Low home loan rates boost New Zealand property investment
Low interest rates on home loans are boosting the popularity of property investment in New Zealand.
A recent survey conducted by a leading NZ mortgage brokerage suggests that the present low mortgage interest rates are boosting the demand for residential property across the country. More than 55 per cent of respondents said the rates had made home purchase more attractive, with almost two thirds adding that the New Zealand banking community’s attitude to home loads had eased considerably.
The CEO of the mortgage brokerage responsible for the survey, Mike Pero, stated it’s a good time to consider buying a residential property as it’s a buyer’s market at present. He added that banks are aggressively seeking borrowers and those looking to change their lender by offering incentives, cash offers and low rates.
Given the continuing instability in the markets, it seems property investment is suiting the cautious and prudent attitudes of today’s investors, with most believing an upward move to higher interest rates will not take place in the near future. Many home owners have switched from variable rate to fixed rate mortgages over the last several months and are using the saving on their monthly mortgage payments to clear outstanding debts.
Half of those surveyed believe property prices will rise during the next six months, with just under half considering they will remain stable. According to Pero, property investors are not speculators, they’re sensible, conservative and in it for the long run.
The NZD exchange rates on 02/07/2012 were as follows: GBP NZD = 1.9532, EUR NZD = 1.5662, USD NZD = 1.2446, AUD NZD = 1.276, CHF NZD = 1.304, INR NZD = 0.0224, AED NZD = 0.3391, MXN NZD = 0.0934, CAD NZD = 1.2244, ZAR NZD = 0.1526, RUB NZD = 0.0382, . See today's New Zealand Dollar Exchange Rate
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