LookingtoMoveHome?Why NowMightBetheRightTime

If you re considering moving home, either to upsize or downsize, or you’re considering buying a second home, the current New Zealand housing market may present some opportunities. With house prices stabilising, changes to LVR (Loan to Value Ratio) for investors, steady unemployment rates,andanabsenceofforeignbuyersinthemarket,nowmay be the right time for you to move home. Find out more and get our tips on preparing to sell your existing home to buy a new one.

HousePricesAreRelativelyStable

A key factor for both buyers and sellers of property in New Zealand is the relative stability of house prices. While the propertymarkethasseenseveralyears’worthoffluctuations–in particular, a steep rise in prices following COVID – recent trends indicate a levelling off of house prices, providing a more predictable and manageable environment for both buyers and sellers.

LVRChangesForInvestors

Homeownerslooking to grow a property portfolio by investing in a second home, may find recent changes to LVR (loan to value) forinvestors makeitmorefeasibletoenterthemarketorexpand their portfolio. LVR restrictions limit the amount of finance investorscanobtainwhenbuyinginvestmentproperty.However, from 1 June 2023, LVR restrictions have eased slightly, with potentiallymorefinancingoptionsopeningup.

UnemploymentRemainsStable

An important factor contributing to a positive outlook for the housing market is the stable unemployment rate, which remained at 3.4 per cent in the March 2023 quarter, unchanged from last quarter, according to figures by Stats NZ. Employment figures play a key role in the real estate market, as a homeowner’s ability to buy property is closely linked to their employment status and income level. With a stable unemployment environment, more homeowners may be in a betterpositiontobuyafirsthomeorbuyanewhome.

ForeignBuyersHaveNotEnteredTheMarket

In previous years, the New Zealand property market experienced significant interest from foreign buyers, but Government policies currently restrict or limit overseas investment in residential property. As a result, the market ismore focused on local buyers, potentially reducing competition and providing more opportunitiesforKiwistofindtheirdreamhomes.

TipsForPreparingToSellAndBuyANewHome

Here are our tips to help you prepare to sell your existing home, andbuyanewhomeorinvestmentproperty: Evaluate your finances: Working within your budget, conducta thorough assessment of your financial situation and the potential cost of moving. Factor in things like removal costs, legal fees, mortgage break fees (if applicable), and any other coststhatmaybeincurredwhensellingandbuying.

Engage a real estate agent: Hiring a real estate agent who understands the local market can be invaluable. A real estate agent can help you navigate the selling process – including pricing your property competitively, marketing it to maximise exposure,andstagingittoshowcaseitatitsbest.

Get your home market ready: To maximise its appeal for potential buyers, address any necessary repairs or maintenance tasks, and consider having your home staged to sell. A wellpresented home often demands a higher sale price and can attractmorebuyers.

Get pre-approved for a new mortgage: Beforeyoustartlooking for a new home, get mortgage pre-approval. That way you’ll know how much you can spend, and having pre-approved finance can give you a competitive edge when it comes to makinganoffer.

Be flexible and patient: Buying and selling a home can be a complex and unpredictable process. Be prepared to be patient and flexible during negotiations and keep your priorities top of mindwhenmakingimportantdecisions.

MortgageAdviceForBuyingPropertyInNewZealand

If now is the right time to make your move in the New Zealand housing market, get help preparing for the buying and selling process with mortgage advice from the team at Mortgage Express. Whether you’re a first home buyer, an existing homeowner looking to upsize or downsize, or an investor growing a property portfolio, Mortgage Express branded mortgage advisers can provide mortgage advice to assist you on yourhomebuyingjourney.

ThisarticlewasoriginallypublishedontheMortgageExpressBlog10thAugust2023