Homebuyers are getting a look in now property values have dropped in the Auckland region however shoring up the right loan is no easy task. It’s a minefield out there for home owners who need the right loan structure to benefit from the lower property values. Negotiating the ins and outs of a property mortgage takes time …
Most full time employees are dissatisfied, and wish they were doing something else. Property Investors love investing so they aspire to invest full time and thus be doing well enough to give up their day jobs. There are a couple of strategies being applied by investors who frequent the PropertyTalk.
Property investors want to secure property profits from their deals all year round, year in year out. In the boom stage of the property cycle everyone can be a winner with unprecedented capital gains and never more so than right now as property values continue at record levels in Auckland. A property valued at $750,000 in June 2014 more than likely valued up to $900,000 in June 2015 which is a twenty percent gain in just 12 months.
Homeowners could become property investors as a result of Auckland Council’s easing of density limits in selected areas of Auckland. Glenfield on the North Shore is earmarked as an area suitable for the new density limit with homes able to occupy as little as 200 sq metres. Under this new limit a homeowner in Glenfield with say an 800 square metre section could remove their home and build four townhouses before they could build just two.
Higher loan rates for property investors is now a reality in Australia. A couple of banks (ANZ, CBA) have recently raised their home loan rates for investors. The residential property market is also hot in the UK – so it’s not just an Auckland thing. A garage sold for $2m in London recently and the median house price in Sydney is now over $1m. Foreign Buyers are investing in residential property in Sydney, London and Auckland.
Successful property investors have a few traits in common and not just with each other but also with professional sports and career professionals. While most of us look for shortcuts, arguably successful property investors want to learn and improve their systems by completing the entire process. Their obsessive attention to detail motivates them to analyse, learn, develop skills and acumen they can use time and time again so they achieve better results every time. Practice makes perfect is their motto.
Renting is a choice for many people who just don’t want the hassles of homeownership and their lifestyle doesn’t suit it. There is a rise in single households too, so owning the kiwi dream of a typical three bed standalone in suburbia is not on their radar now nor any time in the future.
There are professions that require extensive travel and with today’s global economy people are a lot more transient, moving cities, countries at very short notice.
News of high numbers of property sales to Chinese ‘surnames’ has created a hot potato in political circles and it’s all the talk with property investors on PropertyTalk.com.
Depending on your point of view, clamping down on foreign ownership is either a necessity so Kiwis get into homeownership or the start of economic woes with our largest trading partner.
All eyes are now on the rental property market and the remarkable shift from homeownership by the age of thirty, to living in rented accommodation long term.
The question now being asked by many commentators is: Does the Residential Tenancies Act 1986 (the Act) support long term renters or is it only good for the ‘flatters’?
Baby boomers particularly those currently living in Auckland may be setting their sights on Nelson and who would blame them. Nelson offers the perfect lifestyle with a mediterranean climate, idyllic nature walks, sandy beaches, culinary delights and of course it’s one the cultural arts capitals of New Zealand too.
Odds are on for a substantial drop in the OCR rate over the coming months and banks are suggesting it could get as low as 2.5% by October.
Floating rates are likely to follow suit which is good news for borrowers who haven’t fixed their loans. It’s bad news for depositors however and anyone relying on the interest income.
Back in February we got a look at a housing factory in Lower Hutt. It pre-builds homes for under $200K. The homes are built in modules so more or less can be added to create larger or small homes. Imagine securing a four bedroom home for just $195K – a couple in their twenties did so and the home moved onto their Whitby section in Wellington.