Summer boosted by many favourable conditions
Century 21 New Zealand
Wednesday, 23 October 2019
By Derryn Mayne - Century 21 New Zealand owner
The Reserve Bank didn’t lower the Official Cash Rate last month, but let’s not forget it has already given the local real estate market a good shot in the arm.
At the end of September, the Reserve Bank announced it will maintain the Official Cash Rate at 1.00% for the time-being, with interest rates expected to stay at record-low levels. This followed its move in early August when it surprisingly slashed the OCR by 50 basis points.
This summer we’ll see a lot of first-time buyers entering the market and existing homeowners deciding to borrow more to purchase their next home, possibly even their first investment property. Many Kiwis were holding back, but since last month’s big OCR cut more will be taking the plunge this summer regardless.
I know I’ve said it before, but now is a great time for first-home buyers to do their sums and seek professional advice on what their rent payments are compared to the cost and commitments of servicing a mortgage. They may be surprised to find that the difference is minimal, and in some cases even less.
Having taken effect on 1 October, the Government-backed schemes for first-home buyers now have lower deposit requirements with the potential to purchase using only a 5% deposit.
Add that to the wider eligibility which was also part of the housing reset, plus record low interest rates, and I think more first-home buyers will discover they can purchase earlier than they’d possibly planned. This may see the market perform much better than some had expected this summer.
If you’re thinking of buying in the next year or two then you should talk to a mortgage broker now. Buyers need a plan. Even if you know you’re not able to buy today, a mortgage broker can help you plan where you need to be and how to get there.
All the numbers point to Auckland having slowed, returning to more sustainable and realistic levels which will also influence the market. At the same time, many other parts of New Zealand are still enjoying good growth.
Century 21 is excited for the Kiwis keen to buy this summer. What’s more, with fewer competing listings around, it also provides vendors with a great opportunity for their properties to be noticed.
Since Century 21 New Zealand got back in the driver’s seat, prospective franchise owners, salespeople and staff can see greater autonomy in Century 21’s direction and local decision-making, which they like. They’re also seeing our strong digital marketing presence and the company’s getting plenty of good PR.
Adding to that was the recent appointment of Denika Hair as Century 21 New Zealand’s Franchise Coordinator. Her appointment reinforces Century 21’s current momentum and our ongoing commitment to our franchise owners around New Zealand.
A further positive development is the arrival of Century 21 Local Realty. The brand-new franchise is set to officially open its doors in the coming weeks to service the Auckland growth areas of Papakura Takanini, Karaka and Drury.
In fact, even before its office has opened on Broadway in Papakura, Century 21 Local Realty is doing considerable business with Iresh Tennakoon picking up a sales award for the last quarter – highlighting the strength and experience of the new Papakura sales team.
Derryn Mayne is the Century 21 New Zealand owner.