Is now a good time to buy property in Auckland?
Jul 8, 2014
Four experts give their views
Is it a bad idea to buy a property in Auckland?
Property prices in Auckland are continuing to rise despite lending restrictions and higher interest rates pushing up the cost of borrowing.
Figures released yesterday by QV show the Auckland market increased 12.3 per cent year on year and values are up 31.4 per cent since 2007 peak.
NZ Herald.co.nz talked to four experts about the issue...
Property consultant Olly Newland says renting is cheaper than owning at the moment but renting has its own pitfalls.
"I agree that renting is cheaper than owning at the moment but you are always at the mercy of the landlord."
Newland says buying a house gives the home-owner access to potential capital growth and at the same time they are paying off a mortgage.
"Interest rates are still historically low. Prices have gone up crazily in some areas but not everywhere."
Newland says while certain areas in Auckland have skyrocketed in price if you go south there is still options for under $450,000 in Clevedon or Takanini.
He predicted higher house prices in central Auckland would drive the gentrification of outer neighbourhoods like Panmure and Glen Innes.
Newland also warned that rents were likely to rise with landlords expected to pass on increased interest rate costs.
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