auckland property market

Property market watch: The election, winter and a downturn

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With the election and spring fast approaching, change is in the air … or is it? Graham shares what this all means for the property market.

On 23 September 2017, we’ll discover who we can blame for the next three years. It's also the end of winter, the start of daylight savings, and it’s been eight years since 23 September 2009. 


So, what do we make of all those things? Well, they all have some part to play in what’s going on with the housing market at the moment, and what’s going to happen in the near future.  


Apparently, during every election cycle, Wellingtonians put their plans to buy and sell on hold. It makes sense when you think that the largest Wellington employer, the Government, is in a period of sustained breath-holding while public servants wait to find out who their new boss is. The traditional thought that National makes for a smaller public service and Labour for a larger team obviously impacts public servant’s enthusiasm to change houses and so on.


That’s the election, but let’s combine that with winter and the slowdown that comes with sellers wanting to list in spring when there is more sun. And how about we garnish this discussion by adding in a property cycle that traditionally lasts eight years (and yes, it’s exactly eight years since 2009)—and we find ourselves in a perfect storm.   


But is any of this true? 


Well, on one hand, listings are low but, on the other hand, there are buyers. Well-presented properties continue to sell with good prices, but, at the same time, many buyers remain frustrated. So, much of it becomes a self-fulfilling cycle/prophecy. 


It’s certainly a great time to buy; the banks are a little hard work at the moment but most borrowers are being put off by the negative media spin as opposed to banks saying no. If you know someone who is waiting for the great property price slump tell them to wake up. It isn't about to happen. 


The lead up to 23 September is certainly going to be a great watch. 


Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.



How to Nag Your Mortgage Broker

Hayden Shearman is one of 1000s trying to buy into the Auckland property market. He shares his experiences on how he has made the process more bearable.


My wife and I are hoping to become new homeowners. The trouble is that we live in Auckland. Gulp.


We’re staring down the barrel of, not only a hefty mortgage with hefty repayments, but also a market that seems to be doing everything it can to keep us out of it. So this is why it’s been so crucial for us to have a Velocity Financial mortgage adviser batting on our team, doing a Brendon McCullum or us, knocking a few sixes and digging out a few swinging yorkers.


At the end of last year we teamed up with a Velocity Financial adviser to get pre-approved so we could put our best foot forward when it came to putting down offers and tenders. Over the past few months, while banks have introduce new lending restrictions and property prices have gone up by the minute, our mortgage adviser has guided us through everything from paper work to tender strategies. He’s been crucial to us maintaining sanity and having the courage to keep searching and bidding.


To get us rolling, our adviser dealt with an avalanche of complicated accounts from multiple income streams (oh, the joys of being self-employed and having a less than ideal previous 12 months). He had to work with various bank departments (business and personal) to get our application over the line and even fast tracked our preapprovals on several occasions so we were ready to go to auction with the support of our bank.


As it’s turned out, we’ve come painfully close in a couple of bids and woefully short in more than I can count. But Velocity has kept us in the game and I’m sure that a window into this rampant property market will pop up for us soon.


So, to finish up, I thought I’d share three quick tips that particularly helped us make the most of our Velocity Financial mortgage broker. Some ideas on how you might go about nagging your broker effectively:


1) Treat them as your translator: Real estate agents, banks, lawyers—they all have their own language and jargon, it’s okay to ask your mortgage broker to interpret all the legalese.


2) Ask questions: If you’re an auction- or tender-virgin like I was, it’s important to have someone you can trust to give you sound advice and equip you with a game plan.


3) Use the help videos: Finding all the bank statements and files for a mortgage application can be like pulling teeth. I found the instruction videos for downloading statements for various banks super helpful, especially when you belong to five different banks as I do!


Guest blog written by Hayden Shearman, Velocity Financial client.