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The Dominant Property Buyer Is...

Victoria Day – Harcourts Pukekohe

by Victoria Day, Harcourts Pukekohe

Property Investors are the dominant buyer group in the market with data just being released for December 2020 which shows they have been making the biggest share of purchases.

Buyers using cash accounted for 12% of the multiple property buyers and a further 27% are using multiple properties to leverage equity through – in total 39% of the market are investors. This is not the first time this has happened – it occurred in 2016 just before The Reserve Bank imposed the 40% deposit requirement for investors.

The home buyer’s share of the market was running neck and neck with investors but has since dropped to 23% of the market in December. According to Core logic “back in 2016 when it was clear that investors share of the market was getting too high and too fast the Reserve Bank acted and imposed the 40 % deposit requirement for investors.”

Whether the Reserve Bank will act before the end of March has yet to be seen however it is 100 percent guaranteed now that the Reserve Bank will be re instating the LVR’s in March – the question is whether it will be at a rate of 30% or 40%.

The markets trajectory has taken everyone by surprise so it is hard to predict how the year will unfold.

But If you have got questions about the market and how this may impact on your property decisions give Victoria a call – she is the Key to Your Next Adventure.

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24 Seddon St

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elocal Digital Edition – February 2021 (#239)

elocal Digital Edition
February 2021 (#239)

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