Four months ago, there were 180 homes for sale in Lower Hutt, now there are well over 600. So, is now the right time to buy or sell? There are articles about where the market might be going, we’ve seen various predictions all before. Let’s just say, none of us are so clever that we really know when the best time is to buy or sell. The market will always ebb and flow. If you can pick the perfect timing, you’re better than most.
One thing we know, over time prices always go up. On the way, there are so many influences pushing and pulling the market. One political party introduces non deductibility of interest, another promises to remove it, as has happened in the last month. Invariably you buy now, and prices drop, or you don’t buy, and they go up, or you lock in an interest rate and get it wrong. That’s the property market. Speculators have triumph or regret, that’s the risky game they play. Most of us just want a home that works for us, that is comfortable, that is suitable, a place for us to happily enjoy living in.
If you need a home, another home, a larger home, a smaller home, less maintenance, more convenience… too much analysis could stop you from being where you prefer to be. Here’s one way to look at it, trade in the same market - Sell cheap, buy cheap, sell high, buy high, it’s all relative.
There is a chance the current dip in the market could be your chance to act counter cycle. You never know for sure what’s around the corner. The latest news is that the government has changed the Credit Contracts and Consumer Finance Act (CCCFA) and already mortgage brokers are saying that it will help around 20% of their clients get back into the market. Commentators are saying “when it is ‘obvious’ that a loan is affordable to the borrower, banks should now be able to help.”
Interest rates are going up, and it looks like they will continue doing so for a while. This will affect how much banks will lend purchasers. If you are selling, todays price may be better than it will be for a while. If you are buying, locking in a fixed interest rate now may help you more than if you wait for prices to come down.
Therefore, what should you do this year? Here’s an idea, chase your dreams and step forward into your future. Our borders are opening up, when the ex-pats and immigrant workers, that NZ desperately needs across most sectors, start coming in, you’ll be pleased you got ahead of the rush.