Buying Property in New Zealand
What to expect from the property purchase process in New Zealand...
Buying a house in New Zealand is usually a sound investment and preferable to renting in the long term. Although higher deposits are demanded by lenders than previously, interest rates fell to 2.5 percent in April 2009 and mortgages are now more affordable than ever. House prices rose 50 percent in the ’90s and doubled between 2002 and 2007 in most areas. However, after frantic activity in the first half of 2007, the market slowed considerably on the back of interest rate rises and amid fears that houses were over-valued (by up to 50 percent according to some reports).
It’s important to note that most New Zealanders buy property as a principal home rather than as an investment, and there’s less speculative buying than in some countries (such as the UK and USA). However, as in many other countries, property is the favoured investment for New Zealanders with cash to spare, although you shouldn’t expect to get rich quick when buying a home in New Zealand. It’s true that in recent years there have been cases of shrewd entrepreneurs making a killing by snapping up derelict ocean-front properties for renovation or buying townhouses in the ‘wrong’ districts of Auckland or Wellington, which then became ‘yuppified’ so that properties rocketed in value. However, these conditions are rare and you can just as easily lose money as make it by speculating (particularly in the current uncertain property market).
There are a number of websites offering comprehensive advice to homebuyers, including I Want a Home, New Zealand property Index, Quotable Value, New Zealand’s largest valuation and property information company, and Terranet. In addition to estate agents, property is advertised for sale on numerous websites, including:
- www.4privatesale.co.nz
- www.homesell.co.nz
- www.nz.open2view.com
- www.propertypress.co.nz
- www.trademe.co.nz/trademe-property
- www.realestate.co.nz (the official website of the New Zealand real estate industry)
David Hampshire (Available as eBook or order from Amazon)
Published by Survival Books Ltd, Survival Books
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