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Will There Be A Christmas For The Real Estate Industry

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Contributor:
Brian Dalley
Brian Dalley

For years economists and government have been banging on about the amount of debt per head in this country without really offering a solution and consequently the economy came tumbling down.

Again cracks a starting to appear as people have taken heed and are now keeping their hands in their pockets.

Surely this is a good thing one might say as cash is king. But is it?

There must be a balance between debt and expenditure for economies and individuals to benefit. Should the pendulum only swing in one direction, as it appears to be doing, economies become fragile.

No I am not suggesting a mad rush on property or Christmas spending for that matter but there must be a change in mind-set or a move towards an increase in spending or the market will stall and that could be disastrous.

I feel a more balanced view is called for with an emphasis on budgeting rather than solely on debt reduction.

Personally I view life as a journey and like to enjoy it along the way rather than scrimping and saving and hoping I will be there to enjoy it at the end.

There no doubt will be gifts for those seeking to enter or trade in the real estate market over the holiday and summer months as there are some really great opportunities out there, and with interest rates at a historic low, coupled with banks egger to loan money again, it may very well be a golden opportunity for a little self indulgence.

Should people not loosen their purse strings a little, 2011 will get off to a rocky start with the likelihood of job losses.

On the flip side, should spending increase to reasonable levels the economy will be in better shape which will benefit the majority; however one should be aware that will trigger a rise in interest rates.

So if you do decide to treat yourself and I sincerely hope you do, remember to factor in a rate increase or better still, think seriously about fixing your rate if an increase in interest rates would adversely affect your life style.

The worst thing anyone can do is bury their head in the sand and wait until the world economy rights its self.

One, your head could be under for a very long time which would most likely result in missed opportunities and most importantly, the chance to add more colour to your journey.

This year we are likely to see more people holidaying at home opposed to travelling to offshore destinations so you could expect to see more potential buyers checking out your area.

So yes there will be a Christmas for the Real Estate Industry and you are all invited but you must get out there and take action to be able to take home the presents.

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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