Twenty Reasons Not To Abandon The Housing Market

Lucy Whitelock-Bell, a Auckland renter, has been keeping an eye on the situation for the past three months. on the Trade Me advert for her old home. Her former three-bedroom flat, the upper section of a two-storey bungalow in the Auckland suburb of Kingsland, was “tiny” for $750 a week, the water resources engineer says. It was fine for two people but not for three. Then, when the pandemic happened, at least one of us would have to do lockdown somewhere else. You couldn’t have all three in the house.” You may change your strategy to renting out your “doors” as opposed to flipping.

After remaining stagnant for three months, New Zealand rents climbed to new highs in June. December was the hottest month for property prices, with record highs across all regions. This site provides information to buyers, sellers, and agents about ‘for sale’ prices by property type and size. 1) Once we sign a new tenancy the rent will be fixed for a further 12 months. We can agree on a date for the end of the tenancy, but we cannot guarantee that there will be no vacancy.

Are There Any Exemptions To The Healthy Homes Standards?

Banks are flooded with deposits, largely due to the Reserve Bank’s excessive money printing operations in the past two years. The RBNZ overreacted to the pandemic, and banks don’t need to offer high deposit rate to attract funds to support domestic lending. Investors are discouraged from selling their properties and transferring the funds to a bank if they do not have attractive interest rates. They might sell and invest in a diversified portfolio of equities, but global sharemarkets are wobbly. Many properties are being returned to the pool of short-term rentals for foreign tourists. As the rental pool shrinks, rents will rise. People will be encouraged to buy a property instead of renting.

rental market update

experts or try our extensive self-guided video tutorials. You can choose from weekly interactive online training sessions led by our experts, or you can try our extensive help guides. “At the end, I can’t expect rents to go up the way they are. I don’t believe they are sustainable.” A number of other issues include the beginning of a brain drain and a lack of international students to fill properties.

Recently, I read in a newspaper headline that house prices had dropped because some banks had reduced their fixed mortgage interest rates for two years. But interest rates aren’t the only factor causing house prices to go down. This could lead to the Fed raising short-term rates at levels not seen for years. The consensus is that the current rise of mortgage rates is likely to continue. 2023 mortgage rates will rise and will continue to rise over the next three-years. Rates are expected to reach 6.7% by 2023 and 8.2% by 2025, according to a housing survey released by the New York Federal Reserve.

At the time of writing this article, a simple search on Trademe returned 38 properties in Epsom with 4 bedrooms 2 bathrooms or more, and the listing… Market rents for Kingsland properties comparable to yours range from $480 per week to $529 most. Whitelock-Bell and her flatmates were given another year on their fixed-term lease at $765 per week before they moved out. The flatmates declined to renew and as soon as the property was listed online, the price dropped to $760 – “a slap in the face”, as Whitelock-Bell describes it. Even though we recently saw mortgage rates rise as a reflection of the economy, experts suggest it will be a while before mortgage rates rise significantly — for the same reasons as the fund rates.

The trends and forces emerging in 2022 was the focus of this year’s New Zealand Market Outlook. CBRE presenters spoke out about key market changes and highlighted some highlights as we move into 2022. See how property is performing as a whole in Taupo, even taking a look back at how the past month compares to the same month last year. 8,174 lifestyle properties were sold in the year to May 2022, -2,772 (-25.3%) fewer than were sold in the year to May 2021. The value of lifestyle properties sold was $10.11 billion for the year to May 2022.

We use professional photos to present your property in its best light. Proudly presenting the latest residential rental data as supplied by the Real Estate Institue of New Zealand . The Massey University Residential Market Report tracks mean rental rates and rental bond numbers. Make the tenant aware how habitual rent arrears can affect the tenant’s credit history for any future tenancies. Davidson emphasises that for many owner-occupiers, the gains are not a cash windfall, as they will typically just be ploughed back into their next property – potentially alongside a larger mortgage too. Auckland and Wellington saw the biggest falls in the portion of properties resold for a gross profit.