THE WINDS OF CHANGE
21 Jun 2019
If the latest property reports are to go by then the bottom of the property market is near or already here and property values will rise by at least 18.3% per cent over the next 4 years (NZ Treasury) - a rise of about $125,000 on the average residential house values. In Auckland that figure is even higher, adding about $190,000 to the average house value of $1.03 million.
I have to agree with the thinking that the market will pick up again before the end of the year, and if buyers are smart, they’ll be aware that the market is firming up, and start acting NOW.
Just taking a drive through the Auckland suburbs, you can see renewed activity with more SOLD signs up on home verges and in Real Estate office windows. Enquiry into new homes is noticeably up month-on-month.
With renewed confidence in the market, low interest rates and the capital gains tax off the table, the relatively subdued market that we’ve come to see these past 18 months will definitely contribute to a firming of property prices going forward.
What does this mean for first-time home buyers?
With the LVR still remaining fairly tight and bank’s lending restrictions not being entirely relaxed, looking to buy a brand-new home looks to be a great option with deposits of only 10% being required, instead of the usual 20% on an existing home.
My biggest piece of advice for first time buyers – get your finance sorted and pre-approved before looking.
And don’t always go with the first finance option offered to you. Get a second opinion and ideally make use of great mortgage broker, who would be able to shop around for you and your personal needs. If you’re interested we know a few excellent ones we can recommend. Most importantly, don’t get too swayed by the low interest rates on a short-term basis. As a first-time home buyer, look for the best rate below 4% over a longer period that will provide you the security you need over the next few years and minimise the financial risk.
And when you’re ready, give us a call. We have the largest selection of new homes throughout Auckland to suit a variety of budgets. Our team understands the new property market more than any other agency and will certainly find a new home especially for you.