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There is a certain moralistic view which many analysts have of the housing market. It goes along the lines that people who make money from rising house prices are not as worthy as those who make money from working 40 hours a week, and one day they will get their comeuppance through house prices going back to where they were in some imagined glory days.

While homeowners are relishing the lowest home loan rates we have seen in NZ, investors are doing it tough where ‘safe returns’ at the bank are now often no better than inflation. So what other investment options are there?

There could be emerging opportunities for investors in the current market, but to take advantage of them you need to be reviewing your existing portfolio now.

Welcome everyone to the first of a new column I’ve commenced writing for Squirrel. Just in case you don’t know who I am, I used to be Chief Economist at the BNZ, and before that had a few years with Westpac in Sydney and Wellington. Late last year I went into business for myself and spend my time doing lots of writing, the occasional media interview, and making presentations.

More than ever, the current economic crisis has highlighted the importance of (1) having a clear investment strategy and (2) managing your risks. What does your risk management strategy look like? What happens if your tenants cannot pay the rent? What happens if you sell a property and the bank keeps all of the sales proceeds?

This article is split into two sections. We’ll first explore the supply and demand issues, and secondly get into some tips and tricks to consider. So, what drives the housing market and what does that mean post COVID-19?

The adage 'cash is king' is never truer than in a crisis. Cash gives you the flexibility and freedom to respond to changes. Now is a good time to have a small cash buffer in your mortgage. The thing to remember is banks don’t want you to default on your mortgage, and they have temporary options in place which are designed to support those who find themselves in financial hardship.

In our evolving interconnected world, coronavirus has become the perfect tabloid media clickbait. It plays straight into our anxieties and fears. We are lemmings with an inherent magnetism towards mass hysteria. Let's get some perspective.

Auckland has come back to life after two years of lacklustre house sales and easing house prices. At the same time, the rest of New Zealand is taking a bit of a pause after a strong run of price appreciation.

For the past thirty years there has been a strong correlation between property prices and interest rates. As interest rates fall, property prices go up. So, as interest rates continue to fall, property prices could potentially increase further. My view is that won’t happen.

The Reserve Bank has come out with a gloomier outlook for the NZ economy and the global economy. In the short term that means the potential for lower mortgage rates has increased.

Housing markets typically move in cycles – often referenced as the ‘property clock.’ Anyone with an interest in property sits around guessing what time it is. If you observed the clock over the past thirty years, it has largely worked out, but right now reading the property clock is getting harder.