Now might be a very good time to buy real estate in Queenstown and Wanaka. Particularly for entry-level, residential market investors and holiday home buyers.
With my ear to the ground and eyes wide open, I am pretty astute in my observations of the property market here in Queenstown and Wanaka. Recent real estate data and reports back up my gut feelings.
The overarching issue right now is that demand continues to exceed supply. With growth in this region showing no sign of let-up, this is not going to change in a hurry. So, that’s a fact we need to accept.
But, there are some great reasons to buy now.
In general, there has been a stabilizing of property prices – but not a decline. Borrowing restrictions are having an affect. LVR’s are impacting, particularly on 1st time buyers wanting to buy a property. The major banks are being more cautious with their approach to lending particularly with respect to highly leveraged kiwis. With the possibility of increasing interest rates and a general election looming, the national trend of easing in the real estate sector is the same for Wanaka and Queenstown.
The exception will always be top-end properties where returning ex-pat buyers and foreign investors will keep real estate prices very strong.
You can’t fail to hear there is still a desperate shortage of quality rental properties in both areas, especially for long-term rental. Buying a rental property is a great way of entering the market sooner rather than later and achieving a reliable return for as long as you want to.
You might find that the best investments are in outlying towns where house prices are more achievable. You can confidently achieve rentals knocking at $600 per week for a simple, four-bedroom home.
If you’re keen to build a house in Central Otago, you will need to plan ahead! The demand for builders and tradespeople is huge and you’ll want to book them in. Or, reconsider and buy a house.
If you would like more information, I can access all the latest real estate data for you very quickly, tailored to your own needs.
In the meantime, here is a link to a recent Colliers International report on the region.