There has been quite a lot of information about the Auckland property market out there this past week and not much of it all that helpful for all you property buyers considering your future in the market. Hopefully this week’s topic will help you to find ways to get those negative feelings under control and put you back on track when it comes to evaluating your house buying position.
Firstly I think it is important to acknowledge that for many New Zealanders house buying in Auckland is no longer possible. Regardless of their television channel subscription habits they simply do not earn enough to be able to ever save the deposit for a home and their parents are not in a position to help out. Generalist budgeting advice is not only insulting to them but also pointless.
For these Kiwis who would love to own a home but who may never do so it is important to remember that there are other ways to invest for your future and for your retirement that don’t require saving a small fortune to put down a deposit on a house. The most important advice I can give you is don’t give up on the idea of saving and accumulating because it will still help you enjoy a wonderful lifestyle later.
You need to look for saving and investment advice that fits your personal situation and recognise that there are other ways of achieving your goals than buying a house in Auckland. This is difficult to accept I know when our culture is so geared to home ownership and you are being bombarded with information about what you are supposedly missing out on but there are other alternatives if you put the effort into learning about them.
And for those who can either afford to buy in Auckland or are looking to buy another house (perhaps as a rental) then please take the time to relax and think carefully about your decisions before you make them.
One of the biggest stress makers in today’s market is the pressure you are probably feeling to buy quickly before you miss out but being stressful when you make a buying decision is a sure fire way to overlook important considerations and increase your risk of making a big mistake. Yes the market in Auckland is still moving but it isn’t moving as quickly as it was and you do have time to do your research and get the expert advice you need. And of course the same is true of other popular markets outside of Auckland.
Sadly our media seems intent on adding pressure to buyers by portraying the market as a madly boiling pot which is about to explode but the reality is quite different. I don’t know if you watched the supposed reality TV show about families buying, renovating and selling houses for a profit which aired recently. It seemed that from buying a house 1 week they worked on it for 10 then sold it at auction just 1 week after they finished. Of course the reality was quite different. The houses were bought in September last year and the renovations were finished by Christmas. The houses then sat (maybe they were waiting for the market to pick up a bit?) until the marketing of the auctions started some time before the live shows were completed. And even then in 2/3rds of the auctions only a small profit was made. And the one large profit may have had quite a bit to do with the potential to subdivide the land.
So, I would encourage you to take a bit more time to ensure you have a long term plan, take a bit more time to check out everything you can about a house you might like to buy and definitely take a bit more time to get over the initial attraction you feel to a particular house and think about the potential that it has or hasn’t got just in case there is a change in the market at any time. I know it seems as if the Auckland market can only go up but believe me it has had downturns in the past and is sure to again in the future. That won’t be a problem if you are buying and staying put for the long term though so thinking long term is always a good idea.
Take control over your buying decisions and don’t let dramatic headlines and less than real television programmes influence the way you live your life. And please don’t make decisions based solely on what your best friend’s neighbour thinks or does or on single examples of someone making a fortune by doing something. Especially if that example is portrayed in the news as representing the majority of the experiences out there because believe me it won’t be.
The Auckland property market is expensive and difficult but every week people are buying great properties and making great decisions. Relax, breathe deeply and make sure you follow what you know are the right steps and hopefully you will be able to join them.
Advising Auckland property buyers