Can you afford a home in NZ?

[duddley]

Its all West Auckland

[Looonie]

Agreed, PBN's annoy the $&#$% out of me. The situation might have changed since we bought (settled start of June), but we started hunting beginning of March as we knew it was going to get worse, so made a commitment to get into something asap. Went through a few offers, negotiations and backed off as we thought they wanted too much, even ended up in a multi-offer bollocks on a proper that was defective title (which later went under auction at more than we were happy to pay, and well over CV... buyer beware...).

Saw plenty we liked, lots that had already gone by the time we had a chance to go see, in the end it became a situation of me checking 3-4 times every day (thankfully had plenty of time on my hands back then) and either driving by them same day, or going to see them that night when partner was off work.

My pet peeves with the process were agents not listing the address, so you had to waste your time calling them to find out where it was, only to find out it was a crap area, and the PBN/auction stuff... PBN/Auction properties are more often than not, listed in search results at a price bracket FAR lower than they are worth/will go for, just to generate interest. I did my own research using the Auckland Council GIS viewer to establish CV on a property, fee simple/cross lease etc and give me an idea of what it could/should go for. Most were valued around 15-20k over CV (at least where we were looking), ironically enough we bought our house AT CV...

Best of luck with it mate, feel free to PM me if you want to know anything or I can help at all.

Back to the OP, I believe buying a house in Auckland is affordable to a couple (or friends) on reasonable income, who have been able to show the forethought and sacrifice to give up some things and save a deposit (we gave up our cars to do it), so long as they are realistic about what you will end up with as a first home. First home does not equal dream home, but different people have different strategies and plans, some want to buy and renovate then upgrade, some want to buy and wait for capital gain to upgrade, some want to buy, renovate and stay forever... Just bear in mind, while the mortgage term may be 25-30 years, your ownership and possession of the house doesn't have to be anywhere near that.

[GTsedan]

And it is somehow a 'buyers market'

We decided in march we wanted something, spent the next couple of months doing the open home thing. Was pretty casual about it initally, used that time to find out what we expect we could afford. Some weekends we couldnt be bothered and after being screwed around by the first bank we were pretty disheartened. Went to a proper bank, got pre-approvied and went out looking again. Found there was this one place that we really liked and kept on going back for several looks.

The house was bought privately and we wanted an extended settlement so we didnt have to worry about breaking our tennacy. It was on the market for ages and we were the first people to offer money and it was all done over the coffee (think people down here are still a bit gun shy to private sales). Place is perfect to us (big section/garage, lots of trees) and we havent really compromised on anything we wanted, i spose its in a 'working class' suburb but neither of us wanted to live in the poncy suburbs.

[mr_monkey]

who have been able to show the forethought and sacrifice to give up some things and save a deposit (we gave up our cars to do it), so long as they are realistic about what you will end up with as a first home. First home does not equal dream home

Agree 100% with this statement. well said.

[BZG Wagon]

BZG have you tried looking in Henderson/ western heights. You can get a pretty nice mondern place out here within your budget.

I work in downtown auckland & I'm strongly adverse to spending more then 40minutes in traffic (I spend enough time at work & in traffic as it is). I use to live in Massey (where we'd get a lot for our money) but it took 1hr 20mins to get to work each day. Leave in the dark, arrive home in the dark.

Where abouts in Auckland is that? Might shed some light on the situation, if its 'Auckland City' then I understand your plight...

Te Atatu Peninsula (where we have been renting for 4 years), Te Atatu South (close to the motorway) and Marina View area (close to ferry).
We tossed up Titirangi, but it just feels too far from everything. Maybe in a few years when we have kids. Anything close to the city is too expensive for us – my partner is taking a year off to study next year (Primary School Teaching) and I earn too much for her to qualify for a student allowance. Single income family... yay.

Best of luck with it mate, feel free to PM me if you want to know anything or I can help at all.

Back to the OP, I believe buying a house in Auckland is affordable to a couple (or friends) on reasonable income, who have been able to show the forethought and sacrifice to give up some things and save a deposit (we gave up our cars to do it), so long as they are realistic about what you will end up with as a first home. First home does not equal dream home

Thanks dude - appreciate it. I think I needed to vent more then anything.

I'll admit I find it frustrating that $500k will only get me a 'do-up', but I see the challenge and fun in it so long as reno’s aren’t too major.

I am getting tempted to sell my GTT (owned it for 4 and a bit years) and get a nice, new car - simply because all I seem to be doing is working and saving, and I'm not 'enjoying the fruits of my labour' so to speak (with a house or otherwise). My trip to America is the only big spluge I've had since I bought my car.

[kiwi4agze]

I live in Kumeu and get to ponsonby in 20 minutes most days..... if you want a house buy the worst house on the best street you can afford.

My wife's a real estate agent...
Look at: http://www.trademe.co.nz/property/resid ... 336781.htm

she said a high 3 offer would get it... its a decent place.

[GTsedan]

^ Thats the worse house is in the street? Jeepers,

Ol google maps showed me where that is, not far out at all, says its only 13 mins into town

Nothing wrong with do ups, good excuse to make it all your own. Trust me its surprising the difference a lil bit of paint and new curtains/fittings do to a room.

[BZG Wagon]

Grrr... yet another place lost. Fairly annoyed at the agent (not one we've dealt with before).

Looked at it on Sunday. Asked for a copy of the LIM that afternoon and said we wanted a second viewing, with the likelihood of putting in an offer.
The agent said she couldn't get us through until today, and we just found out when we arrived at the house she presented a conditional offer last Sunday night which was accepted, and likely to go unconditional today.

She didn't tell us there was another offer was on the house when I spoke to her Sunday night or Monday and she didn't recommend the vendors go into a multi-offer situation (because it would have been unfair to the person who put in the first offer). If we had known I would have happly put in a contract.

Our offer would have been $15k higher then what it sold for. Clearly not acting in the interets of the vendor, and we also lose out.

So over this shit.

[Bling]

You can probably report that agent for that sort of thing. I'm sure the owner would be interested to know they could have got more

[solitaire]

Hell yes, thats completely dodgey, report that shit.

[Al]

Sounds like the REA actually knew the person with the first offer.

[BZG Wagon]

Yeah, that's what we're wondering.

But if we report the agent then there's one less working for / with us, and it's not going to change our situation in any way shape or form. Plus someone would have to contact the vendor, etc, etc it hardly seems worth the hassle.

Just so frustrating - the first house we've really, really liked and prepared to go all out for in months.

[solitaire]

Pop round to the house and tell the vendor what happened, then goto target

[Bling]

Yeah, that's what we're wondering.

But if we report the agent then there's one less working for / with us

They are already working against you, so nothing to lose. If it was me, i'd certainly consider just popping past and letting the vendor know. Who knows, they may kick up a stink and it could work in your favour. I don't really see any downsides to telling them your side of the story though. Worst they will say is "Meh who cares".

[GTsedan]

You are entirely within your rights to report that to the REA (Real Estate Association).

Its a pity that it's an occupation (real estate agents and property managers) which seems to attract utter muppets. Makes it all that much harder for the good ones in the industry (yea there are one or two).

Keep at it

[Looonie]

Pop round to the house and tell the vendor what happened, then goto target

My vote for this, just go around and knock on the door and tell the owner that you were prepared to put in a contract for $xx if the estate agent had actually advised you it was going to be under offer, but as you had not been told there was any other interest you were merely waiting for a second viewing and LIM report.

They may choose to sell it to you privately and pocket the coin themselves... then use the profits to fight legal battle with the estate agent

[Bling]

They can't sell it to them outside of the agent now due to the buyer being introduced by the agent. Burn them at the stake! I guess that's why you mention the legal battle though haha.

[BZG Wagon]

They can't choose to sell it to me anymore; they've accepted another contact on the property.

All they could potentially do is try to get the difference in offers from the agent.

Oh well - looking at more houses again today.

[Cruiser]

I came across a Facebook page about this recently...

http://www.facebook.com/Houses.Too.Expensive.In.NZ?ref=hl

It's getting out of control, i read recently that in as soon as the next three years the average house price in Auckland will likely be $1,000,000.

How many first time buyers can afford that?

[Stott69]

Who would want to live in auckland tho?