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

 

OCR Hike Won’t Put Renters Off Buying First-homes

“Another OCR rise won’t dent the enthusiasm. That’s because for the likes of first-home buyers paying a mortgage remains comparable, or even cheaper, than paying the record-high rents we’re seeing nationwide,” says Tim Kearins, Owner of Century 21 New Zealand.

Tim Kearins, Owner of Century 21 New Zealand

His comments follow the Reserve Bank lifting the Official Cash Rate by 25 basis-points to 0.75% - marking the second consecutive OCR hike by the central bank in over seven years.

Mr Kearins says while banks have already increased their interest rates in anticipation, they’re nonetheless heading on an upwards track. That will only see buyers more motivated to act, making the most of low interest rates this summer.

“People are waking up to the fact that they can either buy and set their interest rate at say 4.5% or wait and pay 6% - which is 33.3% more! Further, many pundits doubt property prices will drop, so waiting is now not much of an option,” he says.

Trade Me last week released its latest Rental Price Index which confirmed national rents hitting new highs, with the median weekly rent on its site at $560 in October – up 8% in 12 months. At the same time Auckland’s median advertised weekly rent hit $600.

“Rents are naturally increasing as demand remains up with supply down. Property prices also continue to rise. However, we’re at least now seeing the likes of many more townhouses coming onto the market, providing first-home buyers a relatively affordable entry point.

“Century 21 agents and offices are now seeing a big increase in listings as both the temperatures and Covid-19 restrictions start lifting. Along with interest rates still relatively low, buyers’ fear of missing out, or FOMO, continues to drive high demand and sale prices,” he says.

Earlier this month REINZ released its latest Monthly Property Report for October – a month which saw median house prices across New Zealand increase by 23.4% to $895,000 compared to the same time last year.

The Century 21 leader says those contemplating selling their properties can now also see it will be a strong summer, while 2022 remains not so clear. Hence Century 21 is expecting many Kiwis to push play on selling their property in the next two or three months.

“This latest Reserve Bank hike will not deter Kiwis from purchasing property and locking in some good, fixed rates. Homeownership remains a safe long-term bet. It is a proven way to help maintain people’s living standards and lifestyle later in life. That mere fact trumps a lot,” says Tim Kearins.

www.century21.co.nz

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Energy Resources Aotearoa: New Law On Decommissioning Could Be Costly Overkill
A new law on decommissioning oil and gas fields passed by Parliament today has good intentions but is overkill, according to Energy Resources Aotearoa. "We strongly support operators taking responsibility and paying the costs for decommissioning, which is what all good operators do," says chief executive John Carnegie... More>>


Commerce Commission: News Publishers’ Association Seeks Authorisation To Engage In Collective Bargaining

News Publishers’ Association of New Zealand Incorporated seeks authorisation and provisional authorisation to engage in collective bargaining with Facebook and Google. The Commerce Commission has received applications from News Publishers’ Association of New Zealand Incorporated (NPA) seeking authorisation and provisional authorisation on behalf of itself... More>>


Reserve Bank: MPC Continues To Reduce Monetary Stimulus
The Monetary Policy Committee agreed to raise the Official Cash Rate (OCR) to 0.75 per cent. The Committee agreed it remains appropriate to continue reducing monetary stimulus so as to maintain price stability and support maximum sustainable employment... More>>

PriceSpy: Producer Prices Increase
New Black Friday and Covid-19 Report* released by PriceSpy says people’s fear of stepping inside physical shops during big sales events like Black Friday has risen since last year; Kiwis are still planning to shop, but more than ever will do it online this year... More>>

NZ Skeptics Society: Announce Their 2021 Awards, And Dr Simon Thornley Wins The Bent Spoon

Every year the New Zealand Skeptics presents its awards to people and organisations who have impressed us or dismayed us, and this year it’s been hard to pick our winners because there have been so many choices!.. More>>



REINZ: Sales Volumes Leveling Out

Data released today by the Real Estate Institute of New Zealand (REINZ) shows there were 44 fewer lifestyle property sales (-2.6%) for the three months ended October 2021 than for the three months ended September 2021... More>>


BNZ: Auckland Retail Card Spending Bounces Back In Step Two
Bank of New Zealand (BNZ) card spending data released today shows one week of retail therapy at Alert Level 3 Step 2 has been enough to raise card spending in Auckland to levels greater than before the Delta lockdown... More>>