Housetalk Issue 163

Dear Resident,

March was another month of rapid price increases in residential property values and also a month of very high sales. West Auckland out performed most other Auckland suburbs in terms of price rises in the first quarter of 2015 with a 5.2% growth in property prices. That’s 5.2% in 3 months.

The reserve bank has for some time been looking at making it harder for investors to buy rental properties so as to reduce the demand in Auckland and in turn halt or slow home price rises.

From September this year investors will pay a higher mortgage rate than buyers who will live in the properties and banks will have restrictions on the amount they can lend to rental investors if the investor depends on rent to pay the mortgage.

This may have a small effect on house price rises but will in no way address the real problem which is the supply of houses. If you are looking to purchase a rental property now is a good time and fixing a mortgage for 2 to 3 years would be a good move.

Capital Gains March 2010 - 2015 - Median Prices

 

Te Atatu South 72.0%

Kelston 91.3%

New Lynn 66.8%

Glendene 94.7%

 

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