New Zealand’s housing market could be in for a shake-up as the Reserve Bank has finally decided to ease its grip on interest rates. After a grueling four-year tightening cycle, the OCR has been slashed by 25 basis points from 5.5 to 5.25%, the news we’ve all been waiting for!
This long-awaited decision comes as a welcome relief for homeowners and property investors who have been battling sky-high mortgage repayments. The major banks, who have been anticipating this move, have swiftly responded by reducing their own lending rates. From ASB’s across-the-board cuts to Kiwibank’s immediate action, it’s clear that the financial institutions are keen to pass on the savings to their customers.
While this is undoubtedly positive news for existing homeowners and investors, the question on everyone’s lips is: how will this impact the housing market? Traditionally, lower interest rates fuel demand as borrowing becomes more affordable. With spring just around the corner, a time when the property market typically heats up, there’s a strong possibility we could see a surge in buyer activity this year.
While the recent OCR cut is undoubtedly a step in the right direction, it’s essential to approach the housing market with caution. Interest rates might be on a downward trend, but it’s crucial to consider your personal financial situation and long-term goals before making any major property decisions.
For those who have been waiting on the sidelines for the right time to buy, this could be your chance. But remember, the landscape has changed. Outdated property advice won’t cut it anymore. Here’s where investing in yourself and your future through property education comes in.
Introducing the Property Workshop: Modern strategies for building wealth (even in today’s market) happening in a few weeks! Tired of the same old property advice? This workshop is designed specifically for the current market, considering the impact of technology, regulations, and economic shifts like the GFC and Covid-19. Learn from a former state house resident who built a $17 million portfolio in just 5 years, and avoid costly mistakes you might otherwise make.
The workshop will cover:
- Properties you should absolutely avoid. As Charlie Munger once said, “The only thing I want to know is where I’m going to die so I never go there.”
- Areas where our clients are buying that have good capital growth,
- Strategies our clients are using to create hundreds of thousands and even millions of dollars in equity.
- Step-by-step on how to purchase your first home
- How to Use a Mortgage Wisely to Build Your Wealth
- 23+ Years of Experience: Benefit from insights honed through the GFC and beyond, and working at a leading NZ bank for 15 years.
Ready to unlock Auckland’s property potential? Don’t miss out! Book your spot at our next Auckland Property Workshop today: CLICK HERE
