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Auckland Property Market

October 2017 Auckland Residential Market

October 30, 2017 by · Leave a Comment 

October 2017 Auckland Residential Market:

The usual spring pick up in the property sales appears to be delayed. House values are growing at their slowest in five years. Nationwide it is under 5% and Auckland is just under 3%. The Auckland residential properties increased by just .8% for the year. The average value for the Auckland region is $1,039,066.00.

The post-election impact on the property market can be largely predicted to the possible ban on foreign buyers to the New Zealand residential market. Also by reducing immigration flows this is likely to slow the market even further.

Labour has advised that they want to build $100,000.00 new homes over the next decade. NZ first wants to restrict foreign investment in housing and in doing so, free up more home for locals. What the new Government will decide will affect the current housing market.

The new Government on Friday advised that they are going to increase the petrol tax in Auckland by 10 cents a litre. This is to pay for new large public transport in Auckland. This will increase the costs for one third of all New Zealanders. It will also cause inflation as everything in New Zealand is delivered by road. This will lead to Reserve bank increasing all interest rates to try and bring inflation down. When you give to one person you have to take it from another to pay for it.

Most new home buyers do not have a 20% deposit. This is because this type of customer is considered as a much higher risk to banks and lenders. With the reserve bank limiting the number of high loan to valuation customers, this has limited the amount of money each bank can offer to new home buyers.

If you are reviewing your financial situation and looking to refinance your home loan call Kevin on 021532569 to go over the options available to you

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