Helping to fix aucklands housing boom....

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Post Options Post Options   Likes (0) Likes(0)   Quote Capt Asparagus Quote  Post ReplyReply Direct Link To This Post Topic: Helping to fix aucklands housing boom....
    Posted: 10 Jul 2015 at 11:42am
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Interesting. I see that treasury has proposed a 1%tax on investment/rental properties in akld, to be paid direct to the council. This is to discourage people buying properties as investment/rentals, and cool the house price surge.
Give an average property value of...,say 600k as a minimum?, that means a $6000 a year tax for the landlords. That will mean, of course, an immediate rise in rentals of over $100 a week.
Gee, I can see that is really going to ease the burden on the lower income groups, eh!
Stupid stupid stupid.
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Post Options Post Options   Likes (0) Likes(0)   Quote KikBac Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jul 2015 at 11:51am
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Nothing ever got cheaper by taxing it
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Post Options Post Options   Likes (0) Likes(0)   Quote cirrus Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jul 2015 at 12:16pm
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Answer is simple. Modify our open door immigration policy. Auckland is an international property market ,not a local one. But would that happen. Not likely. Too much money involved for some who have influence . Free trade deal with China has plenty to do with it. Free trade is great for a few,but for the majority it is anything but free. It costs.

The tax mentality will make govt richer but everyone else ,including the productive sector poorer.
Taxation is not the answer,improved immigration policy and world class planning and foresight is.
We seem to lack both.
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Post Options Post Options   Likes (0) Likes(0)   Quote v8-coupe Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jul 2015 at 12:54pm
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Originally posted by cirrus cirrus wrote:

Answer is simple. Modify our open door immigration policy. Auckland is an international property market ,not a local one. But would that happen. Not likely. Too much money involved for some who have influence . Free trade deal with China has plenty to do with it. Free trade is great for a few,but for the majority it is anything but free. It costs.

The tax mentality will make govt richer but everyone else ,including the productive sector poorer.
Taxation is not the answer,improved immigration policy and world class planning and foresight is.
We seem to lack both.
Without this immigration creating demand our economy would look like it really should. Sad. This is another case of the Emperors new clothes.
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Post Options Post Options   Likes (0) Likes(0)   Quote cirrus Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jul 2015 at 1:45pm
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Cant disagree with that. We have a new industry. That is selling overpriced ,damp shacks to foreign investors. It is not the shacks they want,but the land. So we have allowed a new bubble to form,brings in much money. But there is a cost. Lower quality of life ,and infrastructure  that will be paid for by the original /long term aucklanders on behalf of the investors.
And when the bubble bursts will our rates fall back to pre bubble levels.??
Unearthed a real estate section from the herald.Year 2000. A nice villa in Sandringham for $195,000 or a Remmers 3 bed 2 bathroom for $495000.
Meanwhile back in bubble zone a Mt Roskill do up on half section ,not sub dividable ,sold this week for $975 000.
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Post Options Post Options   Likes (1) Likes(1)   Quote Capt Asparagus Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jul 2015 at 2:25pm
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Wish I had property in akld, Mannnnn..., rich as a rich thing. Question is, would I sell it and buy anywhere else in the country where everything is way less, or hold as an investment?
Of course, I would never sell it for the current market values as that would be socially irresponsible, I would sell it for 2001 prices, obviously. As, I assume, you guys would?
It is only my overwhelming natural humility that mars my perfection.

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Post Options Post Options   Likes (0) Likes(0)   Quote Steps Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jul 2015 at 5:57pm
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Answer is simple. Modify our open door immigration policy.
Yep would have agreed some 5 yrs ago.. but the number of homes short, the number of tradies/  labour to build, the infer structure required to service is now way too far behind to catch up in the next decade or so
Market forces are just to great for anything other than extreme  muldoon type wage/ price freeze measures to effectively curb the boom...or put another way.. it been let ge out of control with excessive population growth
The only thing that will be effective, will be market forces... when prices reach a piont that NO ONE is prepared to pay... and we have an exodus out of Auckland.. people cashing up and going to places like Tauranga.....which has happened in the past
Or maybe something like credit drys up due to drop in GDP and off shore debit gets excessive.....few indicators at the moment with droping international raw material prices, China economy shrinking
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Post Options Post Options   Likes (0) Likes(0)   Quote cirrus Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jul 2015 at 8:21pm
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Sad part of Aucklanders flocking to Tauranga is that Tauranga will slowly become more congested and gradually lose its quality of life.
And all the rates will go up to pay for new infrastructure such as roading and stormwater/sewerage and Auckland will repeat itself all over again.
So Tauranga people will cash up and move to --??? and on it goes.
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Post Options Post Options   Likes (0) Likes(0)   Quote Capt Asparagus Quote  Post ReplyReply Direct Link To This Post Posted: 10 Jul 2015 at 9:52pm
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Nah, heaps of room in Tauranga, out papamoa way, huge areas of flat land ideal for housing, near to beach etc, easy peasy.
It is only my overwhelming natural humility that mars my perfection.

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Post Options Post Options   Likes (0) Likes(0)   Quote cirrus Quote  Post ReplyReply Direct Link To This Post Posted: 11 Jul 2015 at 12:34pm
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Reading todays N.Z herald headlines we learn that 39.5 % of house buyers in Auckland are of chinese decent. What is not clear is are they  resident here or have never set foot in the place. But if suddenly there are 39.5% more  buyers of houses in a given area ,and that those buyers have generally more money at lower rates than other buyers then prices will naturally go through the roof (excuse the pun). Add to that significant migration from India ,U.K ,Europe & U.S ,plus ex pat Kiwis returning home and it is "Houston we have a problem". So a tax of 1% is neither going to be effective or relevant to the situation.
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Post Options Post Options   Likes (1) Likes(1)   Quote Kevin.S Quote  Post ReplyReply Direct Link To This Post Posted: 11 Jul 2015 at 1:26pm
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The solution is easy.  Change the law so only NZ citizens can own property, then give anyone who isn't a citizen but owns property 2 years to sell it before the government confiscate it to use as state housing.  Auckland housing boom gone overnight.
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Post Options Post Options   Likes (0) Likes(0)   Quote 1Daz Quote  Post ReplyReply Direct Link To This Post Posted: 16 Jul 2015 at 9:51pm
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Originally posted by Kevin.S Kevin.S wrote:


The solution is easy.  Change the law so only NZ citizens can own property, then give anyone who isn't a citizen but owns property 2 years to sell it before the government confiscate it to use as state housing.  Auckland housing boom gone overnight.


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Post Options Post Options   Likes (0) Likes(0)   Quote pjc Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jul 2015 at 8:38am
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not defending ak house prices,but in reality if I was approaching retirement and wanted to down size or move to a quieter location would i be fussy as to who brought my home?
example house/land  $750k a young kiwi couple offer me $740 and a overseas buyer offered me $770k of course i would take the higher offer and no doubt everyone here would too!
yes might of only paid $250k 20yrs ago but that profit would soon get eaten up in retirement home fees if i need that kind of a assistance.

There is no simple answer,move out of ak along with 200th people to tauranga/kerikeri and what do you think will happen to house prices in those areas?
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Post Options Post Options   Likes (0) Likes(0)   Quote Capt Asparagus Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jul 2015 at 9:04am
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That's right, house prices go up in the surrounding areas. Means the money moves around.
This housing price thing is and always has been a huge beat up, I just don't get it.
For every person wanting to buy a house and pay as little as possible, there has to be someone wanting to sell their house for as much as possible.
What if evil mr chingchong was banned fro buying houses, huge disincentives were put on people to buy or own more than one property (oh, I hasten to add, saying evil mr chingchong was not me being racist, as I actually have no problems with the Chinese, but rather was poking the borax at those out there who seem to have an evident anti Asian bias, not necessarily anyone posting here either, I was being sarcastic), and marvel of marvels, house prices in Auckland did crash, all those million dollar house crashing to a decent affordable price of say half a million.
Hooray! All those young folks would again be able to buy their first homes! Yay!
But.....anyone of you Auckland guys who actually own your own homes at the moment, you have just lost half your equity. Banks, if you are under a mortgage, will foreclose on you as you will now be massively overexposed on your lending.
And if not over exposed in the lending, of course any hopes you had of selling your house in the long run to be able to afford to move somewhere nicer will be blitzed.
Imagine the screams then from the media, Pensioners destitute! Lifes savings wiped in house price collapse!
Is there any major national city in the civilised world where house prices are not skyrocketing? Sydney, Asia, Canada, Europe? Nope.
The main cause for the high prices and growth is the limited supply. That is the easiest problem to solve....get your bloody council to free up more land for housing. Then the problem will be solved.
How many here are looking with glee at their rocketing house value, thinking of their futures After They Sell Up? That is, of course, until your rates spike upwards due to the change in your house value, another thing that amazes me, that councils can charge more rates for absolutely no increase or improvement in services, it really is a back door capital gains tax applied to everyone before you even realise your capital gain!
Everyone demand Government magically fix this house price problem. A couple of years back, there were screams as people lost homes in a price drop because banks were lending almost 100% of house loans to young folks buying houses, so in response to this outcry, the govt decreed that buyers need at least ten percent equity before the can get a loan to buy, not just in Auckland, but anywhere in NZ.
That brainwave, to fix another media beat up, now means a lot of young couples simply cannot afford to get started on owning their own place. The unintended consequence of government interference in the process.
That is why I just do not like at all the idea of government being forced by populist politics to meddle in this area. For every winner, there will be a loser. The losers will be those who own their own properties now. ALL owners.
It is only my overwhelming natural humility that mars my perfection.

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Post Options Post Options   Likes (0) Likes(0)   Quote Dagwood Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jul 2015 at 9:48am
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How 'bout taking some pressure off by incentivising businesses to move or establish themselves out of Auckland in towns where the infrastructure is there or can be more easily established.

You don't have to drive far from Auckland to see towns with under ulitised infrastructure good rail links, close to ports etc that are crying out for employment opportunities. Skilled workers could be attracted by life style and the ability to get a good home (possibly brand new as there's plenty of land) at a much more affordable price.

Instead our supercity is paying a fortune to have "ambassadors" dotted around the globe trying to attract more businesses into Auckland which must only compound the problem.

Is this a blend of madness and stupidity or what am I missing?
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The overseas trend(europe?)is to rent rather than buy.   Just along the road from here is a new development "Addison park" and for a new house built on top of a old swamp/peat is around $650k?  Opening up more land would be great for new home owners but there would need to be stricter controls on quality. from my own observations there is no standards set. Some of these new homes you can see cracks appearing as ground works(I presume) done in hast  
If the market drops, $1 million homes down to $750?still paying mortgage on the $1m,so then one is stuck owning/living till market rises,who would take $250k drop?
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Post Options Post Options   Likes (0) Likes(0)   Quote Capt Asparagus Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jul 2015 at 11:50am
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Absolutely Dagwood.... Places like Tauranga you would think would be an ideal alternative to being akld based....no traffic woes, relatively cheap housing, a way more efficient port operation, the question I think is why would anyone want to be based in Auckland these days? That is, if you are not dealing with public sales. But wholesale distributors? Mate, cheaper land, better lifestyle etc etc, come onnnnn!
It is only my overwhelming natural humility that mars my perfection.

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Post Options Post Options   Likes (0) Likes(0)   Quote rustler Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jul 2015 at 12:33pm
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About 20 or so years ago a bunch of idiots in the Auckland Regional Council decided we should have urban limits and now this policy is taken over by the current idiots in Auckland council, hence a shortage of residential land and obstructive policies to development.
Solution is simple, allow subdivision of any land in the greater Auckland area from Warkworth to Bombay of say a minimum lot size of .5 ha which is sufficient to provide wastewater disposal on site, such a policy would allow hundreds if not thousands of extra sites 
Buyers would have a choice of 600sqmtr  in somewhere like Millwater or 5000sqmtr a few kms further out around Wainui or Waiwera for example.
the sole cause of the current housing predicament is directly attributed to the incompetentcy of the Auckland Council planning.


'Politically Correct' a misguided bunch of morons who think they can pick up a piece of **** by the clean end.
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Post Options Post Options   Likes (0) Likes(0)   Quote Kevin.S Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jul 2015 at 12:48pm
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Auckland councils greed must play a big part in house prices.  I read about a woman who put a second house on her section for her in-laws to live in.  Not sub divided or cross leased, just a second house on a single section.  Consent fees and costs were $50,000 then she had to pay a $25,000 contribution (not sure what this was for) then a fee of $40,000 to connect the new property to the drainage system.  That's over $100k in fees, before any building costs or the cost of the land.  No wonder houses cost so much.  I asked about putting a skyline garage up and was told consent fees would be $2,000 to $3,000.  Needless to say I didn't bother.
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Post Options Post Options   Likes (0) Likes(0)   Quote makka Quote  Post ReplyReply Direct Link To This Post Posted: 17 Jul 2015 at 1:00pm
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I think Dagwood and asparagus have hit the nail on the head!
I have recently bought a house in wellington, I paid a third of what I would have paid for the equivalent house in Melbourne where I was
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