Ten reasons this property cycle is different to the last


From the latest issue of NZ Property Investor magazine:

  1. Stricter lending criteria by banks makes over-leveraging more difficult.
  2. The Reserve Bank’s LVR changes are also s topping investors from gearing so high.
  3. New Zealand’s economy is fundamentally stronger than at any time during the last property cycle.
  4. Investors tend to have a more cautious attitude to debt after the Global Financial Crisis.
  5. There is less of an incentive to negatively gear properties because of removal of building depreciation and LAQCs.
  6. Investors have more realistic views of capital gains with less buying out of comfort zones.
  7. Auckland’s housing shortage must be addressed and Christchurch must be rebuilt, these are unique drivers to this cycle.
  8. Fewer non-bank lender options are available so the risk of over-gearing is further reduced.
  9. Interest rates are expected to peak lower so risk exposure might not be as bad.
  10. Increased property compliance focus by the IRD is putting off some traders.
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About Peter Griffioen

Peter Griffioen - or simply Griff to those who know him - has an established reputation as a high-producing Harcourts Canterbury salesperson. With a focused approach to customer service you can rest assured that you are in good hands, whether it be a relaxed chat about the state of the market or an in-depth discussion regarding your next property transaction. The key advantage of engaging Team Griff’s services is their local knowledge and experience. Currently in this post-seismic era, it is vital to have true professionals working on your behalf, ensuring that you are guided through the process professionally and with a caring approach. The advent of the ‘as is, where is’ market means specialised expertise are required and Team Griff has taken it on themselves to both understand and explain the pros and cons of this now accepted sale/purchase option. For over 26 years the Griff brand has become synonymous with achieving results. Griff now prides himself with his five member team and takes much satisfaction from empowering them to both achieve and reach their own goals. A team with a proven track record placed with the highest ranking Harcourts Million Dollar Club members, exceeding the $275m level. Such accomplishments highlight the team’s exceptional marketing and negotiating skills. Team Griff are recognised as industry leaders for their online presence and regular blog posts of current and relevant real estate information. E-marketing and readily available property specific detailed info means Team Griff’s clients have the edge when it comes to selling their homes, not forgetting purchasers who benefit first hand. A simple Google search says it all – the Griff brand ranking with the most frequent. Griff’s life focus extends beyond business, with quality time and fun being high priorities, while mountain biking, boating and fishing provide that vital time out. His Christian faith is his anchor for daily living, and his community is important to him. For a team approach to optimize the result for your next property transaction, be sure to talk to this award winning team - synonymous with hard work and results! Griff and his trusted team welcome your enquiry today.

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