Property boom on horizon - expert

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Tue, 10 Jul 2012 7:29a.m.

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A leading property commentator says another property boom is on the horizon and next time the bust could be bigger than the last.

A leading property commentator says another property boom is on the horizon and next time the bust could be bigger than the last.

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10/07/2012 5:34:03 p.m.

Meghan wrote:

I'm sitting on my hands now waiting for interest rates to rise in a couple of years. People buying today will struggle with a couple of percentage points rise in interest rates. Investment returns in Auckland are pathetic, so it's only owner-occupiers paying far too much for cold damp boxes in Auckland. Unfortunately those home loan repayments have to come out of the family budget. Once interest rates rise, they will struggle. At present it is less risky to sit on your money and rent a property in Auckland. You can also rent something much nicer than you could afford to buy. It's a no-brainer.

10/07/2012 3:59:46 p.m.

Harris wrote:

If prices are up a lot, why is the GV rates so small.

10/07/2012 1:16:36 p.m.

Mike wrote:

Yeah but in Tauranga the union workers actually work vs go on strike for socailble hours. Ports of Auckalnd vs Tauranga illustrates that well.

Is a world of difference.

The rise in prices is reflective of a housing shortage. 2 places in the country with a housing shortage pushing prices up a lot, Auckland due to the RMA, and Christchurch due to the quake.

Elsewhere we haven't really had a house bubble burst in that prices have hardly lowered anywhere, but the number of homes selling has dropped considerbly so real estate agents have definately felt the recession.

Surely Gareth has studied economics, like Supply and Demand? The RMA has squeezed new development causing a shortage - so what happens to the price when supply is squeezed? Thats like high school economics, let alone tertiary education! Its not that the housing is over valued, thats the current value due to the housing shortage.

If not like the house prices, can always live elsewhere. Nobody is forcing everyone to live in Auckland.