Credit: Realestate.co.nz

November Market Update

The year is flying by, and the market sure is flying as well.

We saw things alter a little bit last month, the elections threw a little spanner in the works, Spring had Sprung and with it came a good flow of new listings. But, is all well in the land of real estate?

Stock levels are dropping in some area, with some reporting their biggest low in many years, while others see their stock levels rising.

What does the new government mean?

This one is going to cause a few things to happen in the market. Announcements have already been made that they are looking to stop overseas buyers as early as next year! Plans are being put in place to increase protection for renters, increasing the notice time from 42 days up to 90, to remove the “no reason” eviction, and also to increase the bright-line test (capital gains tax) from 2 years up to 5.

Will this new timeline from 42 days up to 90 effect anything? Not really. It means if a landlord is going to look at selling, they will serve notice to their tenants when they go to the market rather than when they sell. What about the bright-line test? It will just change how investors work. Rather than selling and getting bigger nicer rentals, they will have lots of little ones, competing with those first home buyers still.

It will be interesting to see what long term effects (or even short term) these all have. What we do urge you though, is don’t kneejerk react. Chat to professionals (real estate agents, mortgage brokers etc.) it’s free, and get their local take on it.