It seems fitting that I started out talking about the Nelson being the Centre of NZ here in my 1st post, and as Xmas nears and 2008 draws to an end, I find myself again writing about it.
On Saturday night, according to the Nelson Mail, 4000 people, that’s 1000 more than past years, joined in the walk to the spire in the Community Trust Lantern Spectacular, kicking off our local Nelson Summer Festival Programme.
The paper reported that they way was lit with magical art installations, like King Neptune and an Ice Queen along with her unicorns. And even the Ice Queen warmed up by handing out snowflakes to local children as they climbed past her on their way to the top.
Adding further entertainment to the youngsters, fur creatures came out of the trees.
In fact so many turned up that there was a five minute wait [ equivalent to Nelson's worst traffic jam 
] before setting off on the trek.
This years Summer Festival continues with outdoor movies in many local parks, the Teddy Bears Picnic along with many other events, some quite major events like the Sealord Opera in the Park.
December 15 2008 | Nelson | No Comments »
Interest.co.nz has just released the latest report in the Wizard first-home buyer home loan affordability series.
And it has some good news, home loan affordability has improved to its best in 3½ yrs.
Backing up the last report in which Nelson was one of 3 improvement zones in NZ, the latest report informs us that Nelson dropped slightly -1.7% in terms of affordability, however overall affordability is just about back to where it was approximately 4 years ago.
John Grant, Wizard Home Loans, Director, New Zealand Business, commented
“This will be the best Christmas in home affordability terms in 4 years,” said “Tax cuts, lower house prices and interest rates are all working together to make housing more affordable going into 2009″
“Further interest rate reductions and more tax cuts in April next year will make it much easier for first home buyers to enter the market,” he said.
“2008 has been a rough year for the economy and 2009 looks tough too, but there has been a big silver lining in the form of much better housing affordability.” Mr Grant said.
Specifically the report for Nelson says….
| Based on our first-home buyer household profile, it now takes 30.7% of the median take-home pay to service a mortgage of a median-priced home purchased in November. Median-priced housing is affordable for families in Nelson/Marlborough when both adults work.
This is down from 32.4% in the previous month, October. A year ago, it was 40.7%. |
And regarding the overall current market climate, the report goes on to say…
Affordability looks set to further improve in December and through the first half of 2009 as interest rates fall at the same time as house prices are subdued and fresh tax cuts are delivered in April. Most economists expect the Reserve Bank to cut the Official Cash Rate by a further 100 basis points to 4% by mid 2009 as easing inflation pressures and the prospects for global recession force the central bank’s hand.
SOURCE: interest.co.nz
PART II
Personally I think buyers that are presently in a position to purchase should consider their situation very seriously. I don’t have a crystal ball, but I can forsee a climate next year when unemployment will be higher than its present level, and given the reasons, and there are many, it may well just be a great time to take advantage of the current opportunities, combined with taking out a floating rate loan, rather than fixed.
OK, if that’s what you’re saying, then I’ll wait til next year!
Double edged sword here I feel, I certainly am aware that our local market took off earlier this decade because of many factors, some that were completely out of our control, in fact NZ’s control.
Next year interest rates will definitely be lower than what they have been, and in a growth area, Nelson being one of those, you will also be competing with investors.
In the case of Nelson/Tasman you will have to be pro-active rather than reactive, because our lower exchange rate is setting up the sort of “attractiveness” that made overseas investors very interested in our region a few years back.
December 15 2008 | Nelson | No Comments »
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