Posts tagged olly newland
Seasoned property investor warning for property investors...

Olly Newland warns residential property investors not to be too reliant on capital gains as the current residential property market had the same smell about it as previous booms, before they turned into busts

That could see thousands of properties coming on to the market at the same time, with a shrinking pool of buyers.

Recent REINZ sales statistics showed that investors were buying 80% of the properties sold in South Auckland and 41% of sales across the whole of Auckland.

He says many investors he consults, have paid so much for their properties that they were having to keep shovelling money into them to keep them afloat, because the rental income wasn't sufficient to cover the outgoing like rates, insurance and maintenance.

And when prices stop going up, investors may decide to lock in the capital gains that had already been made and cash up rather than being left with having to collect rents, maintain their properties and deal with changes in tenants, without the benefit of capital gains.

Source

What is happening in the Auckland market?

Realestate.co.nz just revealed the latest average national asking price for homes peaked to $511,421 last month, up from $498,471 in January. The Auckland market continues to show growth, ranking No 1 again nationally for the highest average asking price of $764,000.

Property commentator Olly Newland said he was surprised at the pace of the latest property surge. "It makes me wonder where it's going to end," he said. For first-home owners looking to break into the Auckland market, it is getting harder for them to break into the Auckland market.

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The latest  QV statistics highlight over the past three months; Manukau North-West values rose 4.9%; Manukau East was up 4.7% and Manukau Central was up 4.0% over the same period.

The new build market in NZ is in high demand, particularly amongst first home buyers, as the LVR requirement for a 20% deposit does not apply to “turn key” home and land packages - making it easier to secure finance.

The listings shortage has eased slightly as more homes have come onto the market during February, however sales and mortgage approvals are up since January.

The banks are being very competitive with their interest rates which adds fuel to the heated property market. For the latest in mortgage rates across the board, click here