12 min
5 Reasons Why The Property Market Might Not Fall In Value As Much As You Think | Ep. 234 The Property Academy Podcast
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- Investing
In this episode, we discuss 5 reasons why the property market in New Zealand may not drop in value by as much as you would otherwise think. These reasons are:
The drop in interest rates make it cheaper for homebuyers and investors to purchase property. Lower interest rates also decrease the return from term deposit, which encourage investors to seek yield in the property market
First home buyers are able to save money throughout the lockdown and are likely to form new savings habits
Investors are likely to move their focus from New Zealand's regions and instead pull back to the major cities, which have more diversified economies and have greater prospects for employment
Similarly, investors are likely to move their focus from commercial property to residential property
The Reserve Bank's increase in the money supply through the Large Scale Asset Purchasing Programme is likely to create a Cantillon effect, where investors seek higher yielding assets, which will likely push up the price of shares and property
Bonus: the loan to value ratio restriction are being removed, which allow investors to invest with more freedom.
We also mention our upcoming property investment webinar, which is being held this Tuesday at 7pm. You can sign up using the previous link.
In this episode, we discuss 5 reasons why the property market in New Zealand may not drop in value by as much as you would otherwise think. These reasons are:
The drop in interest rates make it cheaper for homebuyers and investors to purchase property. Lower interest rates also decrease the return from term deposit, which encourage investors to seek yield in the property market
First home buyers are able to save money throughout the lockdown and are likely to form new savings habits
Investors are likely to move their focus from New Zealand's regions and instead pull back to the major cities, which have more diversified economies and have greater prospects for employment
Similarly, investors are likely to move their focus from commercial property to residential property
The Reserve Bank's increase in the money supply through the Large Scale Asset Purchasing Programme is likely to create a Cantillon effect, where investors seek higher yielding assets, which will likely push up the price of shares and property
Bonus: the loan to value ratio restriction are being removed, which allow investors to invest with more freedom.
We also mention our upcoming property investment webinar, which is being held this Tuesday at 7pm. You can sign up using the previous link.
12 min