If you or someone you know is about to buy residential property in Auckland you/they will become aware very quickly that the house prices have not yet stabilized, and buying in Auckland will now be a bigger investment than elsewhere especially for younger families and many senior citizens/ elderly
After deciding on the usual issues such as area affordability, school zones and work location, take some time and research to prioritize some of the following points:
- Location in relation to other places such as sports venues, clubs, shops, medical centres
(traffic issues & noise, or handiness to the above)
- Distance to motorways & arterial roads, public transport.
- Airport flight paths, power pylons, industrial buildings (noise /air pollution)
- Local area transport plans for roading / building zone changes.
- Neighbouring property heights, boundaries and potential for redevelopment and building
- Cross Lease properties – check for extensions or garages added on that have not been
registered on both or all titles (additional legal costs could be incurred)
- Methamphetamine is being manufactured in some residential suburbs—if a previously rented property is freshly painted over, the owners have moved out suddenly or you detect strange odours, you can have the property tested for residual chemicals. The cost and delay will far outweigh the huge stress and cost if you move in and discover issues later.
Auckland House Market
The average selling price for the Auckland market is predicted to rise to around $1 million in 2017.
What does this really mean? Essentially there are not enough properties available or on the market for the number of motivated and financially approved buyers, who were being fired up by the fear of not finding a property before the prices increase even further beyond their range prior to April.
(If you are on the move, ensure a meeting with your banker and be “pre-approved” to spend at a certain level so you are not wasting time or being disappointed by missing out)
Interest Rates are still affordable for most buyers 5.3% -6% range. Consider buying in the suburbs previously not considered as a choice, as the more new buyers spread out into the suburbs, so do new refreshed communities form.
In this year 2016 it’s not uncommon in Auckland to expect sales to be in excess of 25% – 30% above the current CV of properties in inner suburbs that buyers are desperate to move to.
Record numbers of bidders at many auctions of desirable properties are still fueling the rush to live in leafy suburbs of Auckland and North Shore. Despite reports of people moving to small towns or hamlets and commuting to Auckland, Hamilton or Manukau, many buyers are still cautious of the impacts that long hours of work and commuting can cause on families and relationships.
Several agents are now promoting properties in far outer suburbs that are affordable for first home buyers, but the compromises require careful research. Is it better to rent and invest in a property in another town to rent out? ( in which case a valuation and building inspection will be essential).
Bookings for our Dwell Healthy Homes house inspections are still running at a high level – always an indication that the savvy buyers are taking the right precautions before purchasing.
There are still too many houses on the market that have serious deficiencies and non compliance even if they look grand or pretty and buyers must do their homework thoroughly to make informed decisions.
It is important to call us early for your discussion or building inspection before auction or in the due diligence period of a purchase offer – last minute rushes put undue pressure on busy agents and inspectors. For best results call soon.