April 8

Looking to buy, or not sure if you should buy a home? Please Read On!

Financial Advice, Home Loans, Mortgages

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If you are a home buyer that has been patiently waiting on the sidelines, then it’s probably safe to say that the ball is in your court now ……….

So, are you still looking to buy?
Or are you worried?
Scared even?

WE GET IT – house prices might drop further from its current levels. However, no one can guarantee that this will definitely happen, neither is there any consensus and/ or belief on the magnitude of the expected house price drop.

But how will you be able to pick the bottom?

We observe residential property auctions all the time, and what we are seeing is that a lot of properties are “getting passed in”¹, then sell with a price after a bit of negotiation.

More than ever a first home buyer has a chance to not only buy but to get a deal and not overpay.

But what about mortgage interest rates you say?
Yes, they have increased significantly in the last few months, and they may go up further – but if a bank approves you then they think you can manage on a much higher interest rate (referred to as a “test rate” by the banks).

And do you know what high interest means? Rents will go up – a quick search on rentals on Trade Me confirms this!

Interest rates will eventually go down. Yes, it may take some time before it happens. Rent on the other hand is less likely to go down.

So, either keep renting or go buy your own place and generate wealth for yourself and your family.

For expert advice on lending that suits your needs, please contact our in-house mortgage specialist and financial adviser, Abhi Dudeja, on 022 195 0957 or at: Abhi@networkfs.co.nz

¹ This is when the top bid at an auction does not meet the vendor’s reserve price, or the lowest price they are willing to sell the property for.

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