Property Expert Joe Wilkes and I discuss the issues arising from falling home prices, and Joe walks through the latest Auckland data. As prices continue to fall, “a bargain” simply does not exist!
The Mythology Of Capital Gains
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– In 2019, 2020 and 2021 A LOT OF australian mortgages will reset from “Interest Only” (IO) to “Principal & Interest” (P&I). I think that this is the main reason why australian households are forced to sell their house & especially their investment property/properties. And some 50% of those sales seem to have been done at a loss.
– Banks in New Zealand (NZ) also have issued those “Interest Only” mortgages in recent years. If I remember correctly (source: Mr. Wilkes ???) some 25% of those mortgages in NZ are/were IO mortgages.
Question:
– Does Mr. Wilkes have data on how much of those IO mortgages in NZ are going through such a reset (from IO to P&I) this year and in the next say 2 to 3 years ? Perhaps he is able to reply to this question in the next video ?
– https://www.interest.co.nz/property/99445/latest-realestateconz-figures-show-asking-prices-and-new-listings-are-easing-while
– If you want to know where those Auckland neighbourhoods are that were mentioned by Mr. Joe Wilkes then look at GOOGLE maps.
– Banks in NZ are lending (some) 20% less ? O.M.G. that means that in NZ the “Credit Impulse” is receding as well (like in Australia).
– Question: In the previous video with mr. Joe Wilkes (when he looked around in Pokeno) he mentioned that the NZ (/ Auckland ??) property market(s) peaked in 2015. Based on what data/metric(s) did he base that statement ? Because I thought the NZ property market(s) peaked in say mid 2018.