The Longer You Wait The Harder It Will Be

The Longer You Wait The Harder It Will Be

2020 is a year like no other and just like when the GFC came and went people recovered, the economy recovered, and investing in property was still the safest place to put your money.

The key is education if you read everything in the media believe half of it and do your own research. Yes there is an economic hit, and over the next couple of years we can look forward to that recovery and by all accounts it's off to a great start.

There has been a noticeable shift in the way companies work with some realising that working from home works for them and helps financially.

Businesses have created new products due to having to diversify to survive. Others have found a new niche market further fueling the economy so this puts us in a great place when our boarders open again.

So what does this mean for property?


So far we haven’t seen a drop in house prices, quite the opposite in fact. With the current job cuts the feeling is that there are not great numbers of current home owners losing employment therefore they are not forced into selling, hence the lack of properties on the market. With interest rates so low and finance deferral options offered by the banks, there is less need, or delayed need, to sell a home.

If unemployment reaches the predicted 10% we may see a rise in houses for sale, but like the economic crisis it is temporary.

When the tsunami of mortgage deferrals that occurred in covid come to maturity we may see a few more houses coming on the market if the job situation hasn’t improved, but it all goes in roundabouts. Not many houses to buy means prices stay up, I predict a little bit of a see saw in the next couple of years but ultimately if you can hang in there or get your claws into a home you will still reap the rewards in a few years time.

You are only going to see the gains if you hold onto a property for a length of time.
Compare the repayments of a modest mortgage to rent. During our first home buyer seminar we hear the current rent is $350 to $650 per week, that’s a $400,000 mortgage and cheaper if it is interest only. Often it sounds scary because the debt is your responsibility but you have to take a little calculated risk to get the rewards.

You might have a house for ten years, ride the ups and downs and make $100,000 in value. This is your nest egg, and for the average kiwi they can’t save that much.

No one can ever ‘time the market’ for a bargain. It is a myth just know that the longer you wait to buy a home, the harder it will be.

Book a Meeting

Sean Zeier
Mortgage Adviser

Phone: 027 566 3309
Email: [email protected]

The Longer You Wait The Harder It Will Be
 
 

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