@dartmanii Definitely, you don't want your friends and family having to move two hours away or even to another country just to have a place to live.
A sea of red for the housing market. Bigger and faster falls than GFC. Wellington down 20%, Auckland down 15%.
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emerald1000
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heatherb1993
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anxiousonthebrightside
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@heatherb1993 I know it sucks but hopefully you can take some solace in the fact it will be worth more again one day. If you're planning on living in it for the next 20years I'm sure you'll see some great improvement in value.
resjudicata
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@anxiousonthebrightside Not necessarily, it often takes several decades for prices to recover after a crash. I don't think anyone should feel "sure" about the future direction of the market.
anxiousonthebrightside
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@resjudicata It doesn't usually take several decades, it usually takes several years. The last crash in 07 took 7 years for prices to recover.
resjudicata
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@anxiousonthebrightside 07 was not a crash, it was a small dip.
This isn't a crash yet either, but it's looking fairly likely to become one.
This isn't a crash yet either, but it's looking fairly likely to become one.
mynameishephzibah
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@anxiousonthebrightside 10 years easy
@heatherb1993 Dont feel sad - we bought when the market was hot and couldnt afford a new build (we were just short about 50ish k). Ended up buying a 30yo house (still younger than me, considering all those houses which were built 70s and we viewed). If you plan to live in it and can service the mortgage - just accept it and carry on. You are just missing that Tesla you could have bought otherwise, but…so be it mate. Life is not always a win win…
anglocatholicshrops
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@heatherb1993 Let's start a support group 
heatherb1993
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@anglocatholicshrops I'd say "I'm glad there's more of us" but really I wish there was none of us who needed this support group!
valpal1123
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@heatherb1993 Means nothing if you don’t plan on selling it as soon as it’s built….
childofgod1115
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@valpal1123 How do you figure? If they had to borrow 100k more than their neighbours then they're paying an extra $100+ per week to live in the same situation.
Having $100 extra per week makes a huge difference in quality of life, whether you spend it or invest it.
Having $100 extra per week makes a huge difference in quality of life, whether you spend it or invest it.
valpal1123
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@childofgod1115 I’ll eat a shoe if it’s 100k difference
resjudicata
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@valpal1123 Why wouldn't it be? A Wellington house that was worth $1m in October is worth about $800k now, based on the HPI data.
valpal1123
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@resjudicata Houses are worth what people will pay for them. A friend just sold a 3 bed 2 bath house in onehunga for 2.2m and it definitely wasn’t “worth” that.
resjudicata
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@valpal1123 The fundamental value is the price at which the rate of return (annual rental profit divided by price) is similar to other investments - usually about 4%. This equation is similar for FHBs, but for them the return is not having to pay rent, rather than receiving it.
When people pay more than the fundamental it's usually for speculative reasons (FOMO or greed) which tend to more or less disappear in a falling market, so prices retreat much closer to the fundamental value
When people pay more than the fundamental it's usually for speculative reasons (FOMO or greed) which tend to more or less disappear in a falling market, so prices retreat much closer to the fundamental value
globalharvest
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@valpal1123 I know you are trying to be supportive but it does mean something. It means they will be overpaying on the same asset.
@globalharvest I saw a girl on tiktok in Canada, she was on there talking about how she put an unconditional offer on a house but now can't get the lending and might lose her deposit so she has started a gofundme lol
valpal1123
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@globalharvest But they got first pick so hopefully picked a good one.