Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Lack of Hamilton buyers creates investor opportunity

MEDIA RELEASE
14 February 2014

Lack of first home buyers creates investor opportunity in Hamilton market

Hamilton, New Zealand – Lodge Real Estate’s managing director, Jeremy O’Rourke, said 2014 heralds good news for property investors looking to snap up better yielding residential properties in the Hamilton market.

“In January we’ve really started to see the effects of the Reserve Bank’s intervention in raising the loan-to-value ratio (LVR) last year. First home buyers have really pulled out of the market.

“The LVR challenge for first home buyers, however, has created great opportunity for investors. There are more quality homes to choose from under $400,000, plus prices in the lower half of the market have been suppressed in recent months.

“As a consequence, investors taking advantage of the current market and subsequently renting their new properties are getting better yields than they would have, say, six months ago,” explained Mr O’Rourke.

Overall, Hamilton city’s median house price has decreased to $350,000 in January 2014 from $385,000 in December 2013. This compares with a median of $320,000 in January 2013.

“The decrease in the median can’t be analysed in isolation. The fact is there was a spike in the median in December was due to a lack of buyer activity in the lower half of the market, while the over-$400,000 end of the market remained strong during that month.

“January’s median really just reflects the market returning to overall levels of buyer activity similar to October and November 2013,” explained Mr O’Rourke.

The number of homes sold in Hamilton during January 2014 was 156, as compared to 204 sold during December 2013. This compares to 180 sold in January 2013.

Lodge Real Estate is Hamilton city’s largest real estate agency by volume.

-ENDS-

Hamilton housing market January 2014 - key facts:
• Hamilton’s median house price was $350,000 in January 2014.
o The city’s median house price has fallen from $385,000 in December 2013.
• The number of homes sold in Hamilton during January 2014 was 156.
o This compares to 204 during December 2013 and 183 during January 2013.
• The number of homes listed on the Hamilton market has risen with 894 homes available for sale in Hamilton at the end of January 2014
o This compares to 880 at the end of December 2013 and 945 at the end of January 2013.
• The average number of days to sell a Hamilton home was 42 in January 2013.
o This compares to 30 days in December 2013 and 41 days in January 2013.

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news