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.
It’s official the Taxation (Land Information and Offshore Persons Information) Bill has been introduced into Parliament. The new law will see Land Information and Inland Revenue share the data collected on offshore residents. It may prove very useful in determining to what degree NZ real estate is used to launder money acquired from criminal activity.
New Zealand needs to improve the rights and conditions for tenants and landlords. Renting for decades may become the norm for people living in Auckland and for anyone with goals that don’t include owning their own home.
Major Banks may reduce the deposit required for buying an Apartment. Currently a twenty percent deposit is required and this could drop back to fifteen percent. The focus of the move is on home ownership not investment and it should attract more first home buyers into the property market.
In an ideal world New Zealand’s rental properties would be fit for royalty. We know New Zealand is where so many foreigners want to live and there’s no denying it’s outright beauty so why are so many of our rental properties only fit for the third world?
More New Zealanders are renting today than ever before and they will remain in rented accommodation longer than desired. Their first taste of home ownership is likely to be an investment property which they’ll rent out while they too remain as tenants in another landlord’s property.
Hamilton may be the winner from the recently announced LVR restrictions placed on Auckland property investors investing locally. Aucklanders’ investing outside of the Auckland region are now encouraged with a higher LVR threshold resulting in less deposit required to secured a home loan.
Rental income growth is moving at a much slower pace than property value growth throughout New Zealand. This is actually a relief too. Imagine rents growing at 15 percent per annum? I know ‘a dream come true’ for Landlords well until tenants fail to pay the rent or fixed tenancies becomes a thing of the past.
Competition is rife amongst New Zealand home loan lenders. The promise of yet even lower interest rates in the near future is enticing the most resolute mortgage lendee to consider breaking their existing fixed rate term.
The recent Government initiative to apply a two year rule on homes sold within two years of purchase by non owner occupiers is welcomed by property investors. Andrew King of the Property Investors Federation has represented property investors nationwide in the press and on TV recently. He confirmed what we’ve been saying on PropertyTalk for some time.
It’s no secret RBNZ is looking for suitable measures that target property investors to help cool the Auckland property market. Back in February 2015 property investors awaited news of a measure that would target investors with 5+ rental properties but the announcement did come.