My latest video explaining how FOMO, Fear of Missing Out, as a new friend, Fear of Over Paying. The property market is changing, slowly.
Prices are reaching a plateau. Great time for first home buyers and those looking to buy.
If you’d rather read the transcription of the video, scroll down.. you’ll see a full transcription at the bottom.
I’d love to talk to you about your finance and mortgage needs!
Learn more here: https://www.michaelmortgageman.co.nz/blog/
More about the benefits of using a Mortgage Broker here: https://www.michaelmortgageman.co.nz/why-should-you-use-a-mortgage-broker/
Contact me here: https://www.michaelmortgageman.co.nz/#contact
Michael Anastasiadis – Mortgage Broker Wellington
ps – another blog article you might enjoy: https://www.michaelmortgageman.co.nz/when-will-house-prices-drop-%f0%9f%8f%a1%f0%9f%8f%a6%f0%9f%a4%94/
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TRANSCRIPTION:
Good evening everybody, it’s Michael Anastasiadis here from Bozinoff Mortgages.
Mortgage advisor, mortgage broker, mortgages made easy coming to you live here on a Monday afternoon.
Just thought I’ll jump online and shoot a quick video and I read this quote in one of the Australian papers last week, and I thought how relevant it is to New Zealand.
“FOMO, fear of missing out now has a new friend. Fear of overpricing.” And that’s something that I’ve been seeing happening with my buyers, suppose, over the last month now.
Especially since the government announced the changes to the investors. There’s a lot of people that are now observing the market, right? So they’re no longer buying, they’re just observing. So I’ve spoken to a number of real estate agents and contacts in the industry, and it was a mixed bag over the weekend at open homes. Some were busy, some were quiet, but none were frantic, so the frenzy is over guys.
Now we won’t probably hear about it in the media, I don’t know for the next couple of weeks, at least. And let’s not get confused, right? You know the frenzy in the market doesn’t always mean the prices are now going to drop. There’s no correlation to that. So prices are going to plateau and they’re going to hold.
Thanks Mike. Hi to everyone watching, by the way. Do me a favor, press that like button, press that share button because the social media loves it and you’ll be doing me a big favor as well by doing that.
Helping me get this message out to a lot of people, so thanks guys. So like I was just saying for those of you that come on, “FOMO, fear of missing out now has a new friend. Fear of overpaying.” and we’ve seen that the markets sort of going on hold right now.
Look, don’t get me wrong it’s not going to be a big correctional crash. That’s just not going to happen.
But it’s changing from a vendors market, people selling their house, slowly to a buyer’s market, okay?
So what’s going to happen is this, over the coming weeks and months, the good properties are still going to sell because as we go into autumn and winter, New Zealand, that’s usually the most quiet time for properties.
And what real estate agents and brokers, what we need is turnover in the market. We’re not here looking for record prices, right?
Because selling one house for $2 million, isn’t the same as having lots of properties coming on and being sold and mortgages. So it’s turnover that keeps the world running, not record prices. So what we’re going to see over the coming months, because we still have low stock in Wellington, and actually all of New Zealand, prices are still going to hold but fear of overpricing is going to kick in.
So for my buyers, that means that they’re not going to be prepared to pay 1.4, 1.5, 1.6, because that’s where the market was hitting, right? Prices are going to plateau now. They’re going to stay at this 1.1, 1.2 million, which for me is like the old $800,000. So, hard to find anything under 700,000.
Look at this guy coming here to do a guest appearance on the video. My little monkey, hopefully that deserves a like. He hopes I’m going to go back in soon. Okay, I’m coming in. Someone wants to play. Here’s the other one as well. Not often you get to see my little monkeys, but here they are. Thanks for those likes.
So look, I’m not going to take too much more time because these guys want me to come in. But what it means for buyers is now’s your time. Now’s your time to shine. I think I put that video a few weeks back.
Now’s your time to find a property because there’s not that many people out there looking to buy right now. Like I said before, there’s a lot of people observing.
So like I said, people are observing to see what’s going to happen. A lot of investors, a lot are just have put the pause button they’re waiting to see.
So while they’re out, first-time buyers or people looking to upsize, now’s your chance because you’ve got less competition. Interest rates, longer term, we’re starting to see them rise slightly. Nothing that have been fed down to the banks yet to be passed on to consumers.
So if you stand back and look at everything what’s happening, the change in market, the interest rates, long-term starting to go up, borders opening, vaccines coming in. Once we hit spring, things will take off again and you know, interest rates may start going up.
I think they’re predicting sometime next year, later, next year. So some people will be looking at that, especially investors because that’s going to impact the cashflow.
What’s going to be the rental yield?
So for those people out there looking to buy, now is your chance. So if you know of anyone looking to buy, wanting to get finance approved, feel free to send them my way. I am starting to see people putting in conditions again, especially with mum and dad bankrolling some of these applications that I’m putting through to the bank and they want to see…
Look I don’t usually put them on video, but you know that these guys are a big part of my why, why I do my work, why I’m passionate and also because I love helping people.
That’s why I’m putting this content out there, you know? So people can see that the market is slowly changing and I know some real estate agents are going to be having some difficult conversation with vendors over the coming weeks and months, because those sky high prices aren’t going to be there for much longer.
So actually, if you were thinking of selling now’s your time to get in touch with your real estate agent, because things will change. Like everything the tide goes out sooner or later.
So this is what’s happening with the cycle, but don’t expect prices to crash guys, that just doesn’t happen. I can’t even remember the last time we had a spectacular price crash in New Zealand. If someone knows, feel free to put it in the comments below, but as a Wellingtonian born and bred, I haven’t seen it.
And in fact, I was looking previously today at homes.co.nz over the previous properties I’ve owned. They’ve gone up some of them, five times in value so that gives you the indication. So If you’re going to buy and hold property, there’s no point having money in the bank because you’re not going to get the capital gains that you are going to get with property.
And those fundamentals just won’t go away.
So there you are guys, hopefully this video was useful. Thanks for your comments.
Thanks for your likes. And it’ll be interesting to see if the meeting… 1931 here. That’s probably right Mike.
And I think if you look back then in the 1930s, I think you’ll see back in 1940s, the great Labour Prime Minister, Mickey Joseph Savage, they embark on a real big state house building. And some of those properties are still standing today.
So that’s what’s happening, and maybe Jacinda and co, could take a leaf out of that book, but it’ll be interesting to see if this headline makes its way to New Zealand. How fear of missing out now has a new friend fear of overpricing. I just love that quote and wanted to share it with you guys. Have a great evening.
Thanks for watching. I’m signing off and off to my monkeys. Cheers guys. God bless you all.
Again – feel free to reach out at this page here: https://www.michaelmortgageman.co.nz/#contact