Landlords with rental property in Auckland have shown their restraint over the past couple years according to Trade Me’s Rent Price Index. This is big news but don’t expect it to be broadcasted in mainstream media any time soon. Bad news not only travels fast, it also gets more reads, clicks and comments so why pay a Journalist to write a feel good story for our Landlords? Therefore you’re probably hearing this news from us first! Most landlords are not greedy and they’re not hiking up rents.
Tag Archives | property market
The LVR restrictions have stopped many property investors in their tracks. However some investors have been using a strategy called The Property Staircase and getting amazing results. Property investment education has been on the rise since October 2016 and with demand comes supply. New property experts have popped onto the education scene offering seminar and mentoring services.
Predicting what the property market will do in the future has been the obsession of many property experts, commentators and investors for years. Right now their forecasts are so diverse we’re left with more questions than answers and this is causing more uncertainty especially among home buyers and property investors.
Property Investors like to be forewarned so they can be forearmed when the property market moves into the ‘slump phase of the property cycle. The property cycle has a few phases – three most notable for change are: Boom, Slump, Recovery.
Property asking prices continue to drop in Taranaki. The downturn of their primary industries (oil, gas and diary) has made home buyers wary. The rest of the country has enjoyed months of capital gains except for Taranaki which has continued on a steady decline since August 2015 according to Trade Me Sales Price Index.
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.
Canterbury property values have eased back but there’s still confidence in the local market. The Trade Me Price Index suggests the average sale price for Apartments over the last three months rose 21 percent. The Price Index calculation ignores all sales with values under 10 percent and 90 percent.
The low end property market has experienced small increases in value growth so there’s an opportunity right now for first home buyers and banks are showing them how to prepare for a low deposit loan. Property investors are usually in the firing line for all the wrong reasons however the low property value growth is due to their higher than usual market share of low end property sales.
Lower than expected inflationary figures suggest interest rates may hold for longer than anticipated.
A rise in the OCR was expected around March 2015 however economists are suggesting it may happen now.