April 21, 2017
According to QV.co.nz, the Average Value in March 2017 is higher comparing to the Average Value in March 2016. In terms of the whole Auckland Area, the Average Value is now $1,045,365 and was $931,061 at the same period last year.
It is never too late to buy a house, no matter it is for investment or for your own home.
Regarding to Stuff.co.nz, the typical value of a first home on Auckland’s North Shore is now $777,000. In Hamilton, it is $469,750, in Wellington, $592,300 and Christchurch $382,250.
That means, even with a 20 per cent deposit, buyers are taking on mortgages of hundreds of thousands of dollars.
If you are thinking about buying a house, the amount of debt you will have to take on is probably enough to keep you up at night.
Stick to What You can safely borrow:
There is an argument for stretching yourself when it comes to buying a first home, but it is important to be realistic.
Is your income reliable? Are you circumstances likely to change- will you want any time off next few years? How would you manage if your mortgage payments increased?
Most banks check borrowers’ ability to service a loan by looking at how they could cope with interest rates in the mod-7 percent range.
Before you agree to anything, run the numbers through a calculator. Look at what your repayments will be at current rates, what they would be at 7 per cent and what they would increase to if rates hit 10 percent. At the moment that seems unlikely, but double-digit interest rates were common as little as 10 years ago.
If the bank is offering you a larger loan than you are comfortable with, don’t take it.
What you need to do before you buy a house?
Call Metro NZ Property Management through 0800 Metro NZ for free investment advice!
Or Email to Office@metronz.co.nz if you have any enquiry!
Reference List:
Susan Edmunds, April 2017, Four ways to take the risk out of buying a house, retrieve from: stuff.co.nz.
QV.CO.NZ, March 2017, Residential House Values, Retrieve from www.qv.co.nz.
