In this article we look at the changing New Zealand Property Market and discuss which avenue comes first, when buying and selling your home.
Property prices are likely to go up in the new year per the industry economists. Predictions, not facts because nobody knows.
There are a number of reasons for a home market recovery:
Ultimately though, supply and demand remain driving forces.
The market may still be seen as a “buyer’s market” because there are so many property sale ads across the country. An end of a “recession” doesn’t mean a sharp recovery, it looks like it might take a while before the market gets stronger!
People are afraid of missing out (FOMO), again. Also, the fear of overpaying (FOOP) is not a major concern among buyers anymore.
A comeback is caused by cheaper home prices, more money saved for deposits, more secure jobs, and less restrictive lending rules. Investors are still interested, but there are a lot of first-time buyers currently.
With market trends changing, there is usually a dilemma of do you sell your home before you buy another? Ideally, you sell your property first, before buying another. Settlement dates for both properties are arranged on the same day. However this is not a perfect world and here are some considerations when buying and selling.
You can conditionally offer to buy a house but may not know how long it takes to sell your current home, risking a seller accepting a simpler offer.
This is the safest choice, because you’ll know exactly how much you can spend on your next home. However, the downside is that you might have to rent a place for a short period of time, if you can’t find the home you want, before your current one settles.
If you would like to buy a property prior to selling your existing home, then you might want to consider a bridging loan. These are short-term loans, that allow you buy a new property, prior to you selling the existing one. You may need to to make monthly repayments on two separate home loans, at the same time, which could cost a lot. Your Mortgage Adviser can offer options to get the best deal and structure for this.
You can list your home for sale, while you look for your next property. You are able settle on both homes at the same time. Consequently, you get to keep the existing home loan terms that you already have, for as long as possible.
So, if you’re buying or selling a home in New Zealand, it is important to be aware of property market trends. Talk to a Mortgage Broker to learn about your financial choices.
Angela is an accredited Financial Adviser, licensed under FSP742251 and has been in the Financial Industry since 2006. Our 5-star Google reviews reflect the excellent customer experience we promise — making your home loan journey positive, stress-free, and rewarding. At Platinum Mortgages, our clients are the reason we exist — so you can be confident every step is guided by genuine care and expertise.
