Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
My unit is one of 20 and is having issues with water tightness. The values are now land value and levies are up 250% most of the Levy's are being spent on lawyers no one has the money to fix the issues. The Unit Titles Act is an abomination
the council requirements for new housing is ghastly. a 3-4 bedroom townhouse commonly only has 1 off street park, and a row of new townhouses are supplied by a narrow driveway, which lead onto likely a narrow new road with no space for street parking.
Actually, in New Zealand, it is the central government, ie Wellington, that has forced local councils to allow new multiunit developments to have limited or indeed zero parking. In many areas including the Christchurch Central City where I live. In just one side of my street in one city block length... In my street since the 2011 Earthquake, many old single family houses have been demolished and in their places are the following all new builds... one house replaced by 3 units, with one parking space to share for all 3, then (3 old small house sections got amalgamated into one large section) a 4 storey structure of 31 units there are 7 car parks, one being a disabled car park space. and other single houses with their own parking demolished and replaced with , 4 units, 6 units, 11 units and 18 unit developments, all without one single off street parking space. (The 18 unit site was previously a small commercial site, with own parking). I did a count-up once and figured that on this one block, one side of this street, another 39 cars will be looking for a park on the roadside. Keep in mind this street was often fully parked out by city workers before the 2011 EQ as there are no time restrictions or payments and it is an easy walk into the city centre). I'd like to blame the local council, but the requirement to allow new medium-high density unit developments with zero parking space requirements, came directly from the central government in Wellington (the nation's capitol).
@@KiwiCatherineJemma I think it’s a good thing to limit spaces and therefore the use of cars. On the provision that suitable alternative means of transport is available. Look across Europe… this type of medium/high density living is common place. We all need to become more comfortable with this as the norm going forward.
@@sy210687 Yes.. "on the proviso that suitable alternative means of transport is available." So how does Wellington relate to Europe in this regard? That Wellington is the windiest city in the world (yes, that's a fact); it is a city built on a relatively tiny flat area (Te Aro and the Lambton area) with precipitously steep surrounding hills with narrow access roads mean cycling is at best only viable for the fit and even then only 25% of the year at best. Public transport is limited to buses which the geography and small population mean many journeys which would be 10 mins by car can be 1 1/2 hr ordeals of waiting and transfers. So what "norm" are you calling the perfect solution? Walking?
Regarding car parking for new developments... Actually, in New Zealand, it is the central government, ie Wellington, that has forced local councils to allow new multiunit developments to have limited or indeed zero parking. In many areas including the Christchurch Central City where I live. In just one side of my street in one city block length... In my street since the 2011 Earthquake, many old single family houses have been demolished and in their places are the following all new builds... one house replaced by 3 units, with one parking space to share for all 3, then (3 old small house sections got amalgamated into one large section) a 4 storey structure of 31 units there are 7 car parks, one being a disabled car park space. and other single houses with their own parking demolished and replaced with , 4 units, 6 units, 11 units and 18 unit developments, all without one single off street parking space. (The 18 unit site was previously a small commercial site, with own parking). I did a count-up once and figured that on this one block, one side of this street, another 39 cars will be looking for a park on the roadside. Keep in mind this street was often fully parked out by city workers before the 2011 EQ as there are no time restrictions or payments and it is an easy walk into the city centre). I'd like to blame the local council, but the requirement to allow new medium-high density unit developments with zero parking space requirements, came directly from the central government in Wellington (the nation's capitol).
The worst place to go to live life is city Centre . I haven’t been in city for more than 6 years. Parking is most stressful when I go there. And people in city Their face always look like🥵🥵🥵. I will avoid the city at all cost .
Will be interesting to see the selling data houses v townhouses in another 10-15 years given Ed's own admission that in the last couple of years townhouses make up 40% of new builds implying a bit of saturation in the market of that type. Looking back where townhouses were only a small percentage not only has a smaller sample but supply/demand dynamics are different
Long term Townhouses will perform like Apartments. I've seen apartments bought 2003/04 sell recently for losses. 20 years no gains. Townhouses will be similar.
Have a look at building consents over the last 20 years on tradingeconomics. We've just built a record amount of houses. More than the 70s. We're still consenting triple what we did 12 years ago
after one day looking at the issue, my conclusion is apartment or terrace houses or even connected twin units, has no much investment value and almost none capital gain potential in Auckland.
I've got no issue buying a townhouse if it's good value. But buying a new townhouse as an investment and expecting it to appreciate quickly (unless FOMO is strong) is a little like buying a brand new car and not expecting the value to drop once you drive it out of the shop.
Ed/Opes could you do a video on serviced apartments? like Queenstown has these for like $200k and me as a layman is thinking why aren't investors scooping these up. is there issues with them? is there hidden costs etc
@Opes Partners & @ Ed McKnight, you should’ve included the cons of dealing with a BCA/ RA as these are big concerns for potential investors. Also another consideration would be warranties on all the appliances as they have the potential to break down more often due to higher tenancy turnover. Another consideration is the insurance policy which is higher now that certain areas in NZ have been deemed higher risk than other areas, ie Wellington & Hutt Valley. All this equates to less $$ you get. In my opinion, our stand-alone rentals are less hassle & preformed better than our townhouses. If we were to invest in more property in the future we wouldn’t purchase anymore townhouses. Cheers.
In case you haven't noticed in other vids, Ed doesn't really cover actual negatives to anything they are actively involved in. Especially stating or running the $ costs of the cons. Hilarious that he chose to define "fallacy" in this vid as the definition summed up the way he selectively addresses cons to hold up the appearance of doing so.
town house will be worthless in 10-15 years, the market is smothered with town house especially with no parking everyone will want/pay and fight for a stand alone house with a front and back yard
Have a look at building consents over the last 20 years on tradingeconomics. We've just built a record amount of houses. We're still consenting triple what we did 12 years ago
I thought this way (not townhouse worthless but market would swing in preference of stand alone houses) appears the market does not agree with me as they are still building em and selling em! I see plenty of stand alones standing alone though I take the point of free land desirability proximity to central city however remote working and satellite suburbs change the dynamic even here in Hamilton where some say the desirable thing is leaving 😂 not me of course
There are so many factors that are at play including location and local population size to compare townhouse vs non townhouse landed property before arriving at conclusion on price growth and townhouse trap fallacy. In my area ppl are willing to pay $2.6 millions for a tiny townhouse in Auckland but no one will settle for a urban townhouse in Hamilton where we used to live for $600k. Then the same townhouse in AKL went up by 6% this year and the Hamilton one less than 0.5%.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
nice! once you hit a big milestone, the next comes easier.. who is your advisor please, if you don't mind me asking?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her a outlining my financial objectives and planned a call with her.
Can we differentiate between townhouses and terraces? There is a big difference..
My unit is one of 20 and is having issues with water tightness. The values are now land value and levies are up 250% most of the Levy's are being spent on lawyers no one has the money to fix the issues. The Unit Titles Act is an abomination
the council requirements for new housing is ghastly. a 3-4 bedroom townhouse commonly only has 1 off street park, and a row of new townhouses are supplied by a narrow driveway, which lead onto likely a narrow new road with no space for street parking.
Probably by intention to limit car travel.
Actually, in New Zealand, it is the central government, ie Wellington, that has forced local councils to allow new multiunit developments to have limited or indeed zero parking.
In many areas including the Christchurch Central City where I live. In just one side of my street in one city block length... In my street since the 2011 Earthquake, many old single family houses have been demolished and in their places are the following all new builds... one house replaced by 3 units, with one parking space to share for all 3, then (3 old small house sections got amalgamated into one large section) a 4 storey structure of 31 units there are 7 car parks, one being a disabled car park space. and other single houses with their own parking demolished and replaced with , 4 units, 6 units, 11 units and 18 unit developments, all without one single off street parking space.
(The 18 unit site was previously a small commercial site, with own parking).
I did a count-up once and figured that on this one block, one side of this street, another 39 cars will be looking for a park on the roadside.
Keep in mind this street was often fully parked out by city workers before the 2011 EQ as there are no time restrictions or payments and it is an easy walk into the city centre).
I'd like to blame the local council, but the requirement to allow new medium-high density unit developments with zero parking space requirements, came directly from the central government in Wellington (the nation's capitol).
@@KiwiCatherineJemma I think it’s a good thing to limit spaces and therefore the use of cars. On the provision that suitable alternative means of transport is available. Look across Europe… this type of medium/high density living is common place. We all need to become more comfortable with this as the norm going forward.
@@sy210687 Yes.. "on the proviso that suitable alternative means of transport is available." So how does Wellington relate to Europe in this regard? That Wellington is the windiest city in the world (yes, that's a fact); it is a city built on a relatively tiny flat area (Te Aro and the Lambton area) with precipitously steep surrounding hills with narrow access roads mean cycling is at best only viable for the fit and even then only 25% of the year at best. Public transport is limited to buses which the geography and small population mean many journeys which would be 10 mins by car can be 1 1/2 hr ordeals of waiting and transfers. So what "norm" are you calling the perfect solution? Walking?
Regarding car parking for new developments... Actually, in New Zealand, it is the central government, ie Wellington, that has forced local councils to allow new multiunit developments to have limited or indeed zero parking.
In many areas including the Christchurch Central City where I live. In just one side of my street in one city block length... In my street since the 2011 Earthquake, many old single family houses have been demolished and in their places are the following all new builds... one house replaced by 3 units, with one parking space to share for all 3, then (3 old small house sections got amalgamated into one large section) a 4 storey structure of 31 units there are 7 car parks, one being a disabled car park space. and other single houses with their own parking demolished and replaced with , 4 units, 6 units, 11 units and 18 unit developments, all without one single off street parking space.
(The 18 unit site was previously a small commercial site, with own parking).
I did a count-up once and figured that on this one block, one side of this street, another 39 cars will be looking for a park on the roadside.
Keep in mind this street was often fully parked out by city workers before the 2011 EQ as there are no time restrictions or payments and it is an easy walk into the city centre).
I'd like to blame the local council, but the requirement to allow new medium-high density unit developments with zero parking space requirements, came directly from the central government in Wellington (the nation's capitol).
The worst place to go to live life is city Centre . I haven’t been in city for more than 6 years. Parking is most stressful when I go there. And people in city Their face always look like🥵🥵🥵. I will avoid the city at all cost .
Will be interesting to see the selling data houses v townhouses in another 10-15 years given Ed's own admission that in the last couple of years townhouses make up 40% of new builds implying a bit of saturation in the market of that type. Looking back where townhouses were only a small percentage not only has a smaller sample but supply/demand dynamics are different
Long term Townhouses will perform like Apartments. I've seen apartments bought 2003/04 sell recently for losses. 20 years no gains.
Townhouses will be similar.
Have a look at building consents over the last 20 years on tradingeconomics. We've just built a record amount of houses. More than the 70s. We're still consenting triple what we did 12 years ago
They are great. I just bought one. Never regretted it.
lol really, for rent right ? You don’t live there right ?
@@jerrrytran5487 I do actually. why?
Be great to do a case study of some actual townhouse numbers, values etc. Possibly some of your own?😊
after one day looking at the issue, my conclusion is apartment or terrace houses or even connected twin units, has no much investment value and almost none capital gain potential in Auckland.
nice one, thanks for sharing, shout out from Albany
I've got no issue buying a townhouse if it's good value.
But buying a new townhouse as an investment and expecting it to appreciate quickly (unless FOMO is strong) is a little like buying a brand new car and not expecting the value to drop once you drive it out of the shop.
Try to live in townhouse , and enjoy with it
Ed/Opes could you do a video on serviced apartments? like Queenstown has these for like $200k and me as a layman is thinking why aren't investors scooping these up. is there issues with them? is there hidden costs etc
The kind of property you were probably recommending everyone buy in 2021 2022.
@Opes Partners & @ Ed McKnight, you should’ve included the cons of dealing with a BCA/ RA as these are big concerns for potential investors. Also another consideration would be warranties on all the appliances as they have the potential to break down more often due to higher tenancy turnover. Another consideration is the insurance policy which is higher now that certain areas in NZ have been deemed higher risk than other areas, ie Wellington & Hutt Valley. All this equates to less $$ you get. In my opinion, our stand-alone rentals are less hassle & preformed better than our townhouses. If we were to invest in more property in the future we wouldn’t purchase anymore townhouses. Cheers.
In case you haven't noticed in other vids, Ed doesn't really cover actual negatives to anything they are actively involved in. Especially stating or running the $ costs of the cons. Hilarious that he chose to define "fallacy" in this vid as the definition summed up the way he selectively addresses cons to hold up the appearance of doing so.
Fallacy 3:24
Be interesting to know also if the 'glut' of townhouses is in Auckland only and therefore, less of an issue elsewhere?
Nah Christchurch is slapping them up everywhere, the intensification is real, I would hate to live in a town house
Lower Hutt is full of them, but :
1. They tend to be built in low zones (typically state housing or industrial areas).
2. The quality is poor.
town house will be worthless in 10-15 years, the market is smothered with town house especially with no parking
everyone will want/pay and fight for a stand alone house with a front and back yard
Have a look at building consents over the last 20 years on tradingeconomics. We've just built a record amount of houses. We're still consenting triple what we did 12 years ago
I thought this way (not townhouse worthless but market would swing in preference of stand alone houses) appears the market does not agree with me as they are still building em and selling em! I see plenty of stand alones standing alone though I take the point of free land desirability proximity to central city however remote working and satellite suburbs change the dynamic even here in Hamilton where some say the desirable thing is leaving 😂 not me of course
Do you consider there to be a different between bodycorp townhouse and freehold townhouse?
There are so many factors that are at play including location and local population size to compare townhouse vs non townhouse landed property before arriving at conclusion on price growth and townhouse trap fallacy. In my area ppl are willing to pay $2.6 millions for a tiny townhouse in Auckland but no one will settle for a urban townhouse in Hamilton where we used to live for $600k. Then the same townhouse in AKL went up by 6% this year and the Hamilton one less than 0.5%.
No way they are worth it, I don’t want to live inches by my neighbours and some of these places the front door is right on the street, wtf?
Town houses are like Matchboxes one over the other...
Town houses are horrible....
The driveways are so narrow...