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Nationwide average house sale prices rose by 2% in August. This followed a 2.4% rise in July, 1% gain in June, 0.8% rise in May and just a 0.5% rise in April.
Now that we are experiencing lockdown again, can we expect the same things to happen in the residential real estate market and economy as last time? No. There are some key differences between this situation and that of March 2020.
We're starting to see commentators and even the Reserve Bank talk about falling house prices towards the end of next year. We shouldn't be surprised that none of these predictions are from real estate companies who bring the figurative cocaine to the house party. Here's my perspective on house prices from the frontline.
Whenever things like the global pandemic, the 2008-09 Global Financial Crisis, or tax policy alterations happen such as those announced on March 23, most of us can take a view on what the likely impact will be. Sometimes these views can be horribly wrong.
To get a deposit up to 20% in today’s housing market takes years. It’s a common story. You can afford to take on a mortgage but the bank won’t let you. Kāinga Ora isn’t an option for higher earners due to income caps and house price caps. It just isn’t fair, right? We saw a gap, so we're filling it.
On March 23 the government surprised everyone with some draconian changes in the ability of property investors to deduct interest expenses when calculating their tax obligations. Will we really see big changes which could stop house prices rising for an extended period as the government would like? No.
Newsroom’s Alexia Russell sat down with Chief Squirrel JB to chat about what the Government's recent announcement means for first home buyers. Does it remove the stumbling blocks, or is it still hard as ever for young Kiwis to get onto the property ladder? Are there going to be any unintentional consequences?
We all know that the residential real estate markets all around New Zealand have been rampant since just after the middle of last year. We've been here before and none of the 'remedies' seem to have prevented prices from rising at pace.
The last time 40% deposits for investors were introduced, Auckland house prices had been soaring for four years. This time, we're only a year into the current frenzied house price cycle, and interest rates are much lower than they were. So how much impact will reintroducing the rule have?
Most of us store a large part of our wealth in property. It could be in our owner-occupied home, a holiday house or an investment portfolio. And a large number of property owners are starting to head towards retirement.