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

 

Winter Will Be Ripe For First-home Buyers

This winter young Kiwis will have the best opportunity to get on the housing ladder in more than a decade, says Derryn Mayne, Owner of Century 21 New Zealand.

“Rents may have been frozen and there’s more choice for tenants with the likes of many Airbnbs now long-term rentals. However, rents are likely to stay relatively high when compared to the falling cost of servicing a mortgage for those renters living outside our international tourism destinations or downtown Auckland,” says Ms Mayne.

With many interest rates now well below three percent, and with the Reserve Bank scrapping its mortgage loan-to-value ratio (LVR) restrictions, lower deposits are now required to secure a mortgage and ongoing repayments have never been cheaper.

“Banks will still be tough when assessing loan applications and people’s ongoing ability to service a mortgage, but when all this starts settling down and property valuations become clearer, you’ll see banks more willing to take on new lending,” she says.

The Century 21 boss says prospective first-home buyers with good job security or a couple who are both working, should seriously consider this winter as a good time to take the home ownership plunge.

“Next-home buyers have a natural inclination to market their homes in summer. However, the season is irrelevant for first-home buyers, and both buyers and vendors should now seriously consider that fact. First-home buyers don’t have to worry about selling their property first, they can secure pre-approval for a loan, then buy. It’s a powerful proposition.”

She says this winter may also prove a prudent time for first-home buyers to purchase, as house prices might rebound sooner than expected.

“Commentators agree that real estate will take some kind a hit, but equally there’s debate on how far away the recovery is. Also, different parts of the country will be impacted differently.

“Rental incomes and property values are vulnerable in areas like those heavily dependent on international tourism or foreign students. In saying that, if domestic tourism rallies, an Australasian travel bubble is opened, and our export education sector is salvaged, then the likes of downtown Auckland and Queenstown may fare better than anticipated,” she says.

Derryn Mayne says as well as strong first-home buyer interest, Century 21 salespeople are reporting plenty of next-home buyers, eyeing a bigger or better home, and keen to take advantage of record low interest rates and vendors increasingly willing to negotiate.

www.century21.co.nz

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

It’s All In The Genomes: New Study Reveals Scale Of Havelock North Campylobacteriosis Outbreak

When the campylobacteria outbreak hit Havelock North in 2016, no-one fully understood how widely it affected the local communities. Gene-sequencing technology used by scientists has shown the true scale of the outbreak. The joint study from ESR, Massey ... More>>

ALSO:

Tiwai Point: Rio Tinto Announces Plans To Close Tiwai Point Smelter

Rio Tinto has just announced that it will wind down New Zealand Aluminium Smelters - the Tiwai Point smelter - saying the business is no longer viable. More>>

ALSO:

Freight: New Report On Auckland Port Relocation

The Government has released a major new report on the options for relocating the Port of Auckland’s freight operations while deferring any decision on the issue. More>>

ALSO:

Taxation: Black-Market Tobacco Sidesteps $287 Million In Excise Tax

Year-on-year increases in consumption of illicit tobacco in New Zealand have seen illegal trade swell to 11.5% of the total market. If consumed legally, illicit products would have netted the Government $287 million in excise tax during 2019. Independent ... More>>

ALSO:

Energy Sector: Meridian Spilled Water To Hike Electricity Prices - Authority Ruling

The Electricity Authority has found that generator Meridian Energy manipulated the power market, costing consumers about $80 million. More>>

ALSO:

XE Data Update: RBNZ Official Cash Rate Decision

The RBNZ will keep the Official Cash Rate (OCR) at 0.25%. T he key points in the RBNZ statement are: RBNZ keeps the OCR unchanged at 0.25% Maintain the LSAP (large scale asset purchase) at NZD$60 billion. Committee prepared to use additional monetary ... More>>

ALSO:

Electricity: Kiwis Ignore Promise Of Cheaper Power

Electric Kiwi and Flick Electric Co are joint winners of Canstar Blue’s award for Most Satisfied Customers | Electricity Providers From putting on an extra layer – rather than turning on a heater – to turning off lights and choosing the energy-saving ... More>>

ALSO:


ASB: Regional Economic Scoreboard Q1 2020

ASB NZ Regional Economic Scoreboard Gisborne still the place to be It has been Gisborne’s year, and the region comes out tops on our regional rankings for the fourth successive quarter. Like everywhere, question marks are about the COVID-19 impact on the future. ... More>>

RNZ: Economic Activity And Business Confidence Bouncing Back

Two surveys from ANZ show business confidence and economic activity have rebounded, but uncertainty about the future remains extreme. More>>

ALSO:

NIWA: The Climate Record That Keeps Getting Broken

Among the multitude of New Zealand climate statistics there is one record that continues to be broken month after month. Since January 2017 there has not been one month that recorded a below average nationwide temperature, according to NIWA’s seven station ... More>>

ALSO:

Govt: Extended Loan Scheme Keeps Business Afloat

Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small ... More>>

ALSO:

Science: 2019 Prime Minister’s Science Prizes Announced

The 2019 Prime Minister’s Science Prizes have been announced in a digital livestream event today. The Prizes recognise the impact of science on New Zealanders’ lives, celebrate the achievements of current scientists and encourage scientists of the ... More>>

ALSO:

Stardome Observatory: Young Kiwi Astro-Photographer Shoots For The Stars

Matariki by Josh Kirkley. The stars are aligning for up-and-coming Auckland-based astro-photographer Josh Kirkley (Kāi Tahu). During lockdown, one of his images was picked up by NASA and shared on the space agency’s Instagram to its 59.2 million ... More>>


DCANZ: Time For EU To Commit To A Level Playing Field For Trade

The Dairy Companies Association of New Zealand (DCANZ) has welcomed New Zealand Trade Minister David Parker’s statement that it is unacceptable for New Zealand exporters to continue facing an ‘unlevel playing field’ in the EU. Details leaked ... More>>

ALSO:

New Zealand Government: Supporting Kiwi Businesses To Resolve Rent Disputes

The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. More>>

ALSO: