First home...

[ron48170]

@alannasteph Yeah I noticed when I looked through this place I couldn’t see anything noticeable but it certainly felt “wavy” underfoot.. I should probably look more into this lol

 

[alannasteph]

@ron48170 Like I said the house has probably been like that for 50 years and could be ok for another 50 but it depends if you can live with it or not. The problem is, Dunedin market is crazy at the moment and you don't really have any options for under 400k. If you have some money to spend on a bit of renos that really helps

 

[ron48170]

@alannasteph Yeah I can definitely live with it - do you know if it affects anything else, like insurance ?

 

[jankhurram]

@ron48170 Talk to your insurance company ASAP with the address and they'll be able to tell you.

 

[judilyn55]

@ron48170 Investors aren't going to overpay. Speculators might. But usually places that sell above actual market value (note CV is not market value) go to owner-occupiers, because investors won't buy a property that can't pay its own mortgage and expenses.

Well, more accurately, investors have different values of acceptable, ranging from almost paying its own expenses, all the way up to "if it doesn't cash flow 100pw after everything is paid, I'm not buying it". The ones who are willing to put like 20pw towards the house in addition to rent, have probably decided it's worth the extra few grand over a few years and by then rent will be raised enough to cover cashflow.

Rent goes up. House prices go up. Your mortgage payment...technically does if interest rates rise, but nowhere near the extent that the other two move.

 

[ron48170]

@judilyn55 By “investors” I sort of meant a fair amount of 50-60 year olds looking for a second property to use as a rental - thing is that real estate agent also sent out a thing saying it’s rent could be $450 a week and I know based on what are mortgage repayments would be, that would cover it and by 150$ a week

Ofc they aren’t guaranteed that but I can see it maybe getting a bit of interest and pushing it just out of our price range ? I’m not sure though

 

[2x4]

@ron48170 Don’t wait, buy one now. We just got our first home. Your mortgage pay may similarly to your rent. Since you two both like the house, I would suggest make your best offer $400k. The time and energy you spend on keep looking else houses are too much. It was a lot of stress for us.
And good luck for your journey! It’s a big step

 

[lindapetersenjohnson]

@ron48170 The market isn't going to drop anytime soon, if at all.

I wouldn't worry about overpaying by 15k. Thats not alot of cash to worry about in the grand scheme of things.

I regret not going in with our biggest offer and missing out a number of times. If I was you, and you like the house. Pay the money & cross your fingers.

 

[jpnewsom_]

@ron48170 Having a bunch of investors viewing the property is better than a bunch of first home buyers - investors usually have a pretty good idea of the places value and don’t get emotionally attached. You should be able to get a ballpark figure by checking out similar house sales around it. This is a much better measure than CV.

Edit: as for whether the market will drop in the near future, nobody knows. What we do know is that the long term trend is UP and many who have waited for it to drop have lost out. My view is that current reserve bank monetary policy will see the rise continue for some time.

 

[catholics_r_christians]

@jpnewsom_

Having a bunch of investors viewing the property is better than a bunch of first home buyers - investors usually have a pretty good idea of the places value and don’t get emotionally attached.

That may be true in normal circumstances but right now too many of them are trying to get in at once before the LVR is likely reinstated.

 

[lilyheart]

@ron48170 If you have a crystal ball that can predict house prices in NZ please do share. In the mean time take advantage of the low interest rate and get in the market if you can. Your deposit sitting in the bank isn't making much money for you with the low term deposit rates the banks are offering.

Set your self a price you are comfortable and realistic with and go for it. Houses prices will only go up IMO, even in Dunedin haha. Perhaps not as crazy as Auckland but you won't be losing money.

 

[lilyheart]

My parents first home in Auckland was $200k, they sold for $1 mill after 10 years. Damn it's ridiculous but if you can get in the market why not?

 

[liannemomi]

@lilyheart Well, yeah, it's a good old centrally subsidised and supported welfare scheme, in reality. Money being pumped in via subsidies and the Reserve Bank to enrich asset holders.

 

[boomstheory]

@lilyheart I just consulted my crystal ball it says wait until this same time next year and see how everything looks.

 

[ron48170]

@lilyheart Good point - thank you!

 

[shyla]

@ron48170 Rule 1: Don't fall in love with a house

Rule 2: There's always another house

I'd say you need to spend a bit more time driving around open homes to get a feel for the market too.

 

[jemgirl81]

@ron48170 In 10 years time do you think you’ll of over paid?

Or will you be thinking damn I’m glad we bought when we did.