Timing and strategy in Auckland market?

Our Experts Answer:

Hi Livia, with the expected population growth in South Auckland I think it is fair to say that it should experience roughly the same capital growth as the rest of Auckland across the property cycle (note that different parts of Auckland move at different times). In regards to if it is the right time, I'd firstly state that most economists are sill predicting rises on the back of the supply shortages and increasing migration numbers. Secondly you need to think about why you are investing as if it is a long-term plan then getting in now as long as you stick to your buying rules is as good as any. With the recent LVR changes from the RBNZ this may temporarily remove some first home buyers from the market (I expect a lot will come back with the influx of more non-bank options over the next 12 to 18 months) so with less competition for a period there may be an increased chance to find some good buys. Regards Kris Pedersen