Corelogic’s head of research Mike Goodall thinks the property market has hit bottom. He points to credit flows which show that both first homes buyers and investors have both increased their borrowing for property over 2018. He also mentions the confidence in the market driven by a strong labour market, forecasted GDP growth, low interest rates and a possible relaxation of LVR limits – all which could add to market demand.
I think people are adjusting to the ‘new normal’ after the flurry of new regulations proposed by the Labour government, some which will be introduced, others likely not.
For investors who are still buying our property nothing much has changed really, some added costs and administration hassles, but the returns are still there in property. They can’t get a decent return from term deposits. The sharemarket looks risky after an extended run, and it doesn’t provide the leverage possible with property.
Property is still looking like the best bet for wealth creation. Property is also offering great returns, if designed correctly. We have property available with 6.8% and 7.5% gross yields in prime locations. Many of our investors have achieved 50% capital growth over the past 4 years alone, with rents rising 15% at the same time. While I think the next 2-3 years will see more subdued capital growth, I think rents will grow more quickly than the past 2-3 years.
If you’d like to find out more, please call us on 07 823 2525 and ask for Ryan. Or email us, info@assuredproperty.co.nz
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