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Almost three and a half months have now passed since the March 23 announcement of some radical changes in tax rules for investors in residential property. The expectation has been that investors will sell up in disgust, but there's no statistical evidence of a flood of properties hitting the market.
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.
Some people retain a negative view on the housing market on the basis of an expectation that the economy is stuck in recession. Actually, the recession ended two months ago and there is little chance of it returning then morphing into a depression.
When you have established yourself on the proverbial property ladder you will at some point come to the decision to move house. But what comes first? Is it better to buy first and then sell, or the other way round? Here are the pros and cons to each of these scenarios.
I think now is a good time to be at least looking, but take your time and make sure the numbers stack up. If you buy cash flow neutral in the right areas, irrespective of what happens with short-term house prices it will be an excellent long-term investment.
When prices are going up, everyone seems happy to pay ever increasing prices and nobody questions whether or not it is a good time to buy. Conversely, when prices are falling everyone sits on the fence waiting for the market to pick up.
In this post I’ll cover off what I’ve learned about buying in a soft market, and how Squirrel can help beyond simply arrange the mortgage.
Housing markets typically move in cycles – often referenced as the ‘property clock.’ Anyone with an interest in property sits around guessing what time it is. If you observed the clock over the past thirty years, it has largely worked out, but right now reading the property clock is getting harder.