First Home Buyers Weekly Wrap – 4th May 2015
Reserve Bank Governor Graeme Wheeler. Photo / Mark Mitchell
Official Cash Rate remains at 3.5%, KiwiSaver deposit rule change to kick in, NZ’s most underrated suburbs, continued calls for property taxes and more in this week’s First Home Buyers Weekly Wrap.
OCR remains at 3.5% as guidance inclines towards possible easing
The Reserve Bank has opened the door to a cut in the official cash rate, but the conditionality attached suggests any decision to go through with it remains some way off.
As expected, the bank left the OCR on hold at 3.5 per cent and moved its forward guidance from the resolutely neutral – could be either up or down – stance in the March review to one with an easing tilt. Read more
Mortgage war heats up
Homeowners look set to enjoy further interest rate cuts, with a broker tipping historic lows within 12 months.
Banks are fighting a pitched battle for mortgage customers, offering cut-price interest rates to lure new business. But many have shelved cash incentives or offers of free flatscreen televisions and iPads to focus on the most competitive interest-rate deals. Read More
Pinpointing NZ’s most underrated suburbs
When it comes to rising prices, not every area experiences even growth. Every city has a few suburbs which lag behind, then surge ahead. If you can time it right, you can benefit from buying in an underrated suburb before it becomes fashionable and values take a jump.
Westpac’s REDnews spoke to 3 property experts in the main centres and asked them to look at the map and choose their 3 most underrated suburbs. Read More
Tamaki project gets $200M govt loan, mandate to build 7,500 Auckland homes
Tamaki Redevelopment Co, a property development venture between central government and Auckland Council, has been given a $200 million loan and a mandate to build 7,500 homes over 15 years, financed via property sales and rent from former Housing NZ tenants.
Tamaki Redevelopment will redevelop the Housing NZ properties, using the land for higher-density housing of which 2,800 will be subsidised social-housing rentals for tenants assessed by the Ministry of Social Development. The remaining 4,700 could be sold, generating $3.4 billion based on the median Auckland house price of $720,000. Actual prices would be lower, however, as the intention is to develop “affordable” homes within reach of first home buyers. Read More
Home buyers’ new hope
KiwiSaver rule change will free up cash for thousands looking for a first home.
Tens of thousands of first-home buyers stand to benefit from a KiwiSaver change coming into effect next month. Until now, people wanting to use their KiwiSaver savings to buy a first home had to wait until settlement day to access their funds.
Changes last month increased the subsidy for first-home buyers who meet income and house-price caps and use their KiwiSaver funds. Read More
Property tax system working fine – investors
With house prices in Auckland becoming less and less affordable, there have been growing calls for the Government and Reserve Bank to take more action.
The bank has urged the Government to reconsider a capital gains tax, which the Government insists already exists. Andrew King of the New Zealand Property Investors Federation (NZPIF) agrees capital gains taxes are already being paid.
“Most people don’t actually know that if you do trade in property, you do pay tax on those profits, as you should,” he said on TV3’s Paul Henry programme this morning. Watch Video
Education on property taxation required – NZPIF
“An educational campaign on property taxation should be funded with some of the extra money to target residential property speculators the IRD may receive in this year’s budget,” says Andrew King, Executive Officer of the NZ Property Investors’ Federation (NZPIF). Read More
Your credit file tells potential creditors how good or bad a credit risk you are, and also, whether anyone is trying to get credit in your name.
Money only one part of the lesson
The Government has finally accepted that it can’t fix Auckland’s desperate shortage of affordable houses unless it puts taxpayers’ money into building them.
Ministers have been frustrated by the glacially slow pace of affordable housing developments in the city despite the creation of special housing areas in which developers can get speedy resource consents in exchange for promises to build a proportion of affordable housing. Read More
Housing crisis? Innovation in prefab technology can ease the pain
We need affordable homes, and we need them quickly. Why hasn’t the building industry warm up to the innovation available in prefabricated technology as part of their solution? Pure Advantage’s Simon Millar says prefab technology’s time has come. Read More
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