With auction rooms empty, now is your chance

If you are interested in getting into the property market, and you have the means to do so, now is the time. The real estate market in Auckland is ripe for owner-occupiers whether they be first-time home buyers or people looking to upgrade. Think about it, there are a few factors that are contributing to this golden opportunity.

1. Plenty of properties available

Many properties are available for purchase, meaning a broader selection of styles and prices to suit your wish list. If you haven’t noticed, the country has been on a building spree so there are plenty of new properties to choose from and likely to be more coming too. Against that, we know of several investment property owners looking to sell up because higher interest rates have made holding their properties difficult. And an abundance of properties increases the chance of there being one within your price range.

2. Investors are scarce

Real estate auction rooms have been devoid of investors for 18 months because high interest rates and the inability to deduct interest means the numbers just aren’t working for that crowd anymore. It’s back to owner-occupiers with people who just want a home, and with fewer buyers in the market, you’re less likely to end up in a bidding war. On the other hand, the National Party has pledged to repeal that bit of tax law should they get in so investors could be back at some point.

3. Favourable terms

I know that might sound unusual with high rates and tough lending at the moment, but if you can do it now, it’s only going to get easier – read more here about the cycle of high-interest rates. You’ll have more negotiating power because there are fewer buyers. And then when the interest rates do drop, you will be able to chew through your mortgage quicker or rearrange it for lower mortgage payments.

4. Time is on your side

Well, there are two sides to this one. The first is that there is currently a window of opportunity to act between now and the end of 2023. I say that because our mortgage pre-approval pipeline is starting to fill up and I’d say that by Spring 2023 and into Summer 2024 those people will be active in the market creating more competition against you. So, in the months before we get there, is when you have time. You can be firm on your price and have your desired conditions. Previously you could only have five minutes (I’m exaggerating) but now you can have five months as your settlement period! And you can pull out at any point, you are the one in control.

The second side is knowing whether you are in a position to buy or not – it’s one thing to be willing but are you capable? We think it’s well worth finding out now so you can either enter the market before everyone else comes screaming back or you can make whatever adjustments needed in order to be in a position to buy as soon as possible (again, hopefully before everyone else!)

It makes sense to find out, to do your prep work, especially when the market is like this. Get in touch with us, let’s do the numbers and see if we can help you get a key in the door. Our service costs nothing, so what have you got to lose?