I shared this article before and I saw this article was spreaded in one First home buyer community in facebook
I agreed 50% of this article, but not 100%.
NZ real estate is quite complicated to some extent due to geo graphic features, materials, neighborhood, future development, bonus features, hidden value etc
It resulted in one group of people : property speculator who could profit from real estate.
But most of investors are amateur and couldnt think deeper enough
Always tell my buyers “ take caution beforehand better than recify ing the issues later.
As the investors, you need consider all elements in buying a property as the investment.
But as the first home buyers, you need focus on buying a best home within your budget by using method : consider to sell it before you buy it.
If you dont have enough knowledge and find the people to help you out accordingly
As I remeber economists predicted 20-30% price decrease during First covid 19 lockdown on march 2020.
I told my buyers it wont happen at all and you could check the email which i sent to one buyer who inquired during that Period and I gave the advice to him on the basis of facts and later I was right for market trend.
Basically bottom logic for economists is poor economy situation which is the fact, national is trying to reboot the economy at moment, unless national failed and economists will be right.
20-30% value drop was predicted by economists during covid 19 and labor did ocr and lvr cut which stimulate the economy under QE effect and market was soaring even labor increased the timeframe for bright light test and took away the interest deductability which didnt stop the market until interest rate was increased And CCCFA was used mid of Dec 2021 which reduced people affordability.
Now facts are
– 165,000 one off immigrants
– friendly immigration policies
– less stocks would be Built under current economic situation
– Restriction on development from council and infrastructure which would reduce the new supply
– potential interest rate would be lowered consistently under current economical situation.
Like i said before, nature of nz housing market is productivity issue and we cant produce enough to meet the demand
Especially for Auckland, Auckland population might reach 2m by 2030 and how could we produce enough houses during this Period?
If you are the First home buyers, just buy and sit there for next round to move up.
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