Buy yourself a nest egg for Christmas. There’s never a better time to get into the property market.
The Auckland property valuations are causing a real stir in the market place. These valuations are based on a combination of house size, land area and a 3 second drive past. Yes, it’s good news for most North Shore ratepayers, but for those wishing to sell our advice is to get a valuation done by a registered valuer.
Most properties are now up to 10% to 15% undervalued by the new valuations.
Prices are being driven up by a shortage of properties to buy and rent. There is such a shortage of rental properties that rents are up more than 10% on last year and they are still increasing. In my experience, when rental prices go up you know property prices will increase 3 to 6 months later.
Prices are also under pressure because of the chronic shortage of new properties across New Zealand.
At Lochore’s our rental department is receiving 5 or 6 enquiries a day from returning expats and new immigrants from the UK and Europe. They want to buy, but are looking to rent in the short to medium term. There are just not enough rental properties or properties to buy to satisfy demand.
Lower priced houses are particularly sought after by the phenomenal increase in first time home buyers trying to get into the market. With interest rates at historical lows and appealing fixed term mortgage offers from the banks, it has never been a better time to enter the housing market. Given the problems in Europe, interest rates are likely to remain low for the next 2-3 years, so buying a home is truly an affordable option again.
There is a two tier market here. Though things are on the up for the lower to mid-size end of the housing market, the upper end is on the way down. Many people caught by the recession are trying to reduce debt by downsizing their houses, causing a flood of higher priced properties on the market.
So, if you are looking to buy your first property, find yourself an expensive property or purchase an investment property now is the time to buy, because in 3 to 4 months time today’s prices will be a thing of the past.
If you are looking to sell, start thinking about listing your property in December to be in a good position to take advantage of the upswing in the New Year.
It is going to be a very busy January.
All in all, things are looking up for the housing market.
Have A Very Merry Christmas
