Magnificent 7 reasons to take advantage of 2019
So you’ve been looking at realestate.co.nz, TradeMe, the Property Press or maybe you just stop and spend a bit longer analysing the properties displayed in real estate agent windows?
Whatever your property pastime you are not alone and it has become more exciting as property prices have softened and the option to buy has become more in reach, for more people.
A quick review of 2018 shows a continued large supply of properties along with plateauing or decreasing prices, in Canterbury. These trends are likely to continue into next year making it a good year to consider buying, or renovating as interest rates are also low.
Here are 7 magnificent reasons why 2019 is the year you've been waiting for:
1. Interest rates, interest rates, interest rates
The old saying - location, location, location - has supposedly been the single most important rule when buying a house, but currently interest rates are the focus, with the benchmark RBNZ official cash rate (OCR) being steady at 1.75% since November 2016.
The three-way combination of high supply of properties, lower prices and a steady OCR is spurring banks to offer increasingly competitive lower interest rates to borrowers, and this is making 2019 look pretty for house buying.
2. More supply equals better offers
The building boom has meant the potential for properties to be sold below their true market value. Property developers need to move their inventory to maintain their cash flow and lower sale prices are the result. In the current property cycle, the supply greatly outweighs the current demand in the market.
This is good news for anyone who’s waited for a prime time to buy, whether as a first home buyer, your second or third, or as an investor. It’s been a long wait, but good things come to those who are patient.
3. There are now more home options
The increasing amount of houses being built following the earthquakes has led to an assortment of different types of new homes on the market, from standalone, to townhouses and apartments, that all complement the older homes on the market. There is now choice to suit your budget, preference or dream about the type of home in which you want to live.
4. Reducing the impact of overseas investment
Recent new restrictions, in the form of the Overseas Investment Amendment Bill, has put a curb on foreign purchases of existing New Zealand property, with the Government “adamant that it will help Kiwis get back on the property ladder.”
In recent years, foreign investors have had the privilege of purchasing land and properties, so this new law is more good news for Kiwis wanting to buy a home.
5. Upsizing your home
Lower interest rates also means an opportunity to make changes to your home that are not going to break the bank, as long as you have sufficient equity to borrow against.
The reasons for upsizing are many but the main ones are a growing family, teenagers needing more space, a new job or promotion with a higher income, or other family members wanting to move in. Weighing it up, it could also be cheaper than moving.
6. Refresh or reno - give your house a little love
Low interest rates also provide the opportunity to make the changes you want.
Modernising your kitchen or bathrooms are typically the ones that add the most value to your home and let’s face it people spend a lot of time in the kitchen so making it look good makes home feel more like home.
Equally, if you have more extravagant plans like a full renovation, now is also a good time, but in order to achieve this without putting yourself on the financial back foot it will be important to talk to a mortgage advisor to discuss the potential from a finance point of view.
7. More options for more people
Lower prices, better interest rates and more choice, simply means more people having the option to buy a house, from a wider range of income brackets. So if you’ve felt shut out of the housing market for a while home ownership has become more of a possibility for a wider group - the cycle has changed.
Make the most of 2019
So make the most of 2019 - the stars are aligning and there’s more opportunity to get a foot on the ladder.
Buying a new house or renovating your existing home is an exciting decision. If you’re ready to take it on and make this a New Year resolution, why don’t you give us a call at Taurus Home Loans so we can talk you through the best way to secure a home of your dreams with the least amount of hassle, or work out finance to update or refresh your existing home.
Posted 11 Jan 2019