Recommended NZ | Guide to Money | Gimme: Competitions - Giveaways

The Real Estate Market Remains Subdued But For How Long?

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Contributor:
Brian Dalley
Brian Dalley

The weather is changing, the flowers are flourishing, the birds are singing, the sun is putting the spring back into our step. Will this help revitalise the wilting real estate market?

Personally I think it will however, I am not suggesting a frenzy is about to take place amongst buyers and sellers but as awareness to just how good things are increases, there will no doubt be a flutter of activity

Doing a quick ring around the banks it was evident that they are all working on choosing the ‘best or better’ sweetener to lure you - however few where willing to discuss the exact details excluding the National Bank.

The branch I paid a visit to were just in the process of putting up their window displays advising they are now willing to look at home loan applications above 80%. Remember it was just a few months ago and it would not have mattered if you were royalty, they would not loan a cent over 80%.

And, yes there is more, they will give you $1000 towards legal costs. Again, it was only a few weeks ago that I had tried so hard to get a legal contribution for a client but the bank stood firm and wouldn’t budge saying we no longer contribute towards legal’s and it is unlikely we will go down that path again.

How times change.

Talking with their parent bank the ANZ, it sounds very likely that they will follow suit, yet seemed a little put out that they had not yet received their window dressings as had their sister bank.

Kiwibank still had their crude yet very efficient hand written sign positioned in their entranceway proudly displaying the fact they will loan to 95% of the property value something the loans officer went to great extent to point out to me that “the offer is genuine”.

Other lenders haven’t yet become quite as brazen, rather limiting their comments to “we will consider applications from clients with less than 20% deposit”. All the same this is still a far cry from the beginning of the year when they all simply stuck their heads in the sand hoping all would be better when they came up for air.

Not a bad move actually as there was very little else they could do, but there had to come a time when they would run out of air as their lending books shrunk - now is that time.

If banks don’t loan money they won’t make money and it is as simple as that. Sure they could charge more fees but that won’t cut it

It has come crunch time and the lenders need to lend and trust me the fruits of temptation are going to be low hanging this year and in abundance.

But is it a good time to be feasting on the offerings. If you can afford to do so most defiantly go for it, but perhaps wait a few weeks until all the goodies are on display…

Brian Dalley is a former NZMBA Mortgage Broker, Property Investor, and Real Estate Agent with over 15 years experience in the industry. You can read more of his and other professional’s views and opinions on his website www.propertyprofit.co.nz.  

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