Property

Mortgagee sales continue to stay high

Mortgagee sale numbers continue to remain high at the moment, and there are now more home owners ending up with forced sales as opposed to property investors.

Sunday, August 08th 2010

Terralink's data shows that the number of registered mortgagee sales increased from 246 in April to 264 in May.

Terralink managing director Mike Donald says there has been a significant change in the type of property owners who are being forced to sell.

"Not only is there an increase in the number of mortgagee sales of properties owned by individuals rather than companies or mulitple owners, but more and more of those individuals are losing their only property - and more than likely it's their family home.

"We all thought last year was a bad year for mortgagee sales when we reached record high numbers. Most of those were property investors who had over-extended themselves during the property boom. This year the pain has shifted to ordinary New Zealand families," Mr Donald says.

In May 2009 just under 50% of mortgagee sales were for properties owned by an individual. A year later that number has increased to 62%, and one in five of those forced sales was held by an individual who only owned one property.

Donald says property owners from the Bay of Plenty, Waikato and Manawatu were hit the hardest in May.

"There were 31 mortgagee sales, more than one a day in the Bay of Plenty - up from 15 the month before. In Manawatu there were 21 forced sales, compared to 12 the month before. In the Waikato there were 51 forced sales in May, up from 28 in April.

"It isn't just the main centres that are being affected, times are tough in the regions too."

Donald says mortgagee sales are usually the end result of many months of financial hardship for the property owner. He says the pressure on property owners is likely to continue for some time yet.

 

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

More Stories

Support for regulation

Monday, March 18th 2024

Support for regulation

REINZ has emphasised the need for property management regulation to Parliament’s Social Services and Community Committee.

A better investment market

Thursday, March 14th 2024

A better investment market

“Reinstatement of interest deductibility starting from the new tax year on 1 April brings property investors back in line with every other business in the country, where interest costs are a legitimate deductible expense," Tim Horsbrugh, New Zealand Property Investors Federation (NZPIF) executive committee member says.

[OPINION] Recessionary times

Thursday, March 14th 2024

[OPINION] Recessionary times

It is not the best out there for many businesses and property sector people. Sales are down across the board, our clients’ confidence is falling, and there is a lot of uncertainty.

Interest rate expectations: It’s not over yet

Thursday, March 07th 2024

Interest rate expectations: It’s not over yet

Most Kiwis think interest rate increases have peaked.