Last week, ASB released their quarterly Housing Confidence Survey which revealed the largest drop in buying sentiment since 2012 with 1 in 5 Kiwis feeling now is not the right time to buy, but are they right?
It appears the low sentiment is a combination of increased media hype around high house prices and a hot property market in general. The survey also revealed that most New Zealanders are expecting house prices to rise even further over the next year and that the current interest rates are the lowest they will get before they inevitably rise again.
So, is it a bad time to buy?
In terms of assessing if it is a good or bad time to buy, it’s not really about what’s being displayed in the media, or how a survey reports people are ‘feeling’. It’s about the circumstances of the buyer and what they can afford to buy in the current market. Now is as good a time as any, as long as you are smart about it.
Our advice when buying:
Our advice is always to get a professional to look over your personal circumstances, and control all the aspects you can when buying, such as:
- Have the right mortgage structure to cushion volatility.
- Don’t over commit yourself on borrowing levels.
- Make sure you have a buffer for adversity such as losing your job.
- Find out what the risks are.
- Be prepared to make compromises.
In terms of buying, now is as good as any if the above criteria is met.
Lost, and don’t know where to start? That is where we come in, contact us here