Dear Resident,
The most emphatic election result with no change of government means ongoing stability. The financial markets and business in general hate uncertainty. The uncertainty has now been removed and the economy is set to continue to improve. This should be good for all New Zealanders as it should produce a rise in living standards.
Probably the biggest inequity has been brought about not by the government but the reserve bank and its LVR (loan to value ratio) restrictions. This has clearly not halted or probably even reduced the continued rise in house prices but has put home ownership out of the reach of many first home buyers. The gap has been filled easily by investors buying properties to rent out.
With little or no inflation present in NZ and a very sluggish economy in Europe and Japan the official cash rate (OCR) is unlikely to change any time soon - my pick is not before March / April / May or even June next year.
Prices- yes up again last month in Auckland. Now the general election is over, the economy on track and over 40,000 net migration to NZ in the last 12 months, I predict prices will not just keep increasing but probably increase faster in the next 6 months compared to the last 6 months.
Capital Gains September 2009 - 2014 - Median Prices
Royal Heights 36.1% Sunnyvale 44.4%
Ranui 54.3% Kelston 97.5%
Do you want to know the value of your property? Its probably worth more than you think. Contact me for a free no obligation value update.
Best wishes,
John Goodrum
Licensee Agent REAA 2008
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