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It is always difficult to predict the next twelve months but some trends are starting to emerge and some earlier predictions are coming true.
We believe house prices, in the main centres, will continue to appreciate, especially Auckland which has already started to occur. This is due both to supply and demand. There are less new dwellings becoming available as there are fewer being built (especially in the apartment market), demand is increasing due to higher immigration figures, more Kiwis returning home and a natural population increase.
Interest rates will go up but in the second part of the year only as the Reserve Bank honors it’s commitment to the nation when it said it would keep rates low. The amount they go up all depends on the recovery happening, how strong it is and if unemployment is starting to fall.
Finance will be difficult to obtain for self employed, businesses and construction projects due to the demise of virtually all second tier lenders. This is a serious issue for the country and will hinder our future growth.
Each month the international credit crisis moves further into the background and hopefully next year it can be consigned to part of global economic history
As it is early in the year alot of finance companies have funds to place in the property market. There are still alot of forced sales going to happen this year as alot of loans to finance companies are expiring, so if the borrower can't refinance or sell the finance companies will force the sales.
Do you have a finance company loan that you need to refinance?
What the first thing you need to do is get an updated registered valuation on your property as it is needed to get a loan approval. Talk to Kent Finance Ltd about your situation so we can structure a loan to suit your requirements.
Ph 0800 80 90 60