House Prices

Gazing into the real estate crystal ball - Mary Holm

Q. I am considering property investment. However, I have been watching the market from the middle of last year, and the prices are just too high!

I would like some advice about investing in areas like Howick, Flatbush and Richmond Park, because the prices in those areas aren't so high.

Is the market going down soon? If yes, how much will it go down - 10 per cent? 2

Tuesday, May 11th 2004

0 per cent?

A. Nobody knows. That's the point really.

The main reason that investments with higher returns, such as shares and property, get those higher returns is because they are riskier than term deposits and the like.

Part of that risk is that we can't tell, in advance, what prices will do.

Nevertheless, economists are often prepared to have a go at property forecasts. BNZ chief economist Tony Alexander, for instance, says: "I think we still have a wee bit of upside left before a minor price correction starts later this year."

How big is minor? He expects average prices to fall about 5 per cent "from some point in the middle of this year to some point in 2005".

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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