Otago Property Investors Association Inc
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Floating rate borrowers are enjoying the lowest average rates since July 1965, but those waiting for signs fixed rates will rise before switching may be taking a risk, according to BNZ.
A round-up of leading economists take on the RBNZ decision to leave the OCR on hold.
The Reserve Bank has left its official cash rate unchanged at 2.50% today and has indicated that it is likely to stay at this level for "some time".
Favourable tax treatment for rental property investments helped prolong the housing boom and further inflate property values, benefitting high-income investors and squeezing out low earners from the market.
House prices are set to rise by 4% this year, boosted by the RBNZ decision in March to cut the OCR, according to Westpac.
More investors are in the market looking for properties, though their numbers lag behind first time buyers who are finding a warmer welcome at the banks, according to the inaugural BNZ-REINZ real estate survey.
Guidelines around new laws governing the buying and selling of unit title developments have been issued by the Department of Building and Housing (DBH).
Residents quitting earthquake stricken Christchurch are soaking up excess rental capacity in both North and South Island towns, according to First National Group.
The recent recovery in the housing market highlighted by the REINZ March data is "not a flash in the pan that will fade," and may mark the start of housing market recovery, according to BNZ economist Tony Alexander.
Trade Me property figures have revealed that while Auckland landlords are spoilt for tenant choice, the picture is less rosy across the rest of the country.
The REINZ report signalled that house values picked up in March, but according to JPMorgan's Helen Kevans, "we suspect there is limited upside to house prices in the very near term."
The REINZ March 2011 regional commentaries
Auckland recorded more than 50% more house sales in March than February, and 11.4% more than in March 2010, according to the latest Real Estate Institute of New Zealand (REINZ) figures.
Property values remain relatively stable at a national level, though variability continues to be seen between areas and only Nelson has values at same level as 2010, according to the latest QV report for March.
Inflation is the "Gorilla in the room" increasingly making its presence felt, and as interest rates rise, now is the time to fix your mortgage rate, according to Tower Investments CEO Sam Stubbs.
The man behind a property scheme that promised home ownership to vulnerable Kiwi's has been sentenced at the Auckland District Court of breaching the Fair Trading Act, fined $237,048 plus $42,764 in repatriation.
The Government is prepared to pump up to $500 million of equity into AMI Insurance after it reportedly had $1 billion of capital and reinsurance cover wiped out by the two Canterbury earthquakes.
Rents in Auckland reached their highest recorded level in March, increasing by $32 on February to $434, according to the latest Barfoot & Thompson sales data.
Despite media coverage of increased competition among Auckland renters – and corresponding reports of rising rents – average rental inflation across the Auckland region was just 3% in February, according to Crockers Market Research.
The half a percentage point reduction in the Official Cash rate will be good for the economy and a welcome relieve for rental property owners. The timing of the interest rate cuts is excellent, coming just as building depreciation allowances are being removed for residential rental properties. However the interest rate cuts will not fully compensate for the tax changes that came into place on the first of April. In addition, rental prices only increased by an average 3% last year while general inflation was at 4%. Combined with an increase in demand and weak supply, almost everything is pointing to higher rental prices.
New listing rose 9% in March with 12,247 properties brought to the market, however volumes are still 15% below the March 2010 level, according to the Realestate.co.nz March report.
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