What's happening in Whitianga property – August Market Update

Is property still a good investment?

Those investors with funds available may have looked at the minimal 12 – 24 month bank interest rate returns, and can be forgiven for thinking “ok, where else can I build some equity?” or, as economist Tony Alexander recently put it “is this as good as it gets?”

The short answer is yes, it is as good as it gets at the minute, so many investors are turning their attention back to the property market. Without question, property is a superior investment. 

A property investment will increase in value over time and depending upon what you purchase, it can be a passive income through renting as well as the capital gain.

Our tip is to build a relationship with a real estate agent you trust as they are the experts and have daily access to new property listings and they will be your eyes and ears on the ground. 

August Market Update 

Evan Kaska of Vega Lend Ltd, Bayleys preferred finance business advisor, gives an update on the current market. Disclaimer: This update is not intended as investment advice and every attempt was made to ensure accuracy at the time of writing.

Is a recession looming?

The US is now supposedly in a ‘soft recession’. So, what is a recession? Technically, a recession is a decline in economic activity over two quarters, which the US have just had. Naturally, being the US, the Democrats and the Republicans are arguing over the very same definition, with each offering a different interpretation, seeking a political advantage.

Closer to home, the question is - will we see a recession in NZ anytime soon? According to Evan it is potentially, but if anything it will be a ‘soft recession’ and nothing like the usual boom-bust pattern most associate recessions with. Certainly, it is unlikely we’ll experience anything akin to the global economic crisis we saw in 2008.  

Who’s buying houses?

We’re starting to see property investors coming back to the market. They are starting to get used to the government’s ‘healthy homes standards’ and higher interest rates. There are still some great deals to be had for investors.

Bayleys Whitianga statistics show that nearly 80% of our buyers are out-of-towners, which supports our strong belief in supporting listings with well targeted marketing programmes to reach these prospective buyers. We’re also seeing first home buyers trying to pounce before the newly opened New Zealand borders create more demand. 

Both investors and first home buyers come with their own challenges. Investors require more than 40% equity in a property. 

Interest rates

Economists suggest that fixed rates and the floating rate have a little higher to go before they plateau. This could be toward the end of the year. Economists suggest the sweet spot for a fixed rate right now would be a 12 month rate.

Information for buying or selling property in Whitianga

If you’d like to discuss or have questions about buying, selling or investing in property in Whitianga then please contact Neill Fawcett or Alana Baker. More about them can be found on their business page linked below.

Contributors – Alana Baker (Left) and Neill Fawcett (Right)

Showcasing your Whitianga waterfront property

We truly understand the lure of a waterfront position and appreciate the real emotions when it’s time to sell your property, located close to the sea, harbour lake or river. Many of which have been in family ownership for many years.

The Bayleys team of proven waterfront specialists will cast your waterfront property out to discerning buyers, reel in the interest and land the best results. The great news is, the 28th Edition of the Bayleys flagship, annual residential portfolio Waterfront is being collated now, so you have the perfect opportunity to showcase your waterfront property to a discerning market.

For each of the last 27 years, the portfolio, which is unique to Bayleys, has helped champion the waterfront market for vendors and to provide them with the perfect environment to truly expose their fabulous waterfront properties.

So what classifies as waterfront property?

A property is classified as ‘waterfront’ when there is no private land between the property and the water. A reserve is okay, but being ‘one-back’ is not.

And, ‘absolute waterfront’, is where there is no road, or public reserve between the property and its access to the beach or water.

If you think your property may qualify as waterfront and are thinking of selling, call us now and let’s get planning to showcase your property in Bayleys Waterfront magazine.