{"id":35268,"date":"2021-10-22T11:38:49","date_gmt":"2021-10-21T22:38:49","guid":{"rendered":"https:\/\/propertynoise.co.nz\/au\/?p=35268"},"modified":"2024-03-01T20:41:04","modified_gmt":"2024-03-01T07:41:04","slug":"rising-rents-push-new-zealanders-to-buy","status":"publish","type":"post","link":"https:\/\/propertynoise.co.nz\/au\/rising-rents-push-new-zealanders-to-buy\/","title":{"rendered":"Rising rents push New Zealanders to buy"},"content":{"rendered":"

PHOTO: First home buyer market share has hit a record high in New Zealand according to new CoreLogic data.<\/strong><\/p>\n

Signs of sharp rental growth acceleration across New Zealand is prompting many people to consider buying.<\/h3>\n

That\u2019s\u00a0CoreLogic\u2018s belief, noting a re-emergence of first home buyers across the country.<\/p>\n

In the latest Market Pulse, CoreLogic Chief Property Economist\u00a0Kelvin Davidson\u00a0said the recent removal of interest deductibility has had a flow-on effect, with landlords doing their best to recoup losses through increased rents.<\/p>\n

\u201cAlthough house prices have risen\u00a0a lot in the past year or so (from an already high level), many first home buyers are still finding ways to enter the market, such as using KiwiSaver or capitalising on the banks\u2019\u00a0low deposit lending\u00a0allowance.\u201d\u201cFirst home buyer market share has picked up strongly, reaching 26.4 per cent in Q3, which is a new record high,\u201d he said.<\/p>\n

But Mr Davidson noted that the allowance would be officially reduced on 1 November, and the banks may already be enforcing it.<\/p>\n

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Source: Corelogic<\/strong><\/em><\/figcaption><\/figure>\n<\/div>\n

Mr Davidson said there are strong financial incentives for people to make the move into homeownership, given that paying a mortgage is often cheaper than renting.<\/p>\n

Supply and demand is tight in the rental market, and landlords may well be trying to \u2018get ahead\u2019 of looming mortgage rate rises by increasing rents.<\/p>\n

The analysis also finds there has been a continued drop in investor activity in recent months.<\/p>\n

\u201cThe Buyer Classification figures for September confirm for Q3, as a whole, the downwards trend for mortgaged investors\u2019 (multiple property owners) market share simply rolled on,\u201d Mr Davidson said.<\/p>\n

\u201cAt 24.2 per cent for July-September, the figure was back down at the same levels as Q2 2020, which was just before the removal of the loan to value ratio (LVR) rules really sparked investor demand back to life.\u201d<\/p>\n

Movers (existing owner-occupiers who are shifting house) are still relatively quiet around the country.<\/p>\n

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