Auckland Prices Increase at Fastest Pace in 11 Years
Year-on-year price growth is now 16.1%.
http://www.nzherald.co.nz/business/n...462255&ref=rss
For the Landlord who has a mortgage, this translates into even greater unrealised percentage growth in equity. That is a good investment performance. Bill English has said that a rental housing warrant of fitness would reduce rental housing supply. If the demand for residential housing by investors were reduced and consequently the pressure on prices alleviated, then surely that would be a good thing. It could mean that potential first home buyers would be less likely to be out-bid by investors. Those successful first home buyers would then mean less demand for rental properties.
Whatever, in the absence of meaningful changes in the housing market, Auckland will continue down the path to have housing owned by fewer yet wealthier overseas and domestic investors, whose heirs will inherit and become landlords, with the rest of the population becoming perpetual tenants. A landed aristocracy and a peasant class in the making if you will. Just like how the old country used to be. Unless there is a big correction round the corner...or, unfortunately less likely, housing developments occur at the level needed to match immigration and population growth.
And now...lower RB interest rates adding fuel to the Auckland property fire...
I would not like to be a potential first home buyer -period - but especially for the next few months. With lower interest rates, will there be even more of a scramble for property by investors before the (albeit token) announced investor requirements come into force? Will the annual price rise kick up a further notch?