At Faisandier Group, we understand that buying a property—whether it’s your first home or an investment—is a significant step. With inflation and interest rates making headlines, it’s important to know how these factors could affect your decision-making. Let’s break it down.
Inflation Is Under Control – Why That Matters for Buyers
The latest Reserve Bank figures show inflation holding steady at 2.2%, which means the cost-of-living crisis is easing. For first-time buyers, this is a positive sign—it means everyday expenses are stabilising, making it easier to budget for your first home.
For investors, stable inflation also provides clarity. Rental yields and property values become more reliable when the market isn’t fluctuating wildly, which helps you make informed decisions about growing your portfolio.
Lower Interest Rates Could Be on the Horizon
With inflation steady, the Reserve Bank is likely to follow through on its plans to cut the OCR by 0.5% this month. In anticipation, banks are already reducing mortgage interest rates.
For example, some banks have recently dropped their 1-year fixed rates to as low as 5.57%. While rate cuts won’t be as dramatic as they were last year, it’s still a step in the right direction for those looking to keep repayments manageable.
Lower interest rates can make homeownership more achievable for first-time buyers by easing monthly mortgage costs. For investors, this shift presents an opportunity to secure lower rates on new purchases, improving cash flow. It also makes servicing mortgages more manageable while maintaining solid returns, especially in Wellington, where rental demand remains strong.
Wellington’s Property Market Sees Renewed Activity
Recent data from the Real Estate Institute of New Zealand (REINZ) shows that sales turnover in Wellington has increased by 32.3% year-on-year and more than 26% month-on-month as of November 2024. Buyer confidence is returning, and more people are making moves in the market.
For first-time buyers, this means more activity in the market, but prices remain stable, creating an opportunity to secure a home without the pressure of rapidly rising prices. At Faisandier Group, our affordable, modern townhouses provide an excellent entry point for those looking to get on the property ladder.
For investors, the market is shifting. While buyer demand is picking up, the economic slowdown in Wellington has led to an oversupply of rental properties. This means investors may need to be more strategic in selecting properties that stand out in a competitive market. At Faisandier Group, our low-maintenance, energy-efficient townhouses are designed to attract reliable tenants, offering strong long-term potential even as market conditions evolve.
How Faisandier Group Can Help
At Faisandier Group, we’re here to make the home-buying process as straightforward as possible. Our townhouses are thoughtfully designed, offering affordability without compromising on quality or style.
And because we know the market can feel overwhelming, we’re committed to transparency and honesty in everything we do.
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Ready to Take the Next Step?
With inflation steady, interest rates easing, and house prices stabilising, now could be the perfect time to explore your options. Whether you’re ready to buy or just starting to dream, Faisandier Group is here to help.
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