There are worrying signs about the real estate market just now.
I attended an auction last night and saw a little brick & tile unit in Torbay sell for $741,000 – there were 5 bidders.
Our real estate market seems to know no bounds and continues to surge.
But the government and the Reserve Bank are totally focussed on stopping this runaway market.
Whether through a land tax (doesn’t sound like it) or a debt to income ratio which is pretty likely according to Isaac Davison of the New Zealand Herald. Of course, in the short term this will hurt first home buyers, which is a political hot potato, listen to Mike Hosking talking about this new hurdle for first home buyers here.
Last year, about now, John Key started thinking out loud about a “bright line test” and announced that it would take effect from 1st October last year.
During July and August of 2015 the market went ballistic as investors tried to lock in their purchase before the 1st October deadline; and then it went very quiet in October and November as buyers figured out their finances. Prices eased.
Will the same happen again? Quite likely.
The new regulations may even come into effect immediately.
The Result?
A fall in house prices. Great news for buyers in the long term and probably our economy. But not much good news for you – if you are thinking of selling.
NOW is the time to crystallise the market gains of the last couple of years.
NOW is the time to make your move.
Last years’ winter was an excellent time to sell – spring not so good.
Whatever your plan is, take advantage of the current market – with high energy buyers wanting to buy to beat any new taxes or regulations.
Don’t be a shoulda, coulda, woulda – DO IT NOW.
Give Tony a call on 0800 61 8888.
