Market still slow, but rents holding

However, REINZ says median house prices “are holding their value to a reasonable degree” and according to Department of Building and Housing figures rents across the country appear to be remaining steady. Information from the Department’s Tenancy Services Centre shows the median rent for a three bedroom house for example has remained at $320 per week for many months.

The fact that interest rates are falling is also good news for property investors.

10 Reasons to Buy Now

• There is a choice of excellent property available.  Increasing competition among buyers will reduce available stock.
• Building consent numbers have fallen by up to 30-33 per cent.  A shortage of available homes will start to become apparent in 2009.
• Any new home to be constructed must be more expensive.  Falling dollar will increase costs of imported content, a number of builders have left, or are leaving, the industry.
• Investors have been disposing of rental properties leading to shortage of better quality rental homes.   Inevitably rents will rise.
• Falling interest rates together with tax cuts, have increased the affordability of home ownership.  Buyers with good credit records and payment capacity are still able to secure low deposit finance.
• Interest rates have dropped, further reductions are expected, increasing affordability.
• First and second home buyers have an opportunity now to move in the market at favourable cost.  This may be shortlived.
• The real estate market has not imploded in the current financial upset.  Contrary to popular expectation, prices have held steady in the face of negative media.
• Vendors of solid family homes in good neighbourhoods have largely avoided forced sales, protecting value.   Buyers can enjoy the security of an orderly market.
• Bricks and mortar have again proven to be a safe investment haven. In time prices will inevitably rise, in the present buyers enjoy life in a property they enjoy.