Donald Trump is sworn in as President of the United States this week and the world as we know it will be a different place. Borrowing interest rates are rising and NZ banks are having to borrow more overseas to fund existing lending commitments according to this news item.
Mortgage interest rates are rising but predicted to stay low in 2017. Some investors may still be caught out by a rise in their borrowing costs and need to sell underperforming rentals putting further strain on the supply of rental properties in some areas around the country. In Auckland, business has been good for this Auckland property management company in 2016 and they’re optimistic it will continue in 2017.
“It (2016) has a been a record year for (Pedersens Property Management). 2017 is going to bring more challenges with the banks rationing credit, interest rates potentially rising and an election all in the wind. On the flip-side we (NZ) still have record migration, a decreasing unemployment rate, interest rates that actually will still be low historically and an increasing shortage of houses so what we are heading into is not the GFC by any means.
For those of you who have struggled to buy there are actually likely to be more opportunities in many ways.”
From Pedersen Property Management December 2016 Newsletter
If the property management sector is performing well it’s usually a sign of investor confidence in the market. Property investors on PropertyTalk say they did well in 2016 and they’re in a good position to weather anything a Trump presidency may throw at them in 2017.
This blog article was written for PropertyBlogs by Mobilize Mail.