A Place in the Sun: New Zealand house prices versus overseas

There is a programme on TV which I like to watch called “Place In The Sun”. There are various versions of it but the central idea is that average English people have decided they want a second home for holiday purposes located in a sunny place such as Spain or Portugal. They get taken through five properties and choose which one they like the most and sometimes make an offer and end up with an agreement on camera. Continue reading…

As low as they’ll go: Interest rates and Auckland’s housing market

The Reserve Bank cut its official cash rate by 0.25% on December 10 so it is now back where it was in March last year before 1% worth of increases to fight expected inflation. The inflation never came. In fact rather than reaching a predicted 1.6% inflation fell away to just 0.4% courtesy of a firm NZ dollar, falling fuel prices, and factors unexpected by the Reserve Bank. Continue reading…

Why property investors should keep an eye on transport developments

I finished last month’s housing blog by noting that if Auckland’s pace of house price rises was not sustainably slowing down then the Reserve Bank would probably take the 30% deposit requirement for investment purchases to 50% or 75%. This probably won’t be necessary because the pace of price inflation has slowed to 3.8% in the three months to October from 6.1% in the three months to July and 8% in the three months to August. Continue reading…

Get smart with interest

What is interest?

Whenever you hear people talking about home loans, the subject of interest rates is never far behind. And with good reason — the interest rate is essentially the price at which a bank charges you for the loan. It varies over time as it rides the fluctuations of the wider, global economy, and plays a huge part in how much your home loan will cost over the years. Continue reading…