New Zealand - The Good, The Bad and The Ugly.

[patches]

This is what about $500k will get one in Auckland CBD when buying leasehold.

 

 

https://www.realestate.co.nz/3570138

 

or

 

 

https://www.realestate.co.nz/3644965

 

Almost tempting, but the idea of paying huge land rental fees (maybe not immediately, but in the next year or 2) is super scary!

[Wayne Potgieter]

I have been looking at properties in CHC.

 

I spend a lot of time there for work and can probably work there and retain my auckland salary.

 

Being in IT, I can work from home and the cost of living in CHC seems remarkably less.

 

Our budget of $950K for a house buys us bugger all in Auckland, but it buys us a 5 bedroom masterpiece in the Port Hills in CHC.

 

Going to go on a real estate hunt in December and take a good look.

 

If I make the move, It will probably only be towards the end of next year to coincide with my eldest moving into intermediate.

[patches]

I have been looking at properties in CHC.

 

I spend a lot of time there for work and can probably work there and retain my auckland salary.

 

Being in IT, I can work from home and the cost of living in CHC seems remarkably less.

 

Our budget of $950K for a house buys us bugger all in Auckland, but it buys us a 5 bedroom masterpiece in the Port Hills in CHC.

 

Going to go on a real estate hunt in December and take a good look.

 

If I make the move, It will probably only be towards the end of next year to coincide with my eldest moving into intermediate.

 

The Hub doesn't allow me to double-like posts, haha!

 

But yeah, some REALLY nice areas on the Port Hills. Huntsbury and Cashmere are awesome suburbs. Furthermore it's only 6km or so to the CBD from there, and even less to the bike park.

 

The fact that you get to keep an Auckland Salary is a bonus! 

 

Man, I'm envious!

 

Maybe I should start looking into jobs at the Canterbury Health Board, haha 

[patches]

The bad...

 

Metservice's predictions on Auckland weather.

 

I got absolutely soaked on the bike thanks to a VERY inaccurate prediction which I triple checked over the space of 2hrs. 15min after my last check... buckets of rain descended upon me.

[intern]

The bad...

 

Metservice's predictions on Auckland weather.

 

I got absolutely soaked on the bike thanks to a VERY inaccurate prediction which I triple checked over the space of 2hrs. 15min after my last check... buckets of rain descended upon me.

 

Haha if you don't like Auckland weather, just wait 15 minutes!

[patham]

The bad...

 

Metservice's predictions on Auckland weather.

 

I got absolutely soaked on the bike thanks to a VERY inaccurate prediction which I triple checked over the space of 2hrs. 15min after my last check... buckets of rain descended upon me.

 

To be fair, inaccuracies in weather prediction are pretty global. I planned my Saturday morning ride around a temperature profile that was meant to peak at 28 degrees max. It did not cool down much over the previous night, and so the temperature at the carefully planned start time was about 4 degrees higher than it should have been at about 25, then climbing into the thirties. Add all the smoke and haze in the air from the regional bushfires,  it was not so pleasant: so the youngster and I took it easy and called a short one.

[intern]

To be fair, inaccuracies in weather prediction are pretty global. I planned my Saturday morning ride around a temperature profile that was meant to peak at 28 degrees max. It did not cool down much over the previous night, and so the temperature at the carefully planned start time was about 4 degrees higher than it should have been at about 25, then climbing into the thirties. Add all the smoke and haze in the air from the regional bushfires,  it was not so pleasant: so the youngster and I took it easy and called a short one.

And yet we are assured that the climate is going to kill us all in 4000 days' time. According to Al Gore, we should already be underwater   !

 

Cool story on that front:

https://cei.org/blog/wrong-again-50-years-failed-eco-pocalyptic-predictions

[Imploder]

And yet we are assured that the climate is going to kill us all in 4000 days' time. According to Al Gore, we should already be underwater   !

 

Cool story on that front:

https://cei.org/blog/wrong-again-50-years-failed-eco-pocalyptic-predictions

 

Yeah, instead of looking at sensationalist headlines lets rather focus on what the science is telling us. 

https://www.theguardian.com/environment/2019/nov/05/climate-crisis-11000-scientists-warn-of-untold-suffering

[Imploder]

Any hubbers in OZ, able to tell us what's going on over there?

Looks like Armageddon or something:

 

https://www.theguardian.com/australia-news/2019/nov/11/australia-fires-nation-braces-for-most-dangerous-bushfire-week-ever-seen

[intern]

Think back to the dinosaur days of grainy black and white newspaper photographs being your primary visual knowledge of politicians (and maybe the 15 minutes of news on TV). That was probably a big leveller in the looks vs abilities rankings of politicians.

 

Slightly related topic - I agree with Scott Adams (Dilbert creator) theory that people are born to the role of CEO, needing to be tall, big build and bald with a personality disorder.

 

No wonder I'm a nobody, all I got was the personality disorder.

[intern]

Yeah, instead of looking at sensationalist headlines lets rather focus on what the science is telling us. 

https://www.theguardian.com/environment/2019/nov/05/climate-crisis-11000-scientists-warn-of-untold-suffering

gee, untold suffering! Please tell me more children aren't going to have their childhoods stolen from them....  .

These oiks clearly don't have a clue about history. You want untold suffering, try living in the middle ages...people really knew how to suffer back then. Right now, we live longer, more prosperous lives than at any time in history. But THIS time, THIS time, the sky is going to fall on us for real!

The Guardian. Pah.   

[hayleyearth]

Leasehold or Cross-Lease? (there's a HUGE difference)

 

 

 

Leasehold. I know the difference, been looking around for a while. Wont live in a flat/ apartment, so generally won't fall in the cross-lease section. Find houses around are more in the other two areas.

 

 

 

 

I know I have said it before, but damn child care is so so expensive!! $300/week, and we are already over our holiday allowance (3 weeks you can take the paying only 50% while child not at school), so we will basically be throwing money in the water over Dec holiday! (Enough money to cover international flights    )

[Wayne Potgieter]

Leasehold. I know the difference, been looking around for a while. Wont live in a flat/ apartment, so generally won't fall in the cross-lease section. Find houses around are more in the other two areas.

 

 

 

 

I know I have said it before, but damn child care is so so expensive!! $300/week, and we are already over our holiday allowance (3 weeks you can take the paying only 50% while child not at school), so we will basically be throwing money in the water over Dec holiday! (Enough money to cover international flights    )

Yep.

 

Wait till she is in school. Then the before/after school bills start.

 

For my 2 kids to attend 30 minutes of before school care, and 1 hour of after school care is $78 a day!

[patches]

Leasehold. I know the difference, been looking around for a while. Wont live in a flat/ apartment, so generally won't fall in the cross-lease section. Find houses around are more in the other two areas.

 

 

 

 

I know I have said it before, but damn child care is so so expensive!! $300/week, and we are already over our holiday allowance (3 weeks you can take the paying only 50% while child not at school), so we will basically be throwing money in the water over Dec holiday! (Enough money to cover international flights    )

 

Leasehold is the one for flats/apartments built on Iwi land. Freestanding houses on Leashold land are extremely rare (if they even exist at all).

 

The leasehold concept is pretty smart of the Iwi in fact. In stead of selling their land outright and getting tuppence on its future value, they decided that they retain ownership and rent the land out to those that want to develop/use it. It also helps that much of the prime land (parts of Wynyard Quarter, the Viaduct, and Parnell fall into this category).

 

Cross-lease is pretty common for freestanding houses in NZ (especially Auckland, approx 100,000 of them). It's where freehold land has been "sub-divided" the easy/cheap/lazy way.

 

ie. The house I currently share was originally built in 1952. In 1972 my neighbor purchased it on its 827m2 block of freehold land. Sometime in the 90's the he decided to build himself a new house on the back of the property and sell the original front house. To avoid all the council red tape etc he went the cross lease route, meaning that he was selling off a half share of the land, as well as the dwelling on that share (flat plan). Someone bought this in 1995 and since then the property has comprised of a half share of the total land package etc. Both properties have their own driveways, and I believe they can be converted into freehold for a fee and some council sign off.

 

 

FSIM = Fee Simple

Flat 1 = Flatplan 1 of 2 on the property.

 

And as you can see here, even just this 1/2 share of the 827m2 has a valuation of about $850,000

 

 

By contrast a freehold house, 5 doors down on the same street, with the same area (827m2) has a land value of nearly double

 

 

So moral of the story is that although freehold is best, buying cross-lease means one can stay in budget for the house & area they want, and still benefit from owning land and the increases in land value, whereas the equivalent freehold could be way out of one's price range.

 

Freehold best. Cross lease good (unless you want to extend/pick fights with your neighbors). Lease-hold bad.

 

ps. I bet you a bag of biltong that the houses on your street are cross-lease and not leasehold 

[hayleyearth]

Leasehold is the one for flats/apartments built on Iwi land. Freestanding houses on Leashold land are extremely rare (if they even exist at all).

 

ps. I bet you a bag of biltong that the houses on your street are cross-lease and not leasehold 

 

Oh goodness...it is classified as a leasehold

Here is a screen shot of the title document:

 

Here is the land plan showing it is separate standing houses:

[patches]

EDIT: Double post

Edited November 12, 2019 by patches