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Time called on 53-year career P3
Cautious future for real estate By Sue Newman
sue.n@theguardian.co.nz
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First home buyers who have taken a hit to their KiwiSaver accounts might find themselves struggling to scrape together a deposit in the post Covid-19 lockdown housing market, says Murray Young. The Property Brokers agent has been in the business of selling homes for decades and said he’s struggling to envisage the shape the market will take in the coming weeks and months. The only thing certain is that it will be different, but where prices will sit is anyone’s guess, Young said. Wherever prices settled, it would be the first home buyer that would be hardest hit, he said. “It’s going to be a pretty interesting
time when we come out of this. It might just take a wee while to get used to a new norm, to get confidence.” He doesn’t anticipate any significant slump in prices, suggesting the market is more likely to simply go quiet for a time while people assess their options and wait for a little certainty in prices. His team were in touch daily and were also in touch with head office and the general feeling was that people were still feeling positive but were keen to get back to work. Deals could still be done online and sale and purchase agreements prepared, but people would be unable to get a builder’s report or unlikely to get a LIM, he said. Real Estate New Zealand’s Trevor Hurley has a huge rental portfolio, and
said some of his landlords were finding the lockdown pretty tough. “Any properties that were empty will stay empty and some of those owners are getting pretty stressed. “Normally we have properties rented very quickly, but now our hands are tied. We’re doing our best to keep the communication lines open with our tenants and our owners.” A number of landlords had reduced rents during the lockdown for both residential and commercial tenants, to ensure they were not left with vacant properties further down the track, Hurley said.
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