The Auckland market is in a state of flux. So, what is some of the data telling us about house prices?
It's become common practice in NZ for banks to offer cash backs with new mortgages, whether that's a refinance or a new purchase. One of the advantages of using a mortgage broker is they can help maximise your cash back.
12 Month interest rates are particularly appealing at the moment. Kiwibank has most recently offered a 12-month fixed rate sub 4% and many banks are moving in the same direction. This is fantastic for the next 12 months, however it pays to think about what you are going to do post the expiry of this rate.
It’s time to pull out the crystal ball and talk property prices. With house prices falling in Sydney (4.5% in the past year), the question is, will the same thing happen here? For this post I thought I’d develop a bottom-up ‘economic’ model.
It’s convenient and lazy to show that for the past thirty years house prices have doubled every ten years, and even worse to extrapolate it out into the future. For those of you that like a few numbers, strap in as you’re about to exercise your brain, but I promise it’s worthwhile.
I get asked daily what’s happening with interest rates. To answer this question, it’s useful to first define what may affect interest rates. The major influence on interest rates is inflation. As inflation rises, interest rates rise to curb inflation (spending). As inflation falls, interest rates fall to spur spending and economic growth.
As we pass the shortest day and I struggle to get out of bed at a reasonable time, let’s look at 2018 so far.
A few weeks ago JB presented at a property investment workshop on the housing market, the economy, and the effect technology is having on the economy globally.
In typical tabloid fashion, the media desperately try to make news out of anything that drives fear and every eight weeks or so we have the anticipated build up to an OCR announcement.
Here’s my view of the year ahead and my rationale for that forecast. To be honest it’s no different from the view I’ve been writing about for the past six months.
With the election almost over, warmer weather and spring home loan campaigns in full swing, there appears to be some life coming back in the market.
The election will do nothing medium term to interest rates. Fundamentally not much will change that would impact on inflation or on rates.