3 Factors likely to impact the value of your property in 2018
3 Factors likely to impact the value of your property in 2018.
When looking at the property market trends in NZ here are 3 factors to take into consideration.
1. Housing Supply to Increase
2. New Government to bring house price inflation under control
3. New Rental Laws
What do each of these mean.
Firstly NZ needs more houses that what it has. This has been driving price increases and will continue to be a positive driver if this is not addressed. Record dwelling consents forecasts in excess of 40,000 new homes. You’d expect an increase of supply exceeding the growth of demand to put downward pressure but the housing shortage wont be fixed in a year.
Secondly, the new Labour Governments promises is to bring house inflation by building more affordable homes and regulating investment. Following is some of their promises. Ban foreign investors from buying existing properties. Prevent investors using property investment losses as an offset on taxes paid on other income. Sales of investment property within 5 years would be taxable. When these are all brought into place you’d expect an decrease in demand for property over the short term until Investors adapt.
New Rental Laws which is likely to come into effect would mean landlords can only increase rent once a year and an increased notice time, health-wise all properties must be insulated. Whilst this is great for tenants and the rental populations well being. Increased expenses either get passed on to tenants over time or decrease supply of available rentals should investors take less “healthier” stock off the market.
It will be interesting to watch how these 3 pricing factors play out over 2018.
To find out what your property would be appraised at right now by a local expert click the link below.