Property

Investors and first time buyers in ‘quiet battle' for property

Property investors are back in the market and doing battle with first home buyers for properties at the lower end of the market, according to First National general manager John Stewart.

Tuesday, July 05th 2011

He said he was "definitely hearing that investors are back, no question of that, and they have been for some time."

"If you look at our monthly surveys for the last five months, we would be saying the same thing insistently, that there is a quiet battle going on between first home owners or low cost family home owners and investors. It seems to be around 75-25% in those lower end markets, 75% is the new home owner, 25% is the investor, and that's really because the new home owner is very vigorous at the moment."

The First National June survey found buyers taking advantage of attractive interest rates, with cheap houses with renovation potential, houses targeted at first time buyers and entry-level family homes ranking as the fastest sellers for the majority of First National agencies.

Low mortgage rates presently offered by lenders are regarded by 50% of respondents as the catalyst for the sales and First National offices reported bargain hunters in the market.

Stewart said this month's survey saw a continuation of a trend for first time buyers to be demonstrating increased confidence that now is a good time to buy.

"First home buyers realise this is their chance. In most regions, prices have bottomed out and there are more and more multi offers. The best homes - those that are well presented and well priced - are being cherry picked," he said.

He did however suggest caution on the survey finding that investor activity has increased notably in the upper South Island.

"That's where the volume was in June 2011. [But] it's noticeable everywhere."

He also predicated as lower end properties get snapped up, there would be more temporary or casual rental properties taken off the market as people unwilling to sell for a lower price believe now may be a better time to sell.

"The trickle up effect, we'll end up with those that sold the low end houses moving up in the market, what I also think will happen is we're going to see a lot of those casual rentals, three and four bedroom homes, brick and tile, built in the last five years which people can't afford to stay in, they've had to shift, couldn't sell them so they've rented them out casually. They may see the market moving and we could see a flood of middle market, recent rentals on the casual market becoming saleable homes again."

 

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.