Expect to see another increase in the property sales price data for Wellington when the Trade Me Sales Price Index is released for March 2016. Homes in the region have sold within days of being on the market for sale; and they’re being purchased for tens of thousands of dollars over the Government valuation.
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The RBNZ wants to see the sales data for February and March before assessing the effectiveness of their new measures that included the 70% LVR restriction for Auckland investment properties. New lending was at an all time high at $1.679 Billion for the week ending 4 March and the average size of loan set a new record. February property sales were up on the previous three months.
Continuing low interest rates are probably contributing to the home buyer frenzy in the regions. Auckland investors keen to secure more investment properties are competing for rentals in surrounding areas including: Bay of Plenty, Waikato and Northland. However there are signs in the Wellington area that it’s on their radar as well.
Auckland apartment investor and mentor Grant Hoey says 2015 was hugely popular for property trading in Auckland apartments. Property trading is the term more frequently used to describe the process of buying, doing up and selling property for a profit.
In the Tortoise and the Hare race – the tortoise is ridiculed by the hare for being slow. Wellington over the years has experienced much the same derision mainly from the locals of Auckland including our Prime Minister who infamously once said Wellington was dying. Well just like in the tortoise and hare race Wellington is rebounding.
Investors are making their own luck in the regions and in the least popular suburbs of Auckland. Property values have sky-rocketed pretty much everywhere in Auckland however there are investors still buying properties under market value. They are just not in the popular suburbs and the properties need a bit of work.
Auckland is New Zealand’s economic hub and with our economy set to continue to grow over the next couple of years demand for housing in Auckland will remain high. Property values in New Zealand have increased by more than 25 percent in 3 years and NZHerald also reports Auckland’s the median house has risen by 46.5% however there are investors buying Auckland residential property for less than market value.
Dave Windler of Mortgage Supply is a regular guest speaker at PropertyTutors’ Property Masters events. Dave’s knowledge on financing property trades and challenging property investment deals is well known amongst property investor circles.
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.
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.
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?