Comments on: The housing market is over valued – so what? http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what A blog for New Zealand landlords and property investors Thu, 09 Feb 2012 07:09:47 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: marty http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what/comment-page-1#comment-112 marty Sun, 20 Apr 2008 22:47:31 +0000 http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what#comment-112 just a real pleasure to read these comments just a real pleasure to read these comments

]]> By: Ross Pullan http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what/comment-page-1#comment-108 Ross Pullan Sat, 05 Apr 2008 07:47:56 +0000 http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what#comment-108 The property market may fall. Who really cares?! It is only a short term problem of say 4 to 5 years at max. most probably alot less as property cycles are around 7 to 9 years. In the end things will increase again,this is the nature of the beast. As for house prices being over valued. The truth is the average wage is 30% under valued. In some cases it maybe closer to 50%. As many experts have said we are living in a world economy. So on a world stage, they are not undervalued. Lastly I don't know of another country anywhere that will allow people living overseas to purchase land in their country, Unless they are citizens of that country. The property market may fall. Who really cares?! It is only a short term problem of say 4 to 5 years at max. most probably alot less as property cycles are around 7 to 9 years. In the end things will increase again,this is the nature of the beast.
As for house prices being over valued. The truth is the average wage is 30% under valued. In some cases it maybe closer to 50%. As many experts have said we are living in a world economy. So on a world stage, they are not undervalued. Lastly I don’t know of another country anywhere that will allow people living overseas to purchase land in their country, Unless they are citizens of that country.

]]> By: dave milich http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what/comment-page-1#comment-107 dave milich Fri, 04 Apr 2008 03:25:41 +0000 http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what#comment-107 You are so right.....I am hearing all the time thet workers are getting payed $12 an hour...when I was paying my workers $10 years ago... Croatian's are paying 1500 Euro for a squere meter of appartmant and as of the house God help you. I have a few rentals and I am putting the rents up as thay are comming for renewal...rates...interest have all gone up...so I am looking for a good cash flow. Nice to see somebody sees the present situation in the right light. Chers for now Dave You are so right…..I am hearing all the time thet workers are getting payed $12 an hour…when I was paying my workers $10 years ago…
Croatian’s are paying 1500 Euro for a squere meter of appartmant and as of the house God help you.
I have a few rentals and I am putting the rents up as thay are comming for renewal…rates…interest have all gone up…so I am looking for a good cash flow.
Nice to see somebody sees the present situation in the right light.
Chers for now
Dave

]]> By: B Kennedy http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what/comment-page-1#comment-106 B Kennedy Fri, 04 Apr 2008 00:53:19 +0000 http://www.landlords.co.nz/blog/the-housing-market-is-over-valued-so-what#comment-106 It irks me not a little to read (and hear) constantly, that houses are over valued by 30%. By international standards, they are not! If you consider the main criteria by which such judgements are made, namely cost relative to income, there is another obvious answer to the problem : we are underpaid by 30%. We know that compared to Australia, our middle and lower income earners suffer and we know that the problem is way more serious than anyone appears willing to admit. Sadly, like impotence, everyone knows it's an issue but no-one wants to admit to it. Who wants to admit they are struggling to feed and house their family? If, as predicted, wages increase by 5% pa over the next 5 years and if houses stay relatively static, balance will be achieved. It still doesn't mean that houses are over-valued and it shouldn't need those who were unlucky enough or timid enough to miss the last cycle to pray for those whose (often) modest wealth is tied up in property, to lose their capital. It irks me not a little to read (and hear) constantly, that houses are over valued by 30%. By international standards, they are not! If you consider the main criteria by which such judgements are made, namely cost relative to income, there is another obvious answer to the problem : we are underpaid by 30%.

We know that compared to Australia, our middle and lower income earners suffer and we know that the problem is way more serious than anyone appears willing to admit. Sadly, like impotence, everyone knows it’s an issue but no-one wants to admit to it. Who wants to admit they are struggling to feed and house their family?

If, as predicted, wages increase by 5% pa over the next 5 years and if houses stay relatively static, balance will be achieved. It still doesn’t mean that houses are over-valued and it shouldn’t need those who were unlucky enough or timid enough to miss the last cycle to pray for those whose (often) modest wealth is tied up in property, to lose their capital.

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