Dear Resident,
April saw a fall in the
number of sales in Waitakere City compared to March with a slight fall in the
median price too.
No of Sales
|
Average days to sell
|
Median selling price
|
|
April
|
344
|
29
|
$
633,500.00
|
The big news however was the
reserve Bank (RBNZ) revelling its new measures to slow the rise in Auckland
home prices by hitting investor buyers.
From 1st of October
investors will need 30% deposit and banks will have to carry larger reserves of
cash when lending to investors. This will mean a rise in mortgage rates for
investors in Auckland—an estimated 25-30% increase in mortgage repayments.
The OCR remained the same
but indicators are it will be cut towards the end of this year. In the budget
the rules change such that investors who buy a rental property and sell within
2 years will be taxed on any capital gains.
It no longer matters whether
the purchaser intended to keep the property long term. The grey area of
“intent” has been removed. The RBNZ believes their measures will retard price
increases in Auckland by 2 - 4%.
This may or may not happen but I feel prices will still rise
strongly because of the slow to fix housing shortage. Rents will increase as a
result of these measures.
Time will tell but as a long
term rental investor these measures will not deter me from investing in the
best investment option in NZ - safe as houses and the best returns.
Massey 64.4%
Glen Eden 64.7%
Te Atatu Peninsula 70.0%
Henderson 96.5%
Best
wishes,
John
Goodrum
Licensee
Agent REAA 2008
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