April 20, 2022
Lance Shearman
All Blogs

Mortgages - Get in the game to get lucky

‘Believe it or not, we’ve got more listings than billboards’

After driving past a massive billboard, my 9-year-old daughter asked me, “What are listings?"

I explained that there are companies that have a list of houses that are for sale for people to buy, and these are called listings. My 6-year-old son then got involved and said, “There are a lot of houses for sale at the moment, which is great, so now people will have places to live”. I then continued to impress them with my economic state of the nation, as it pertained to the housing market. They then gave their commentary on how I should just turn the music up and focus on the road.

So, are there more houses than billboards? What is happening with the house prices? With the banks tightening how they are lending money, are people really going to have places to live?


The one that got away

For the last number of years, the house prices had a swell of excitement as they increased at quite a rate. This feeling was then taken over by panic as they increase to such a level that it seemed only people who made a living selling crude oil had the cash to actually acquire one. So, the idea of people buying their first home, or stepping up into a family home , rode off into the sunset and slipped through many people’s fingers.


Plenty more fish in the sea

House prices are no longer exploding, and far less people are attending open homes. There are several reasons for this. Interest rates are going up, changes to the CCCFA meant that banks tightened up on their lending policies, and inflation is hitting new highs. There are also more properties for sale, partly because they are staying on the market for longer as people negotiate their offers, or they simply did not sell immediately. Just over 4 weeks ago there were approximately 600 more listings than the same time the year before. So many fish!

Less competition, conditional offers and the ability to in some cases even offer subject to the sale of your own property is a huge opportunity when looking to purchase. This also reduces the risk as you now can take your time to complete your due diligence on what you are looking to buy. So, if you can manage to keep focused on the goal of house buying, less focused on the doom and gloom from the media, then as far as gaining a successful result on a property you are offering on, there has not been a better time in years.


 Banks have now ‘friend zoned’ us!

Unfortunately, Banks have changed their view as to whether we are a good candidate for along-term relationship. But is there any way we can look more attractive to them and try to win them back?      

Some people simply believe that banks will not look favourably on lending them money, so they forget about property until they hear from the media that the market and banks are going to look at them again. The truth is, everyone’s circumstances are different. A number of people I am working with are still able to gain lending to the level required to achieve what they are after.

Yes, there is no doubt that banks are restricting lending, but you do not know unless you run the numbers, you may be pleasantly surprised.

Every bank has some subtle differences that could benefit you, and they are also making several changes each month that may be favourable to you. My advice is this: Find out how banks view you and your financial situation, and get a second opinion (or the first).


You need to get up to get down

Even when things seem unlikely, the stars can align, and opportunity is out there. However, it does not happen without getting in the game. Start by getting some numbers, what can you truly borrow from the bank, or what do I need to change on the inside of my accounts, or some unhelpful habits of spending that we need to work on.

Then grab your phone and start swiping on some properties you are interested in, lock in some dates to go to some open homes, who knows, you just might get lucky.


About Lance


Hi, I’m Lance a Financial Adviser here at Velocity Financial. People in Finance love to make it all seem too complex. I see my role as removing these barriers, opening your opportunities, and connecting you with the sharpest and most helpful professionals Wellington has to offer. I am interested in people and enjoy being part of key (and often the most stressful) stages in their lives. From my background in heading up large social development projects, finding finance and resource to bring about change for some of our most vulnerable New Zealanders, to my role as a marriage celebrant helping organise one of the most dramatic, stressful, wonderful, precious days of people’s lives. Now as a Financial Adviser I'm able to help people reach their financial goals and help provide security by insuring them against life's challenging times. I love being active, boxing, running, surfing, basically if there is a chance of some form of activity I am on board. Music is extremely important to me, and I have been privileged to travel around many parts of the world playing drums.

Disclaimer: Lance Shearman (FSP431426) is a Financial Adviser with Velocity Financial(FSP95466). No investment decision should be taken based on the information in this blog alone. Please see Lance’s disclosure statement on our website.

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