Are you worried about rising interest rates, getting a mortgage or your house falling in value after you buy it?
Trusted and respected economist Tony Alexander addresses these concerns in his latest edition of Tony’s View.
Summarising the article, he points out the following for….
Interest Rates
- Fixed mortgage interest rates have started to decline.
- We have already seen the peaks for almost all fixed interest rates for home buyers.
- Over the next few months buyer concerns about interest rates are going to fall away.
Access to Finance (getting a mortgage)
- The credit crunch was at its worst very early this year.
- Competition between banks for mortgage business is strong.
- Credit availability is likely to improve bit by bit for home buyers from here on out.
Worries About Falling Prices (…after you’ve bought your home)
- More and more potential buyers will give thought to how close we might be to prices bottoming out and how much prices have pulled back from their ridiculous heights of late last year.
- At some point buyers generally will lose their price fall fears, or just ignore them in the interests of securing a property from the large number of listings.
The Challenge for First Home Buyers…
It’s time for First Home Buyers to give serious thought as to what matters to them…
- Do you hold off from buying because you want to avoid the last 5% fall in prices and buy at the bottom so you can feel clever?
- Or do you want a house in which to raise a family?
Why would you not look to buy now when…
- Prices are down 10%, (a lot more in some locations).
- Vendors are increasingly open to offers.
- Banks are increasingly eager to lend and may trade cashbacks for discounted fixed rates.
- There are twice as many properties to choose amongst than last year.
- You have a job and can probably shift voluntarily to another one for higher wages if you wanted given the extreme unsatisfied business demand for staff.
- There is a greater chance of finding a property which meets your anticipated needs than at any other time since 2015.
- Migrants have yet to return in numbers.
- Investor buyers are sitting back waiting to see what happens with the election and not competing against current active buyers.
See the full article here: https://www.tonyalexander.nz/
If you’d like to discuss your situation and how to get into your own home faster, reply to this email.
Tim Oliver is a Financial Adviser and director of First Mortgages NZ Ltd and Oliver Financial Planning Ltd. The information provided in this article is general in nature and is not intended to constitute advice to any person.