Otahuhu Market Report 2022
“Of the other half that are still showing an increase in the rate of growth, five have increased by less than 1 percent. Although the market has slowed down, it hasn’t stopped completely. “In recent times, we have never had so much external intervention into a housing market, and yet, in the middle of a global pandemic the market grew by a record 28.5 percent nationally.” New buyers still have ways to get on the property ladder in New Zealand in 2022.
If the time is right for your circumstances, now is a very good time to be selling a property and comparing real estate agentswho have been vetted. The Government hopes a Commerce Commission investigation into building supplies will bring house prices down. Submitters aren’t sure if the market study is asking the right questions.
Read more about you could look here here. Anybody who fixed for a year in about April/May 2021 could potentially see their mortgage rate double when they review mid-this year, which can have a significant impact on household budgets,” says Mr Davidson “Owner-occupiers now face a much smaller availability of low-deposit loans, while the CCCFA regulations have caused far more disruption than expected. All borrowers are having to face up to the reality of significant mortgage rate increases too, with a further rate hike expected to be announced in February’s review. As of writing this article on 13 October 2021, the OCR has risen from 0.25% to 0.50%. We can assume that the OCR will continue rising due to the pressure from inflation, offshore markets, or any other volatility. We are familiar with our market and we take pride in the results we achieve for you.
Over the last 5 years the average New Zealand property increased in value from $600,000 to $922,000 – an astonishing $322,000 increase, according to Property Value and CoreLogic data. Alternativly, if you already own a property, you can multiply the purchase cost of the property you are considering by 0.4 or 0.2. New Zealand is experiencing a severe housing shortage. The government wants to encourage developers and builders to build new properties.
These investors will gravitate to townhouses as they are the most desirable property for developers to build. So this might be an acceptable tradeoff for you if your strategy is to Buy and Hold over the long term. If you are an investor who is focused on renovating and adding value, then standalone homes are often the best choice. You might also consider logging onto Trade Me or Realestate.co.nz. It can be difficult to determine what makes a good investment property, which properties will be high-growth and which properties will yield higher returns.
Most renovation projects require the investor to make many of the improvements themselves. This is because some renovation projects would not be profitable without the investor’s labor. It can be hard to know exactly what needs to be done to fix an electrical error before you purchase the property. But, if you are executing a ‘Buy and Flip’,going over budget has the potential to make the entire investment unprofitable and in some instances not worth the time you’ve invested.
However, if you bought an existing property you would require a $200,000 deposit. The reason for this is that your rent will have increased, but your mortgage costs won’t have increased by the same amount. Existing properties are already built so you can renovate them and rent them out. No matter what house you live in, it is still an existing property if you decide to sell it today.