Why is now a great time to buy?

In the relatively uncertain times we live in, regarding investing in property, we remind our buyers of some old ‘property adages’ such as, “You don’t wait to buy property; you buy property and wait!” or “Be fearful when others are greedy and greedy when others are fearful.” I appreciate there is a lot of ‘noise’ in the media at the moment, however now is a great time to buy an investment property…but not just any old property!

What are some of the current negative buzz words? Market uncertainty, abnormal conditions, price instability…

One of the big things driving some of the uncertainty is interest rates.  How high will they go and how fast?  John Bolton from Squirrel Mortgage wrote a great blog on this a couple of months ago. He shares his informed opinion as to where he sees interest rates peaking, and what that might mean for the property market. In short, he suggests they may peak in the mid-5%’s. There might be a short period when they hit the 6%’s but people shouldn’t stress about rates in the 7%’s or 8%’s (like the mid-2000’s) as those types of rates are highly unlikely.

Similarly, independent economist Tony Alexander wrote an article for NZ Herald’s OneRoof outlining six key reasons he thinks that there may well be capital growth in residential property of 5% – 10% next year!

So, what does this mean for enable.me clients thinking about investing?

• Certainty will likely creep back to the market sooner than you think
• Interest rates will normalise at lower rates than most people fear
• Prices may stabilise and increase as soon as early next year!

Remember, Momentum Realty specialise in selling new build properties off the plans so you can secure your investment this month, and then sit back and settle next year when things are looking up and buyers are piling back into the market.  

Opinion Piece – Hamish Cowan – General Manager – Momentum Realty