Use A Registered Valuer In Uncertain Market
Monday 8 November 2004
Use A Registered Valuer In Uncertain Market Says Property Institute
Reports out today further indicating that the property market was slowing down suggest more than ever that people should get advice from Registered independent valuers before making their buying and selling decisions, Property Institute CEO, Conor English said today.
This follows the ASB Bank quarterly survey of housing market sentiment showing that more people are expecting prices to fall than expecting them to rise.
Mr English said today, "More and more indicators are pointing towards a slowing in the property market. Immigration changes, increased housing supply, negative pressure on rents and rising interest rates are all having an effect, with sales volumes down and average values starting to fall off their peaks."
"Rising interest rates will bite sooner or later as they impact on cash flow. For example a house with a mortgage of say $250,000 at 6% interest means the interest cost is $15000 or $288 per week. At an interest rate of 8% then the cash required to pay the mortgage is $20,000 or $384 per week - about $100 per week increase or $5000 per year. This money has to be found somewhere and the increased cost will effect house values. And the Reserve Bank Governor may not be finished his monetary tightening just yet," Mr English suggested.
"Over the last three years owners have experienced almost guaranteed rises with an average increase in sale prices of 52%. However this trend appears to be over.
"It is now very important that when people sell or purchase a house they get good independent advice on its value to help ensure that they don't sell for too little or for too much. Registered Valuers can also offer additional independent advice that can greatly assist purchase or selling decision process. The earlier in the decision making process the valuer is involved the better. Registered valuers are not paid a % commission, adhere to mandatory standards and are subject to a code of ethics and disciplinary processes.
"For an investment of around $500 potential purchases and sellers could get good independent information and advice that could save them thousands of dollars on an asset worth hundreds of thousands. It is money well spent," Mr English concluded.