A family has now moved in to the property I purchased, with an Alarm system to go in very shortly along with some landscaping to be done to make it nice.
I have noticed many houses that were for sale have since gone straight into the rental pool. Anecdotally, it appears to be happening all around the country. Consequently, should the trend continue, I would not be surprised to see that we eventually end up with a nationwide Rental glut at some point. May be the tables will then finally turn in favour of tenants and instead of Renters scrambling for properties to rent, Landlords would be scrambling for Tenants.
We don’t know how long this low interest rate environment is going to last. The government to be honest (both current and past) have been exceedingly coy as to their apparent lack of will do actually do anything concrete about the housing affordability and the accelerating inequality in this country.
Was originally aiming for an existing house that was a few years old, Built post Christchurch earthquake and was less interested in new builds due to the higher price they tend to command.
The place I ultimately snagged was the final one on my short list that did not have active offer(s) already on it. A 3 Bedroom, 2 bathroom house with internal access 3 car garage in a new subdivision.
After having my offer accepted, there was signs of seller’s remorse kicking in due to alleged “big interest in the property with buyers willing to pay more” and there was pressure on to get the LIM report from the council by the end of the unconditional date.
Despite the above, to be honest, I still firmly feel I paid a “New house premium” for the place over say an existing house. The real (extruded) value of the property when compared against a market snapshot at October 2020 I believe is around the 535,000 – 540,000 mark.
That said, the market appears to be catching up quickly in the recent month to narrow the perceived gap / premium.
One Window has already been damaged by someone attempting to break in. While apparently nothing was taken, it does mean Extra $$$$ to get that buggered window fixed. While hiccups like these were anticipated (what goes smoothly these days?), it is never the less still a little disappointing.
Make sure the place includes a basic burglar alarm, if not, factor that in when making an offer. A basic 2 PIR alarm system installed is around the $1000 mark with extra PIR sensors about a $100 each. Will look at what can be reasonably done to further harden the place security wise.
I am willing to buy again, but I think I will focus far more strictly to my original scope and aim for a place that is in an older, more established part of Rolleston which is also closer to the town centre but built using the new code post Christchurch Earthquake.
Earnslaw Burn track to the water falls and a look at the Lupins around Glenorchy, click picture below to view the gallery. As pretty as the Lupins are during bloom, they’re are classed as an invasive weed.
For those who don’t yet know, I ended up buying a house in Rolleston. Essentially the RBNZ’s so called “money printing” finally got to me. I feel I had to act to stop any further erosion of my savings base.
The financial system seems to have evolved to rewarding property investments and speculating as opposed to encouraging economically productive activities such as hard work, toil and enterprise. The money simply isn’t getting to the small and medium business which I feel matter most to the economy.
There still remains several unanswered questions as to why LVR’s were removed on Investment property in the first place which I still assert was a rather ill thought out move. People seem to have turned to defending the RBNZ as simply being a bystander in all of this but I personally still hold them jointly culpable (along with the Government) for Housing affordability issues.