Residential Rent Returns see a Correction in July

rent declinesData from the Ministry of Business, Innovation & Employment shows national median rent as $330 for new tenancies of all property types, meaning it has come down 6% between June and July 2014. This is the lowest it has been since October 2013. The trend for three bedroom homes had a lesser impact on investors, with rents having dropped 3% in this category. The decline occurred across the three main centres of Auckland, Wellington, and Christchurch and affected both two and three bedroom properties. Continue reading

Fixed Rate Focus

Banks are currently using the fixed rate mortgage to lure investors. All but one bank has pitched their 2 year fixed mortgage rate at just under the 6% mark, with HSBC the exception at 5.85%. BNZ has been the last bank to make the move. This market is certainly interesting, as it is unusual that nearly all banks adopt similar pricing for a specific mortgage term. It is equally common that each bank carries separate terms and conditions for their rate offers. The new trend is that of cash inducements, which are used when negotiating with a borrower. Continue reading