- #1636215drlivingstone August 11, 2017 at 10:59 pm
Aha But The Opportunities Party launched today and The Greens are expected to recapture some lost ground as things are hotting up.So what about the nightmare of negative equity?Some people who bought homes recently now own homes worth less than they paid for them Has the crash started?
Peoples Republic Of Christchurch#1636221kaiapoiken August 12, 2017 at 9:56 am
DrL, you ask “So what about the nightmare of negative equity? I ask, Is it a nightmare having a roof over your head that you have worked to get? After the comments about the Homeless would this not seem to be preferable regardless of the value of your home at a particular point in time? Unless, of course, you only purchased your home to make money. House values will go up and down as you should be aware of. The only people who would be having nightmares are the speculators who have purchased to make a quick buck or intend to rent. I can’t believe you are concerned about their problems Doc, that would be out of character.#1636222drlivingstone August 12, 2017 at 10:13 am
Hi Kaiapoiken, in Stuff which prompted my questions.I was reading Rob Stocks article which shows prices dropping according to Barfoot and Thompson July sales report. It said recent buyers in some parts of Auckland will have a sinking feeling.It isn,t because we are building enough homes for the expanding Auckland……….
kaiapoiken As an aside Do you know The Mandeville Sports Club near you? The Kaiapoi Golf Club Country,caterers have recently moved there and we wondered if they were opening a restaurant/cafe like they ran @golf Club? Cheers
Peoples Republic Of Christchurch#1636248kaiapoiken August 12, 2017 at 2:28 pm
1. I, too, read that article and that is what prompted me to question your interpretation. Naturally a Real Estate firm would be concerned as it will affect their commission. The majority of people I have helped finance into homes in the past are not in the least concerned about this so-called “negative equity” and most certainly did not consider it a “nightmare”. They were just thankful to have a home. I am not surprised that some Aucklanders will have a sinking feeling if they also intend to use their homes as equity for other purchases or intend to rent them out. The article is not very specific in this area and, therfore, has little merit.
2. I was one of a number of local residents who helped with the establishment and fund-raising for the Mandeville Sports Centre. Now that it is established and successful I have moved on to other pursuits which this old body can cope with. Whether it will have a restaurant/cafe I can’t really say. My gut feeling is that they may not as they will be fairly busy with the needs of the local community and affiliated clubs.#1636316drlivingstone August 12, 2017 at 11:01 pm
kaiapoiken. Interesting re Mandeville Sports Club.Thanks. 😀 I have emailed Country Caterers Mike Cunningham as our social group has enjoyed their hospitality for a few years now about nine times a years plus their lovely affordable lunches too. They are spit roast specialists too.We would like to continue to appreciate them. Several of our members come from North Canterbury and we are looking at other places too. We have had to forego The Rangiora RSA as they are upgrading but someone has recommended Five Stags. Cheers 😀
Peoples Republic Of Christchurch#1636351don021MemberMember since: May 15, 2012
Replies: 1533don021 August 13, 2017 at 12:40 pm
So used house dealers are discovering what used car dealers have known for ages, second hand products usually devalue. Until they become antiques.#1636385kaiapoiken August 13, 2017 at 5:50 pm
Anyway DrL, getting back on the subject, I am still interested in how you equate the “nightmare of negative equity” with some of your previous posts on homelessness and the difficulty of people getting into homes. I still maintain that people who are able to get into homes don’t give a damn about your “negative equity” they are just grateful that they have a roof over their heads that they can call their own. Unless of course you are sympathising with the speculators & those looking at buying properties to rent out, which, with your track record, would seem to be an anomaly.#1636388drlivingstone August 13, 2017 at 6:20 pm
kaiapoiken, And respecting your experience in this field , it was not my negative equity but a piece in a paper.I don,t have to equate anything with anything in these Grownups threads for friendly discussion. Lots of posters range across several topics.Cheers 😀
Peoples Republic Of Christchurch#1636413kaiapoiken August 13, 2017 at 9:26 pm
Unfortunately DrL some posters range across several topics purely to stir people up. They have no real idea about the subjects they introduce and in a lot of cases nor do they care as long as there name is to the fore. I am merely trying to debate an issue with you, and in a friendly way, but apparently it appears OK to have different values for different issues. Which is what I am getting at. If you have no wish to debate an issue why mention it in the first place?
And Cheers to you too.#1636470jensMemberMember since: May 3, 2006
Replies: 7224jens August 14, 2017 at 11:30 am
Dr. Livingstone – from a “Third Way” point of view “Negative equity” in a property is a real problem or loss only for those facing an enforced sale, or who took the risk of buying property for a quick re-sale profit, as kaiapoiken and dono21 seem to agree on.
Apart from that, the austerity of continuing to pay it off and raising your own equity in the property regardless of sinking market valuations, makes you in the long term still better off than say, just paying rent – unless the rent is so much cheaper than a long term mortgage repayment rate that you can save more than what you might lose in (normally quite limited) property value reductions.
Some sort of at least a stable minimal capital ownership building savings rate built into everyone’s life-style from birth is basically at least equally important – and practically part of – our universally essential (normal, “compulsory”) education for the successful survival of a community, and why not also in the imaginary “Peoples Republic of Christchurch”, Dr. Livingstone ?
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