble. Such people with 2 or 3 young children won't hesitate to buy $1 million properties for their children
If the government thinks their actions to date are going to stifle prices I will be surprised