If you’re struggling to make sense of the crazy things that are happening in the local real estate market currently, you’re not alone!
Every month we’re seeing media reports of eye-watering house prices, heightened sales activity and construction firms throwing fixed price builds out the window as the heated market shows no sign of cooling. That’s before we even get onto the financial side of things, with changes to lending criteria and interest rates throwing in another layer of complexity.
So, can first home-buyers still get onto the property ladder and can we still secure fixed price builds?
The answers are yes and yes!
This month we saw the new Credit Contracts and Consumer Finance Act (CCCFA) lending criteria come into effect and banks were quick to react to the changes, which are all centred around guaranteeing borrowers can afford their loans.
The changes do mean that it’s more pertinent than ever before that borrowers work with a highly experienced mortgage broker, who can utilise their relationships with lenders to secure finance, especially for first home buyers.
We’re seeing a lot of these first home buyers thinking outside the geographic square in the pursuit of making it onto the property ladder. It’s long been common for those working in Auckland to make a big hike into the city from the outskirts, due to the eye-watering price of Auckland real estate and it seems this trend has made its way down south.
Loan Market Paramount now has over 50 clients spread around the city edge, from Ashburton, Rakaia, Methven, Hinds and Mayfield, where you can still purchase a family home for less than $600,000.
But new homes are also proving popular with first home buyers and banks love lending on new builds. If your income is high enough to service a higher loan, you may even be able to secure a new build with just a 10% deposit.
And we’re still finding construction firms are willing to do fixed price builds too.
There is new construction cropping up everywhere across the wider Canterbury region, record numbers in fact! According to the Christchurch City Council, new housing growth in Christchurch is at a 20-year high.
An analysis of the council’s building consents shows that in the past 12 months Christchurch gained 2792 new dwellings, which is up 12% on the previous 12 months and is the highest annual gain in housing in Christchurch since 2000.
Suburbs in the southwest of the city, such as Halswell, Prebbleton, Wigram, Templeton, Lincoln and Rolleston are struggling to keep up with the demand and new subdivisions are popping up everywhere. Expect to see more growth to the west, from Yaldhurst to Darfield.
So don’t let the media’s ‘doom and gloom’ scare you into inactivity; there’s still plenty to be excited about out there. Instead, let it motivate you to come and talk to our team. We specialise in construction finance, so we can work with you to find out what options are available to suit your circumstances.
Whether you’re buying or building, it should be an exciting time and we want to help you experience that for yourself.