The big problem is mortgage resets into the new higher rates. Unlike in N. America, you can't get a 30 or 40 year mortgage fixed term rate in NZ. Typically max is 5 years and all those that mortgage 2 - 5 years ago will be in for a rude awakening if they were mortgaged to the max.
I prefer to use the street level barometer on house price sales. Down my street there's been a house gone for sale over ; first listed 2 months ago and went for auction after another auction. It's clear the listing was passed and sellers in today's market are refusing to sell for less. Likewise in the past year i've seen more and more houses being 'passed' in as they don't meet the reserve price. Interestingly QV valuations sent in the mail has placed our neighbourhood as a whopping +54% increase in the past 3 years. If next year or so houses continue to lose their ground, then i would be quick at filing for a reassessment as a way to lower the rates bill.
BNZ does do a 7yr fixed term but was also very expensive many percent more than 5yr back when we see sub 3% in the 5yr ..the 7yr was like 5.99% etc ...
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
BNZ does do a 7yr fixed term but was also very expensive many percent more than 5yr back when we see sub 3% in the 5yr ..the 7yr was like 5.99% etc ...
One of the banks stopped offering the 7 year mortgage last year (I had thought it was BNZ but maybe not).
Price/rate was probably an issue. It wasn't just that they hadn't had anyone take it up, but they hadn't had anyone even inquire about it!!
Cheers guys.The thread title does have me wondering whether it's time to start averaging in (nearer a bottom) to property stocks here and Aus and maybe an etf.
Originally Posted by SBQ
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