February 2003 | Issue 1

WHAT IS ALL THE HOOPLA IN THE PROPERTY MARKET ABOUT?

With the America’s Cup taking Auckland by storm and summer (finally!) arriving the local property market is continuing to experience remarkable increases – in some cases 20% capital growth.

FACTORS
Political unrest in the world has caused uncertainty in international markets, however the land of the long white cloud has thankfully remained relatively unaffected. Foreign investment, rising immigration and the almighty tourist dollar have all assisted in fuelling our strengthening Kiwi economy. Keep those tourists coming!

THE MARKET
With residential borrowing rates dancing around 7% combined with low inflation and strong immigration, the Auckland property market is booming. The rest of the country is also riding the property wave, resulting in investors scrambling to maximise returns and capital growth in areas as far south as Invercargill.

With a margin of 3% (borrowing at 7% and returns of 10) investors are enjoying a buffer between debt servicing and returns on equity, along with the many tax advantages associated with owning investment property. Many smart investors are capitalising on low interest rates and leveraging off existing equity bases to increase their holdings, assisted by increasing values.

GETTING STARTED
In today’s competitive market you can own a home for as little as 5% deposit, however a deposit of 20% is preferable, for lending standard criteria.

PRIME TIP!
The reserve bank has recently predicted that interest rates will remain constant for the next 18 months and with the above factors combined, the property market looks set to maintain current growth. Existing trends should continue to steam along over the next 6-12 months!
So… don’t count on property prices dropping in the short term…NOW IS A GOOD TIME TO BUY!
YOU TOO CAN BE IN THE PRIME POSITION!

How can I help?
I offer a free service arranging mortgages with all of New Zealand’s major lenders and can structure the best deal for you - whatever your circumstances. Whether you're an experienced investor or a first time buyer - I would be happy to provide a free, no obligation consultation.

Please click here to book your appointment amshorter@propertypack.co.nz

Be in to Win - Tell a Friend
Have a friend interested in buying a property? All referrals will automatically go into the draw to win a weekend at the Stamford Plaza Auckland to be drawn on the 1st of March.

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021 995595 or email me at abc@abc.com

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