Property market in NZ to keep soaring
With Auckland at the peak of a property boom, the average house price in the city has hit NZ$1M, double of what it was ten years ago. This makes New Zealand the country with some of the world’s hottest property. The market in Auckland has increased by 15.9% each year and 61% over the last three months beating the last peak in 2007. Despite seeing the rampant increase to house prices in Auckland, the city’s renting market is playing a different tune. The average rent price this month is $500, reflecting a drop from $520 in May. Other cities outside of Auckland saw a rise from $360 to $380 per week. Whilst Prime Minister John Key has not admitted to a housing crisis, it is the opinion of many New Zealanders that this is where it’s headed. For the younger generation, including those who want to start a family, the dream of being home owners comes with its challenges. Investors are now expected to have at least a 40% deposit to purchase property as imposed by New Zealand’s Central Bank. Alas, New Zealand has seen the presence of foreign investors who are among the most interested in their country’s property market. But whilst restrictions for investors may apply to the registered banks in NZ, consulting with a mortgage adviser can provide solutions outside of these restrictions on a case-by-case basis. Our wide panel of lenders can assist in finding a product to suit you as each lender works with different guidelines.