Seven reasons to buy a home in 2016

Are you a first home buyer or looking for a change in the house you have?  You will have plenty of company, with low interest rates and high immigration keeping home buyer demand high in New Zealand in 2016

Here are a few good reasons why 2016 will be a good time to make your move – for first home buyers and everyone else.

  • low-interest. Apply for a home loan now and you will be seeing some of the lowest rates New Zealand has ever seen.
     
  • Appreciation. Historically, real estate values rise over time, and the spillover of Auckland investors in the regions is pushing values up quickly, particularly in Tauranga, Hamilton, Rotorua, parts of Northland and Wellington. Auckland values are still increasing, though at a slower rate.
     
  • Equity. Rent money is money you never see again. Mortgage payments are part interest, part equity, helping you build wealth. The longer you own the home, the more your wealth can increase.
     
  • Savings. Paying down your mortgage principal each month is a form of forced savings.
     
  • Stability: the landlord can’t end your lease or sell the place out from under you.
     
  • Control over your living space. The home is yours to enjoy. You can have pets, remodel the kitchen, or decorate without worrying about the landlord.
     
  • Reduced competition in Auckland: Investors have lost interest in the Auckland market due to the Government and Reserve Bank interventions in the market. This is especially helpful for first home buyers who no longer need to fight it out with wealthier, cashed up investors.