Any Rennlisters from New Zealand?
07-10-2015, 11:55 AM
Track Day
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But be under no elusion...to replicate a good NZ lifestyle in UK requires a minimum household income of £500K+ ($NZ1m pa). Real Estate where I'm at is £1000+/sq ft, you'll need a nanny if you're both working & have kids (£50k pa), nursery (£12k+ per child pa), schools (£20k - 30k per child pa) you'll want a pad in the country even if you're lucky enough to have a small garden in your central London flat (£500K +) & everytime you want to go to a nice beach, go skiing or go boating/watersports - you'll need to go abroad to do it.
You'll end up living for your holidays rather than having adventure-filled weekends.
Bottom line - every place has its compromises - and different places will suit people at different stages in their lives. It's a question of prioritities & choosing which compromises you're most prepared to make.
Tim
My wife and I own a 3 bedroom villa in Ponsonby, Central Auckland and are in a pickle trying to figure out if we sell our place in Auckland to buy here in London. It's pretty heartbreaking when £800,000 gets you a 2 Bedroom maisonette in our area, with no garage or off street parking and only a very small backyard.
We're wondering if we sell Auckland before the property market crashes there (if it ever does). But then with the NZD falling against the Pound we're worried about trying to move that money here from the potential Auckland house sale.
07-10-2015, 12:39 PM
Drifting
Dave too bad you're out of town? http://www.trademe.co.nz/a.aspx?id=915167591
07-10-2015, 04:21 PM
Rennlist Member
Twenty years ago... I thanked the NZ Govt for the four degrees and eigth & half years university education they subsidised & look my leave of the shaky isles. A bit of time in the NZ legal profession was all the work experience I needed to know that I didn't fit into a "small pond environment". When asked about NZ by others I always reply it's a beautiful place & a superb place to grow-up & a superb place in which to retire... bit it's a difficult place in which to build financial independence. If you're already financially established - then it's basically a beautifull playground, especially if you're a sporty or outdoorsy type. But be under no elusion...to replicate a good NZ lifestyle in UK requires a minimum household income of £500K+ ($NZ1m pa). Real Estate where I'm at is £1000+/sq ft, you'll need a nanny if you're both working & have kids (£50k pa), nursery (£12k+ per child pa), schools (£20k - 30k per child pa) you'll want a pad in the country even if you're lucky enough to have a small garden in your central London flat (£500K +) & everytime you want to go to a nice beach, go skiing or go boating/watersports - you'll need to go abroad to do it. You'll end up living for your holidays rather than having adventure-filled weekends. Bottom line - every place has its compromises - and different places will suit people at different stages in their lives. It's a question of prioritities & choosing which compromises you're most prepared to make. Tim
As for Macca's comment - everywhere we drive in NZ, someone owns the property we're driving past. Some are quietly increasing their land holdings to pass on to the next generation, probably debt free. That is the landed class. It fills Air NZ premium economy or Business Class in NZ Winter trips to Europe, when it's not at the Coromandel beach house. It golfs, fishes, follows the All Blacks on tours, drinks and eats well. The class society your parents escaped is building a slightly different branch in NZ but it well and truly here. It's relatively well hidden because it doesn't flash it's prosperity, but it has its political influence.
07-10-2015, 04:29 PM
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Michael, you can but dream of that happening. Some day a 911 will be sitting in your garage. Just wait until Paul coughs up a well sorted one he can no longer drive because his old BMX injuries gave him dodgy knees.
07-10-2015, 07:52 PM
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Concerning news.... At 32 I fear the scenario of an ageing population thats done the heavy lifting the last 25 years, and rightfully entitled to superannuation and healthcare I'm not sure we can afford/sustain.
Im fairly heavily into industrial/commercial property, become dissatisfied with it, considered selling but frankly don't see a better alternative.
Most developments no longer stack up, you've got guys out there doing stuff for 7% yield....
Have spent the past 18 months on a residential one, was good getting the capital gain, but what now, the rising tide has floated all boats, yet sitting with money on TD is not an option either...
Im fairly heavily into industrial/commercial property, become dissatisfied with it, considered selling but frankly don't see a better alternative.
Most developments no longer stack up, you've got guys out there doing stuff for 7% yield....
Have spent the past 18 months on a residential one, was good getting the capital gain, but what now, the rising tide has floated all boats, yet sitting with money on TD is not an option either...
I'd kill for 7% yeild (in Alk)
Are you a full time developer/investor or work in the industry and play on the side?
07-10-2015, 07:53 PM
Rennlist Member
Dave too bad you're out of town? http://www.trademe.co.nz/a.aspx?id=915167591
07-10-2015, 08:02 PM
Any Rennlisters from New Zealand?
Have been doing it full time for myself, just started my own home so taking a year off. Considering selling that too though (once complete), if the margin was right.
Not sure where I would go though, just don't require brand new.
Not sure where I would go though, just don't require brand new.
07-10-2015, 08:06 PM
Drifting
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Any Rennlisters from New Zealand?
Just spotted a nice article on the Targa Tour in July Autocar mag in a cafe. Rough photos of it incl Walter, Chris, myself, Macca and Patsy
07-10-2015, 08:19 PM
Not wanting to turn this into a property forum (thankfully never been near one of those) but the problem is with industrial/warehousing, capital growth is tied to rental growth, warehouse rates are topped out $115ps for mid size floor plates (2000sqm plus), we were pushing this in 2008 and haven't had any growth since, there's small growth in the office contingent but when the split is 80/20 it's minimal. The only option is hunting a change of use (converting to retail), most industrial obviously doesn't have the location for this.
So really the only capital growth is from a decline in yields.
When I say guys are doing stuff at 7%, I mean sourcing land, holding costs, developing then owning at the conclusion.
If this stuff is going to market, well it's all sub 7%.
We sold 12 houses in Glenfield in 2004 for 300k, those same 90sqm box's with carports are probably now 750k. Industrial has enjoyed a better yield but not the same Capital Gains.
anyway rant over, excited for this track day next weekend.
So really the only capital growth is from a decline in yields.
When I say guys are doing stuff at 7%, I mean sourcing land, holding costs, developing then owning at the conclusion.
If this stuff is going to market, well it's all sub 7%.
We sold 12 houses in Glenfield in 2004 for 300k, those same 90sqm box's with carports are probably now 750k. Industrial has enjoyed a better yield but not the same Capital Gains.
anyway rant over, excited for this track day next weekend.
07-10-2015, 08:29 PM
Rennlist Member
[QUOTE=John McM;12422190]
Very true JMc - this is why John Key is so popular and Labour did nothing about house prices doubling in the 00's.
I quietly laugh at Labour and the Greens banging on about first home buyers not affording houses as the property market is going nuts. What is this less than 5% of the voting public?
Do the 800,000 home owners in Alk honesty give a toss? - Hell no......
This is the best advertising National can get, Labour and Greens seem to forget the 800,000 Auckland home owners are Joe average on an average household income of circa $75K, and are now becoming millionaires, or in some cases multi-millionaires out of just owning a home.
They f**ken love it, they sleep well at night and feel rich (now being paper millionaires!!), they think to themselves I will sell up my $2M ****ty house in Alk, buy a nice new little B&T house in Tga, Napier or any other sunny hick town that takes their fancy, and live on $500K - 1.5M (plus their kiwi saver - that might be worth $50K after a 20yrs of saving). Joe average on $75K have no meaningful savings, knowing their house is making them a millionaire will keep National in power for another term, they just need to keep the market going.........
Not saying this is right or wrong, it's just the way I see it.............
Very true JMc - this is why John Key is so popular and Labour did nothing about house prices doubling in the 00's.
I quietly laugh at Labour and the Greens banging on about first home buyers not affording houses as the property market is going nuts. What is this less than 5% of the voting public?
Do the 800,000 home owners in Alk honesty give a toss? - Hell no......
This is the best advertising National can get, Labour and Greens seem to forget the 800,000 Auckland home owners are Joe average on an average household income of circa $75K, and are now becoming millionaires, or in some cases multi-millionaires out of just owning a home.
They f**ken love it, they sleep well at night and feel rich (now being paper millionaires!!), they think to themselves I will sell up my $2M ****ty house in Alk, buy a nice new little B&T house in Tga, Napier or any other sunny hick town that takes their fancy, and live on $500K - 1.5M (plus their kiwi saver - that might be worth $50K after a 20yrs of saving). Joe average on $75K have no meaningful savings, knowing their house is making them a millionaire will keep National in power for another term, they just need to keep the market going.........
Not saying this is right or wrong, it's just the way I see it.............
07-10-2015, 08:46 PM
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Sounds like we are in the same line of business, will have to have a chat with you over a beer some time..........
07-10-2015, 09:04 PM
Rennlist Member
Dairy farming appears to be no different. Put a 35% deposit with an expectation that you can meet the interest on the 65% loan. Pay back some principal in exceptional years then ask for it back in bad years. Wait 25 years and sell for a tax free capital gain in the millions. You may have been on the bones of your *** for the working years but you'll have a great retirement. Same game as Auckland housing except the deposit is a lot bigger.