How many times have you discussed the Auckland property market over recent years? If you're anything like us, the number is probably too high to remember and it's caused more than one heated conversation around the dinner table.
However, it's certainly a topic that continues to give. We're only a few months in 2018 and the Auckland property market has already changed face and is starting to head in a new direction. To learn more about this shift, we spoke to Money Empire Manager Kayne Wahlstrom.
A buyer's market?
In comparison to the last 12-18 months, Kayne explained that we're seeing property stock start to slow down. In fact, real estate agents are informing Money Empire that many properties that would have been snapped up instantly over recent times are now not selling at all.
"The property market has definitely switched to a buyer's market for middle-of-the-road properties. High-end properties are still selling well, but for first-home owners with a reasonable budget, investment properties are now very possible," Kayne said.
"Buyers now have much more negotiation power and we're noticing many first-home buyers returning to the market as investors – there are many bargains around."
Why are buyers now in control?
The Auckland property market is influenced by many factors, but Kayne noted several major elements worth keeping an eye on.
"The finance side has really put a slowdown on the market."
"Obviously, the new government coming into fruition is one. The Coalition have introduced a number of policies, including banning overseas buyers and has released pressure in the market," Kayne said.
Economic uncertainty around new governments can also mean banks and lenders are more careful around who they give money to – meaning there are fewer people to compete with at open homes and auctions.
"The finance side has really put a slowdown on the market," Kayne continued.
Choosing the right time to invest in property
Despite the Auckland property market now in favour of buyers, selecting the right time to invest in as well as the property itself is key. This is where the expert team at Money Empire can support your property goals.
As your eyes and ears in the market, we can advise you on when the best time to both buy and sell property is, how future financial decisions, such as the Official Cash Rate could affect your returns and how possible new government taxes might impact your finances.
Money Empire is well-educated in the Auckland property market and can ensure your decision is the right one for you and your family. To find out how to start your property portfolio, get in touch today.