Latest figures - click to enlarge or click the link below to download a PDF of the full report
The latest figures from the US make interesting reading. Click this link to download a PDF (125k) of the full report from the National Association of Realtors®
Hi Olly
If you were selling a property in the current market, and buying another property, would you think it was better to buy a property at the same price you sold for ….. or for more and get a mortgage, or less and save the difference???
Thanks, Caroline.
Dear Caroline
If you can find a nice house for less than what you sold for, and save the difference that would be a good idea.
In theory it works well, but in practice people often get frustrated when selling down as the house they move down to is not as nice as the one they left.
Cheers
Olly
Dear Mr Newland Do you think Auctioning a property in ‘rooms’ against ‘on site’ has any influence on the bidding outcome?
- R
A lot depends on the setting and the weather.
If the setting is very nice then on site is preferable, but if the setting is nondescript — or the weather doubtful (such as the middle of winter) then rooms are better.
Cheers
Olly
Read Bob Dey’s article based on latest CB Richard Ellis figures:
Worth noting.
Read this article at the NZ Herald:
I predicted this 6 months ago and it is coming true.
You can put the blame on two things:
(1) The Government’s discouragement of property in investment by changing tax laws in last years budget to dampen investment and remove tax beaks.
(2) The huge slow down in building consents partly caused by over anxious lending by banks, higher deposits required, and the effects of (1) above.
As fewer investors buy into the rental market (and more investors get out of the rental market)
the situation will only get worse — much worse — for renters.
The inevitable result will be higher rents, and unfortunate stories of squalor and over-crowding.
I said in an earlier article that the Budget-announced changes to depreciation were nuts …
Kiwi Income first to reverse IAS12 tax liability – unitholder funds up $214 million
Kiwi Income Property Trust is the first New Zealand listed property entity to reverse the deferred tax liability that sent so many entities spiralling to huge paper losses.
The reversal comes about through an amendment by the International Accounting Standards Board to IAS12 – income taxes.
The unintended consequence of large writedowns under IAS12 arose out of the Government’s decision in its 2010 Budget to strike out depreciation allowances on building structures (or building shells). As a result of that change, building owners such as Kiwi Income were required to provide for a deferred tax liability which wouldn’t crystallise even if their properties were sold.
For Kiwi Income, the amendment will have the effect of reversing the one-off deferred tax liability of $143.9 million (with a corresponding decrease in deferred tax expense) recognised in the trust’s financial statements for the September 2010 half-year which arose as a result of the removal of the depreciation deductions.
In addition, previously recognised deferred tax liabilities in respect of unrealised revaluation gains & deductible capitalised costs of $69.9 million (as at 30 September 2010) will also be reversed. The net effect of these entries will be an increase in unitholders’ funds of about $214 million. …
Read on at Bob Dey Property Report
Investment properties a stepping stone
ANNELI KNIGHT www.stuff.co.nz 19 Jan 2011
Soaring property prices have made it difficult for many first home buyers, but there is another way to enter the property market. Buying an investment property before your first home is a good way to start building an asset portfolio to help you get ahead.
Michael Furlong, director of MAP real estate, was renting until last year, when he bought his first home at the age of 39. However, his first home was not his first time in the property market; he had bought and sold 18 properties before finally buying his dream home. He says there is a big difference between being a renter and a renter who is also an investor.
“The way you win is to have all of your money work for you throughout that phase that you’re still renting. The term I use is a ‘professional renter’,” he says.
Furlong says there are many reasons why it can be a good strategy to buy an investment property before your home.
“You’ll be able to afford to live in a much better property as a tenant than what you could if you were to buy it – we were living in a A$700,000 or A$800,000 property and only paying A$550 a week [in rent]. As a professional renter you’ve got a much better property for a smaller amount of money for your own personal use.”
Furlong says it also doesn’t suit many people to solidify their first home until their late 30s. …
Read on at stuff.co.nz
Hey Olly, As you know the major banks have really tightened the screws on lending now. I am trying to work out a way to buy another house without the need for a large deposit that the banks would require.I have a good lending history with my local bank and was wondering…..
When you eventually find a good deal, and say the property has a valuation of $210,000 And you strike a deal with the vendor for $170,000 can you use the equity you would have straight away as a deposit, that the bank would require for the loan?. Even if you only had $10,000 cash as deposit could the bank use the equity as a top up for the deposit?
Any help on this would be much appreciated. I have enjoyed reading your books and Keep up the good work and support you give to us investors!.Cheers Lyndon
Dear Lyndon
Yes the bank may use the current equity to top up your deposit for some other, but that would depend how much equity you do have.
If you have say 50/50 equity the bank may lend you another 20%-25% plus your deposit plus a mortgage on the new purchase
Cheers
Olly
