Even in spite of the global financial turmoil that’s affecting property markets everywhere, every property market also faces a further slowdown during the winter months - and the market in New Zealand is no exception.
The only difference is that, as we in the Northern Hemisphere head towards spring and summer, usually times of increasing interest in the real estate sector, Kiwis are getting ready for their winter, and the end of daylight saving time in April usually heralds the end of the New Zealand real estate buying season.
As with most property markets in the world, sales are more sluggish during winter - and lending restrictions and rising unemployment due to the credit crisis are also expected to have an effect this winter too. In this article we look at how to sell a property in New Zealand if you want to get out of the market, and we look at ways that expat buyers can get on to the property ladder in New Zealand too.
Obviously expats looking to buy real estate in New Zealand during this period will be in a very strong position to bargain hard, but Kiwis are getting advice on how to sell their properties without losing their shirts. Price and presentation are being pushed as the key elements to allow sellers to maintain the value of their properties in New Zealand as they search for buyers.
How to Sell Property in New Zealand
The first advice is that sellers get an up to date valuation and make sure it is no older than 3 months. Sellers are also being advised to get rental assessments for investors who are looking to buy property in New Zealand as an investment.
Sellers are also being advised to think out of the box as stagnating real estate in New Zealand and the winter months deprive the market of buyers. Trading is becoming a popular and viable method of shifting property in New Zealand, and sellers are being encouraged to offer long settlement terms or perhaps leave goods in their houses to sweeten deals, or even find out if the buyer has a lower value property to trade along with a cash difference.
Trading is now seen as a method of swapping under utilized, non-income producing assets for property in New Zealand, and recently a trading website swapped a 2 bed-roomed Auckland apartment worth $370,000 for a Porsche, a Jaguar, a plot in Rotorua and $200,000 cash.
How to Buy New Zealand Real Estate
An option that may be very beneficial for expat buyers looking for real estate in New Zealand is a lease option on property or a rent to buy agreement. This allows the buyer to move in as a rent paying tenant, with some of the rent going towards buying the house. After a fixed period they have the option to purchase the house at the price agreed when they moved in, usually the valuation amount.
Whatever option you wish to take, property in New Zealand, as in most locations worldwide, continues to see price falls. Who knows when the bottom of the market will be reached, but there are bargains out there and many opportunities for hard bargaining. Whilst Kiwis may not want to lose their shirts to expats moving to New Zealand, any extra cash is going to be better in your pocket and not theirs.
