Could 2016 be the year for first home buyers?

First Home Buyers found their way back into the market throughout 2015 as lending conditions remained favourable and regulatory changes targeted property investors, both local and foreign.

House shopping first home buyer
  • 26 January, 2016
  • PROPERTY MANAGEMENT, RESIDENTIAL
  • First, Home, Buyers

KiwiSaver funds being accessed for first homes continue to increase as more and more people become eligible to withdraw funds and on 1 April 2015 new rules came into effect for first-home withdrawals that allowed larger sums to be withdrawn.

‘Forecasts are mixed for where the OCR (Official Cash Rate) will go, but it’s likely that interest rates will remain relatively stable, meaning favourable times for borrowing. This of course benefits all borrowers not just First Home Buyers, but with the other buyers constrained by further restrictions, First Home Buyers should see less competition in the market, especially in the first few months of the year. We could then see foreign buyers back in the market, after being impacted by the requirement of needing a New Zealand Inland Revenue Department number and bank account late last year.

KiwiSaver will continue to be an important source of funds for First Home Buyers as more-and-more people have increased funds available for withdrawal, which they’ll probably need as values, especially in Auckland, will likely continue to grow off the back of a lack of supply and sustained demand (despite investor restrictions).

LJ Hooker NZ

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