This week we have seen The Reserve Bank slash the official cash rate (OCR) to ensure the New Zealand public have lower home loan rates and therefore more money in their pockets to spend.
Well that’s what they want to happen anyway!
- But how will Kiwis react?
The rates have only just dropped and the country is still reeling from the recent crackdowns on travel and events etc so nobody has really focused on how the property market will react. There are questions but no answers yet.
- Will the low home loan rates see more first home buyers able to get onto the property ladder?
- Will the low rates see property investors eyeing up more property?
- Will these low mortgage rates see more new homes purchased?
These are all questions that we will need to wait a bit to get answers to.
If circumstances were “normal” then they would be easy questions to answer, but things are not normal and we are not sure when things will settle back into a predictable type environment.
Finance Will Be Key For New Builds
If we want to see more new homes purchased then the banks need to ensure that they do not get too tough on mortgage approvals.
They will obviously have concerns with people involved in certain sectors, but for many people the incomes are safe and with low home loan rates it has become very affordable to buy a new home.
And after all, Kiwis love houses and most have always dreamed of building their own new home.
Contact us to see what you can do.