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New Zealand Property: Signs of Stability After the Downturn · That Home Loan Hub

• 0:10
  Speaker 1: Hey everyone, welcome back to that Home Loan Hub where we take the stress, the jargon and the snooze factor out of New Zealand property scene.
• 0:17
  Speaker 1: Today we're going to look at the house prices.
• 0:19
  Speaker 1: Are they on the move again?
• 0:21
  Speaker 1: Well, if you're a buyer, a seller or someone just plain curious about what this means for your mortgage and your money, stay with me.
• 0:30
  Speaker 1: I've got some real insights and few practical tips to help you make smarter property moves in this shifting market.
• 0:38
  Speaker 1: So let's start with the numbers.
• 0:41
  Speaker 1: Corelogic just dropped a June update and it's official House prices across New Zealand increased by 0.2% in June.
• 0:52
  Speaker 1: Now you might be thinking Zibuniso, that's not even worth a tweet, but here is why it matters it's part of a trend.
• 1:01
  Speaker 1: So since January, we've now seen a 0.6% rise, and that's not a fluke.
• 1:09
  Speaker 1: All right, guys, that's a signal.
• 1:11
  Speaker 1: So, after a long and painful downturn where some areas dropped up to 20%, I'm looking at you lower heart or upper heart we're starting to see the side that is on the upside, and the key word here is stability.
• 1:28
  Speaker 1: Now confidence is creeping back in.
• 1:31
  Speaker 1: Buyers are feeling a little less afraid.
• 1:34
  Speaker 1: We definitely have seen an increase in buyers over the last few months and banks are starting to ease up on their lending policies.
• 1:43
  Speaker 1: So more and more people are asking me have we hit the bottom and what is driving this mini upturn?
• 1:53
  Speaker 1: Well, let's have a look at the cocktail of factors.
• 1:57
  Speaker 1: One that I'm seeing is a significant player in all of this is the interest rate.
• 2:04
  Speaker 1: Now, with the whispers of further OCR cuts later this year, buyers are sensing that the peak may have passed and this is the good time to buy.
• 2:14
  Speaker 1: The banks are definitely sharpening up their pencils.
• 2:19
  Speaker 1: They're giving us more competitive rates, cashback offers and policy tweaks.
• 2:24
  Speaker 1: That means borrowers are feeling a little more empowered, even for investors, the recent update from ANZ has allowed us to go interest only for up to 10 years on an investment property.
• 2:37
  Speaker 1: So if you're an investor looking for some cashflow positive properties, don't really care much about paying down your debt.
• 2:43
  Speaker 1: You can actually get a mortgage for up to 10 years.
• 2:46
  Speaker 1: That's interest only.
• 2:48
  Speaker 1: But look, there's also another factor in, like listings.
• 2:51
  Speaker 1: Listings are up, but the problem is the quality of the stock.
• 2:56
  Speaker 1: The quality of the stock is still tight what we hear and so when a good property comes to the market, it's moving.
• 3:03
  Speaker 1: It's moving really fast and sometimes with multiple offers.
• 3:06
  Speaker 1: And back to the investors, their confidence is rebuilding as well, thanks to the policy changes and especially around tax deductibility change and a government that's a bit more property friendly.
• 3:19
  Speaker 1: So, while we are not in a boom territory, the floor feels firmer.
• 3:24
  Speaker 1: That alone is enough to nudge prices up and hit up the competition.
• 3:29
  Speaker 1: So, especially in popular regions, I'm hearing the properties in Auckland are selling up really, really fast, with auctions having more than 11 offers just on one property alone.
• 3:40
  Speaker 1: So the big question that I usually get daily at the moment is Zibunisa should I buy now or should I wait?
• 3:47
  Speaker 1: Here's my take.
• 3:49
  Speaker 1: If you're trying to time the absolute bottom, you need to stop.
• 3:54
  Speaker 1: That ship has probably sailed back a few years ago.
• 3:59
  Speaker 1: But if you're first on buyer and the numbers work and you're financially ready and you've got the pre-approval, go shopping.
• 4:06
  Speaker 1: Don't let small movements in the market stop you from building long-term equity.
• 4:11
  Speaker 1: And if you're an investor, it's all about strategy, right, there's still good deals out there, especially areas where yields are holding and competition is low.
• 4:20
  Speaker 1: Just the other day I've heard of one of my investors.
• 4:23
  Speaker 1: He bought an Invercargill four units on one title with the yield of 9.6%.
• 4:29
  Speaker 1: So there are still properties that you can get some really good deals, but you've got to know your numbers and you've got to have a plan.
• 4:36
  Speaker 1: And look, waiting can pay off, but in a rising market it can also cost you.
• 4:42
  Speaker 1: So even a 2% increase on the 700K property is $14,000.
• 4:48
  Speaker 1: So that's real money you'll need to find later.
• 4:53
  Speaker 1: Now we've covered the good news, but there is more to this story Coming up.
• 4:57
  Speaker 1: In our next episode we'll talk about inventory overload.
• 5:01
  Speaker 1: Yes, listings are up, but does that mean buyers have more power again, or is it just noise?
• 5:07
  Speaker 1: We'll break it down.
• 5:08
  Speaker 1: So talk about the psychology of the current market and how to position yourself, whether you're buying or refinancing.
• 5:14
  Speaker 1: And, as always, if you're feeling uncertain, overwhelmed or just want to know how the hell this all affects you or your mortgage, reach out.
• 5:22
  Speaker 1: That's what we're here for.
• 5:23
  Speaker 1: Don't forget to subscribe, share this episode with a friend who is house hunting and follow us for real talk.
• 5:29
  Speaker 1: And remember I've got a couple of webinars coming up to tackle this exact issues, so stay tuned and drop me a word webinar to get the link.