New Zealand’s residential property market is going absolutely bonkers. More properties were sold in Auckland during September than during the same month in the last 4 years. Plus national median property prices are up by almost 15 per cent, according to the REINZ.
Considering the crazy year we’ve had and the way the property market is bubbling over, you may be wondering: is now a good time to buy property in New Zealand? Well, it depends.
Over the last 6 months, we’ve seen buyers rush into purchases and make mistakes. With all the urgency and competition that comes with a hot property market, it’s easy to lose your head.
Don’t get sucked in. You should only buy right now if it’s the right choice for you and if you’re ready financially and personally. Isa Nacewa, registered adviser at Money Empire, says the pressure is huge, but you should always sort yourself out first:
“You’ll always get pressure from real estate agents and other parties involved but just make sure you control your situation and finances and put your best foot forward. You can’t control the market or what other people are doing – all you can control is your own situation.”
Buying a property and securing a mortgage is a big responsibility. Get the right advice and think it through before you make any decisions to make sure you’re making the right ones.
If you’re 100% certain that you’re ready and you’ve got a mortgage broker and a lawyer lined up to help you, now could be a great time to buy property in New Zealand. Here’s why:
The Reserve Bank has told banks to prepare for the possibility that they may drop the official Official Cash rate to 0% in the near future. That means already low interest rates could go even lower, reducing the cost of owning a home.
Despite a global pandemic and recession, house prices in New Zealand are still going up. In fact, median property prices increased in every region in NZ during the year ending September 2020, according to the REINZ.
More than 50,000 Kiwis have returned home in 2020 and according to a recent survey by KEA, a further 500,000 could be on their way in the next few years. This could create more demand and bolster the market.
For these reasons and more, now could be a great time to buy property in NZ – but only if you’re ready! Before property hunting, always get financial advice from an impartial expert that you can trust and get home loan pre-approval so that you’re ready to go when you find the right place.
Get in touch with the team here at Money Empire to get started!