Highlights are that the OCR remains unchanged, Auction Clearance Rates are volatile, Mortgage Interest Rates remain low and longer term rates have reduced over the past few weeks – oh and Tony Alexanders weekly release is rivetting – again.
So, let”s start with this – as every week.
I URGE YOU to subscribe and read Tony Alexanders weekly musings – he talks A LOT about the past and future predictions on housing in a context of Domestic and Global considerations and he references what happened in the GFC and post-GFC and why (in his view). But here is a snapshot on the Tax Working Group set up to review Capital Gains Tax and recommendations around such and other similar contentious points.
“At the moment young people are being encouraged to believe that the Tax Working Group was set up to improve housing affordability for them and that such improvement will in fact come not too many years from now.
This cultivated expectation is based on the false idea that making people pay tax on their property investments will generate such a wave of selling that prices will correct greatly. It won’t and they won’t and here is why……..”
Read the rest at http://tonyalexander.co.nz/…/20…/09/WO-September-27-2018.pdf
OCR: Stays at 1.75% and the RBNZ are still suggesting a rate rise is unlikely until late-2020.
Auction Clearance Rates with one of Taurangas’ Leading Agencies have varied between a little over 13% 2 weeks ago to a little over 50% last week and up to around 30% this week.
Longer Term Mortgage Interest Rates have continued to reduce with 3,4 and 5 year rates in particular seeing a marked reduction across most lenders.
Happy Friday all – I hope those of you with children get to enjoy time with them in the School Holidays. Teachers – enjoy your well deserved break – I know how hard you all work and it’s greatly appreciated by all the parents I know.
See you at the snow….
In the meantime, BOOK AN APPOINTMENT via https://meetme.so/paul1 TO REVIEW YOUR LENDING, GET SOME LENDING or RESTRUCTURE YOUR EXISTING LENDING OR REFIX.