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.
Is there ample supply of apartments to meet demand by first home buyers? Consents for apartments developments in Auckland have risen back to historical averages over the past couple of years says Statistics NZ but they’re falling short of the supply level required to meet current and ongoing demand.
The move to get first home buyers interested in the apartment market will in the short term see Apartment values rise. First home buyers will need to compete in the open market with investors and foreign buyers and they will be more emotionally driven to pay more to secure the Apartment they want.
Rising Apartment values will probably wipe out any initial relief the lower deposit requirement offers to homebuyers quick smart, so once again just like the recent initiatives implemented by the RBNZ and the Government to curb demand this too it maybe a good move but only a short term fix.
First home buyers would therefore be encouraged to act as quickly as they can. Kris Pedersen Mortgages suggest first home buyers and indeed all home buyers need to be well prepared prior to identifying the property they want to purchase. The starting point for home buyers is talking to an experienced mortgage broker, who can support them through the entire property purchasing process including securing a home loan pre-approval.
The early bird gets the worm and home buyers who have prepared well in advance are more likely to secure the property they desire when they compete with the myriad of other buyers.
This blog article was written for PropertyBlogs by Mobilize Mail.