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Should you buy a
On the flip side, some Kiwis are likely increases in the value of the property, and how stable your own
to have mortgage repayment house right now? property. income is.
problems as they struggle to make
ends meet over the next two or three I’m a property investor Income stability relates to both job
months, although banks have said (Article from Juno Investing) security, but also potential changes
that they will deal with these situations Looking for deals right now would in your salary. You’ll want to
responsibly, and it’s unlikely that we If you had been thinking of buying make sense, considering the consider how likely this is for you,
will see anyone lose their home in a house, should you go ahead environment is changing and people and to what extent.
anything other than the most extreme with your plans even with the are uncertain – so you may have
of cases. coronavirus outbreak? Ryan less competition out there. And, if you’re feeling stuck about
Smuts, a mortgage adviser at Kris whether you should buy or not,
In summary – if the crisis is over Pedersen Mortgages, gives his You may also have some vendors speak to a mortgage broker,
quickly, there’s no need for panic. tips. selling properties at a bargain. They property specialist, or financial
might sell their homes due to their adviser who can help you based on
Expect prices to flatten or even take a Things are changing at a rapid pace, situation changing or because they your personal situation.
small negative dip in some parts of the to say the least. For those out in the no longer want to carry out the
country – then recover over the market as a purchaser, it seems like renovations they’d planned. Published 24 March 2020
(Article from Juno Investing) use open homes and auctions as following 12 months. knowing what to do is difficult.
sales tools. If you can buy well in any market,
As we find ourselves in the midst of But if we’re still dealing with Covid-19 I’m a first-home buyer then you hedge your bets against a
a four week lockdown due to the But life will go on, and houses will still by Christmas? That’s a completely changing market. Focus on your
coronavirus, property commentator change hands. different conversation. If you're a first-home buyer and are buy price.
Ashley Church reviews its effects on looking at property right now, I think
the New Zealand property market. It’s also worth noting that for house Published 24 March 2020 it would be smart to consider what There could be market stimulation
prices to fall, people have to be selling type of property you buy.
Do I think the property market will be their homes for less than the market Ashley Church is a property Lower interest rates can stimulate
affected by the crisis? previously said they were worth – but commentator for OneRoof.co.nz. Look at the fundamentals of the the market, as we saw with a
sellers will face the same sales He’s been a media commentator on property, almost like an investor significant 0.75 per cent reduction in
Yes I do, but the extent of that effect process difficulties as buyers, so it’s property for more than 20 years. would. This should be about the the OCR on 16 March.
will depend on how long the crisis unlikely we’ll see much change in Email him at ashley@nzemail.com desirability of the property, like
lasts. If the worst of the impact is over prices during the crisis. And location, local amenities, and But there are other things
by June or July, then I would only confidence will quickly return when it’s transport. happening too, like employment
expect there to be a small hit on the over, fuelled in part by the historically instability across a range of
market, but if this thing is still with us low interest rates resulting from the Understand that your first home is industries – tourism, hospitality, and
by Christmas, the consequences are Reserve Bank’s recent OCR cut. unlikely to be your last. That means retail, to name a few.
likely to be much more serious. it makes sense to consider looking (These articles do not contain any
It’s also worth noting that the New for opportunities where you can buy Government subsidy packages will financial advice and have not taken
There’s no question that market Zealand housing market has been a property under-value and do some have a positive impact too. into account any particular person’s
activity will be affected over the next remarkably resilient over the past 40 minor cosmetic renovations to the circumstances. Before relying on
few months. Impulse and ‘casual’ years and has only seen three falls in house to get it up to scratch. Things to consider them, we recommend you speak
house-buying will all but disappear, values over that time – with none of with an independent financial
and even those who need to buy (due those falls getting anywhere near This could mean that you save The important things to consider adviser.)
to relocation, family size, downsizing, numbers that would be defined as a money on your purchase price, but right now when buying property
or economic pressure) will still face a ‘crash’. (continued on next page) also have some tax-free capital would be what you pay for the
more difficult time because they can’t

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Thinking of selling? Contact us for a FREE appraisal!

Chris 0274 960 959 c.grantham@barfoot.co.nz
Karen 0272 961 449 k.mcgehan@barfoot.co.nz