infonews.co.nz
INDEX
BUSINESS

Property Ventures Answers the Question, "Should I Buy Now?"

Tuesday 17 October 2017, 2:20PM

By Beckie Wright

190 views

In a recent blog, Mark Honeybone, Co-founder and owner of Property Ventures, addresses the question on every investor’s lips, “Should I buy now?” Mark goes on to say, “The media is all over the place at the moment. The day I am writing this article, Barfoot figures in Auckland show drops in ‘sale prices’ and increases in ‘days to sell’ in many areas around Auckland and state that the medium price is the same as 12 months ago. Of course the Herald has jumped on the bandwagon saying that Auckland is again behind the rest of the country.”

Mark goes on to explain that this last statement is probably correct, it happens about once every ten years, and when that happens it is time to be very careful and cautious when purchasing. As far as the Auckland market being the same as 12 months ago, the National Party will be pleased, as that's what they have been trying to achieve for a few years.

In Mark’s opinion the two main drivers have been the very difficult lending rules put on by the banks, and of course something dear to all our investment hearts, the Loan to Value Ratio (LVR) of 40% that came in just on a year ago. That along with normal slower winter sales but more to the point the upcoming election all puts pressure on the market. A year ago as soon as the new LVR (40% deposit required for investors) rules were announced Mark said watch out for high investor areas around Auckland in particular and other parts of the country, some of these areas will drop.

Mark goes on, “We certainly saw this within my own business in Hamilton where Auckland investors almost overnight stopped buying investment properties there. Other areas in Auckland seemed to remain fairly strong, good areas in good locations with quality houses. We just sold an investment property for asking price in Sandringham for over $2 million.”

Property Ventures Real Estate Limited is an agency under the REAA 2008, but they are a Real Estate Agency with a difference. They run a licensed finders service called a 1 on 1 Buyers Agency Service where they work for the Buyer, and they have other property investors whom they try and find properties for, so to find out more about property investment, property vendors and selling property please go to http://www.propertyventures.co.nz .