There has been one positive change recently that is worth mentioning. According to BNZ’s Tony Alexander “Power now lies with young potential home buyers in the residential property market in Auckland, and perhaps 12-18 months from now in many other parts of the country once they complete their equilibrium price adjustments. This is the market state which young buyers have been hoping for since they scurried back into the market with every man and his dog in 2012. And if and when I believe the 20% minimum deposit requirement gets cut to 15%, those who have done their work will be well positioned to secure a home”.
So despite the many policy changes which have hit the back pockets of property investors, we are all pleased to see that first home buyers are being given a better chance of securing that precious first home.
It’s time for FHBs to get out there and look for houses. Search the streets in the areas you like, get information on all of the property for sale. Go to open homes, sit in on auctions, speak to agents. Get to know what your money will buy in a specific area and be ready to make an offer when the LVR is reduced for FHBs later in the year.