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

[patham]

My only question. How are people affording these prices?

 

I have a good job; I think. As part of life, my wife took 9/12 months off this year to be with our son. Earnings have been significantly reduced because of this. But despite two full years of very good saving ethic, we are still likely two years away from having a deposit. And I'm only talking about a $700,000 place.

 

So my second question. Am I doing something wrong?

 

Hey Ross

 

In Aus, I think it is a case of a two speed economy demographic developing. People who are already in the property market get the boost from the higher prices from what they are selling. People who have yet to buy their first property just get to see that entry level price escalate further and further out of reach.

 

And at the moment, assuming you have a good deposit you avoid the interest rate penalisation and mortgage lenders insurance and hence the interest rates and hence repayments are cheap, which is a strong factor in why the prices are rising.

 

I do think some people speculate to try and get ahead, by building up a buy to let portfolio starting in places where $350k will buy a place - but that is time and effort. Others just say full steam ahead and damn the torpedos and buy with the lowest deposit a bank will accept, and pay the surcharge every month after (and pray interest rates do not rise). Both these strategies would not suit someone who is risk-adverse. 

 

The other key factor is that Australia is not budget friendly for a family on a single income, you can get by but it's hard to get ahead. Not that it's necessarily budget friendly for a dual income with kids, in their first few years before school childcare costs can suck up a lot of cash.

[patches]

Hey Ross

 

In Aus, I think it is a case of a two speed economy demographic developing. People who are already in the property market get the boost from the higher prices from what they are selling. People who have yet to buy their first property just get to see that entry level price escalate further and further out of reach.

 

 

Wasn't there a statement in Aus 2yrs ago where de Brenni that said more people bought their 7th house than their first.

 

Whilst it was later determined that his statement was not entirely correct, I'm sure it didn't come outta nowhere and the ratio of multiple home owners to first time buyers is likely pretty close.

[RossW]

Hey Ross

 

In Aus, I think it is a case of a two speed economy demographic developing. People who are already in the property market get the boost from the higher prices from what they are selling. People who have yet to buy their first property just get to see that entry level price escalate further and further out of reach.

 

And at the moment, assuming you have a good deposit you avoid the interest rate penalisation and mortgage lenders insurance and hence the interest rates and hence repayments are cheap, which is a strong factor in why the prices are rising.

 

I do think some people speculate to try and get ahead, by building up a buy to let portfolio starting in places where $350k will buy a place - but that is time and effort. Others just say full steam ahead and damn the torpedos and buy with the lowest deposit a bank will accept, and pay the surcharge every month after (and pray interest rates do not rise). Both these strategies would not suit someone who is risk-adverse. 

 

The other key factor is that Australia is not budget friendly for a family on a single income, you can get by but it's hard to get ahead. Not that it's necessarily budget friendly for a dual income with kids, in their first few years before school childcare costs can suck up a lot of cash.

I agree completely with the two-case economy. I used to tease myself by browsing Domain with a price range filter applied; <= $650,000. I had some good options pop up about 12 to 18 months ago. Now, I can only find houses which are clearly rentals with >20 years of neglect in them or wood cutters cottages more than 15km from the city.

 

And you're quite right about living on a single income. We manage fine but there is no saving for holidays and luxuries and certainly nothing going to property deposits. It perhaps makes me feel a bit more normal to hear that it's not all in my head because I can't shake the feeling of being left behind.

[patham]

 

 

And you're quite right about living on a single income. We manage fine but there is no saving for holidays and luxuries and certainly nothing going to property deposits. It perhaps makes me feel a bit more normal to hear that it's not all in my head because I can't shake the feeling of being left behind.

 

On arrival here, we were a single income family for about 8 months whilst my wife got her paperwork, exams and approvals for her professional qualifications in place. As a result I had all the accounts, debit orders, rent etc. coming off my bank balance. It wasn't end of the month Salticrax time, but I needed to run a tight budget. And a house purchase was only possible with funds brought in from SA, not built up locally.

 

So you are in the normal range, - the silent majority. Unfortunately, the boiler room tactics of the estate agent industry and the press in general only focus on the hype and the "I was a 18 year old Macca's worker and I was able to grow a 25 house property portfolio" stories.

[Wayne Potgieter]

"I was a 18 year old Macca's worker and I was able to grow a 25 house property portfolio" stories.

Good to see thats not an exclusively Kiwi thing either.

[DJR]

We have just put UPVC windows and double glazing in all the windows in the CT apartment.

It makes a huge difference.

I always marvel that Cape Town in particular has not adopted double glazing. Says the guy who lives in an old Victorian wind tunnel.

Edited December 21, 2020 by DJR

[Kranswurm]

I always marvel that Cape Town in particular has not adopted double glazing. Says the guy who lives in an old Victorian wind tunnel.

It's the answer.Very expensive.R100K for a two bedroom apartment and we still need to do the storeroom.Maintenance free apart from the hinges and latches.

Warm in winter and cool in summer.

I really can recommend it.

[DJR]

................Very expensive.R100K for a two bedroom apartment......................

...........I'll have to rob Elon MusK to do my ramshackle old house. Every sash window and every door fits so poorly that when the wind blows it sounds like a wood-wind and percussion band

Edited December 21, 2020 by DJR

[Hairy]

I always marvel that Cape Town in particular has not adopted double glazing. Says the guy who lives in an old Victorian wind tunnel.

depends what you are trying to achieve with the double glazing

[patches]

I always marvel that Cape Town in particular has not adopted double glazing. Says the guy who lives in an old Victorian wind tunnel.

 

 

A former colleague down in Christchurch laughed at the whole double-glazing thing, and how Kiwis think of it as such a luxury feature.

 

He's from the UK and said most of his projects there (Building Services Engineer) specced triple glazing. Double Glazing was considered too inefficient. 

 

It's the answer.Very expensive.R100K for a two bedroom apartment and we still need to do the storeroom.Maintenance free apart from the hinges and latches.

Warm in winter and cool in summer.

I really can recommend it.

 

 

...........I'll have to rob Elon MusK to do my ramshackle old house. Every sash window and every door fits so poorly that when the wind blows it sounds like a wood-wind and percussion band

 

I haven't even had a peak at what it would cost here. I'm guessing our little 115sqm bungalow would be around $20k - $30k.

 

Loads of people here opt to replace the entire vintage native timber window with aluminium look-a-likes that have double glazing pre-installed, but that seems a little sacrilegious.

[davetapson]

A former colleague down in Christchurch laughed at the whole double-glazing thing, and how Kiwis think of it as such a luxury feature.

 

He's from the UK and said most of his projects there (Building Services Engineer) specced triple glazing. Double Glazing was considered too inefficient. 

 

 

 

 

I haven't even had a peak at what it would cost here. I'm guessing our little 115sqm bungalow would be around $20k - $30k.

 

Loads of people here opt to replace the entire vintage native timber window with aluminium look-a-likes that have double glazing pre-installed, but that seems a little sacrilegious.

Used to go skiing in Switzerland when I lived in the UK.  All the chalets/apartments were triple glazed.  When you look out over houses covered in snow and it's all nice and cozy, you see the point.

 

The other thing when houses are covered in snow, you can see straight away where the heat is escaping - the snow melts.  On Swiss houses, there ain't much melted snow.

[Wayne Potgieter]

Anyone on here looking to get rid of a 26inch bike?

 

My 11 year old son has outgrown his 24inch and it's time for his next bike.

 

26inch bikes are like hens teeth.

 

He can fit on his moms small 27.5inch Giant trance, so I might also consider something like that but in XS.

 

Ideally a full suspension, but will happily consider well specced hard tail.

[patham]

Anyone on here looking to get rid of a 26inch bike?

 

My 11 year old son has outgrown his 24inch and it's time for his next bike.

 

26inch bikes are like hens teeth.

 

He can fit on his moms small 27.5inch Giant trance, so I might also consider something like that but in XS.

 

Ideally a full suspension, but will happily consider well specced hard tail.

Postage would have been a problem in any event but I have already donated my old 26” dual system to my son’s buddy.

 

When my son outgrew his 24” we got him a Trance junior- which is the 27.5 Liv ( Trance) in XS with 26” wheels. The Trance is a good basic shape for the little guys as the bent top tube gives great standover height.

[Wayne Potgieter]

Happy New Year all you SafriKiwis/aussies.

 

Back at work today and I am already over it.

[davetapson]

To you too mate.

Indeed.

[patches]

Anyone on here looking to get rid of a 26inch bike?

 

My 11 year old son has outgrown his 24inch and it's time for his next bike.

 

26inch bikes are like hens teeth.

 

He can fit on his moms small 27.5inch Giant trance, so I might also consider something like that but in XS.

 

Ideally a full suspension, but will happily consider well specced hard tail.

 

I might just have something...

 

I have a Morewood Sukuma trail bike that is gathering dust. You're welcome to take it for a few weeks of test riding to see it it fits and if he likes it.

 

EDIT:

 

I also have a Morewood 4X prototype, that would be a great fit. I'm not too keen on selling, but it's also gathering dust and he's welcome to use it while he grows.

Edited January 10, 2021 by patches