How to get a property bargain

PHOTO: KAREN NISBET Every cycle in Wanaka, section prices can suffer.

OPINION: Until now, I’ve concentrated on the big-picture factors which will influence our housing markets through and beyond the Covid-19 crisis.*

To dig deeper and find particular pressure points, I sent a survey out last week to the near 250 real estate agents and mortgage brokers on the emailing list for my weekly publication.

How a Mitre 10 franchise defrauded one of its building contractors

I asked them what they are seeing buyers and vendors thinking and doing and released the results earlier this week.

The main areas of pain beyond some simple falls in prices for the existing housing stock, which we have seen many times before, are these.

These are building companies and individuals who are in the process of building houses and townhouses in particular, but have yet to sell them. In every recession these debt-exposed people can suffer badly.

Their debt levels tend to be high so their bankers are nervous and may not be willing to extend further credit. These people can be located anywhere around the country but this cycle might be especially present in Queenstown, Wanaka, and Auckland where loosening of plan rules has led to widespread small project developments.

These people will be very nervous and were I a buyer looking for a bargain, that is where I would start – a pressured speculative builder.

* Tony Alexander is an independent economist and presenter.