Question from Sally updated on 27th July 2020:
Until recently, I was thinking of buying an investment property in the near future. But now, with everything that is happening with coronavirus, I'm not sure that it's a good idea. But I understand house prices might go down a bit now. What do you think is likely to happen with the property market going forward? In a few months’ time, could it be a good time to buy a property?
Our expert Kris Pedersen responded:
There is probably going to be some short-term price decreases. That’s because of the flow on effect to the overall economy, especially from the lockdown period, and then how hard certain sectors – like tourism - feel this and the time it will then take for them to get back on their feet.
In May I read an economist’s opinion and he expects New Zealand to have its worst ever economic quarter coming up. But the key point was that he also believes that at some point in the following 12 months we will have our best ever quarter as the economy rebounds. There is no need to rush in and buy at present. Instead I would encourage you to get yourself into a position where you can purchase as at some stage there are going to be good opportunities that will present themselves.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz