Although bank reports are often as dry as a brick in the Sahara the latest residential property market survey done by the BNZ has some interesting information if you care to take a look. Truly. It’s on their website.

I noted a couple of things.

Firstly, that first home buyers are active in every region across the country. Which would seem to match very closely what we’re seeing too. After all, they’re the kind of client we most often assist.

Secondly, that prices are perceived to be rising. Whether or not that’s really happening is almost irrelevant – perception is reality. Having said that we’ve had several clients just recently really pushing the boat out to ensure they’re putting their best foot forward in order to buy a property so if prices are rising I’m not surprised. Especially in Auckland which always leads the way in terms of property price rises.

Thirdly, that the main reasons for sales failing to complete is because finance cannot be obtained or because building inspections reveal problems. No doubt the two are related but I still have a niggly feeling that some people are going into a buying situation without a pre-approval. God knows why you’d put yourself through the heartache but it still happens.

It seems some lessons are worth repeating:

The starting point for any home buyer is to get your pre-approval sorted. That’s true even if you have tons of equity built up over the years because lending criteria can and does change. What might have seemed all too easy 5 years ago may not be the walk in the park you remember. The GFC changed all that. Understand what you can and can’t do (financially) and you’ll be in a great position to be decisive and act quickly. Both great attributes when negotiating a house purchase whether it’s your first or fifth time.

The leaky building crisis still casts a pall over the property market and wise buyers will take the precaution of getting a building inspection done so as to avoid buying a lemon. Even if the house appears to be in perfect nick I’d still say you get one. Why? Mostly because they always reveal something that needs repair and you can use that to your advantage in terms of squeezing a lower price out of the vendor. If spending $500 on a report ends up saving you $10,000 it’s money well spent I say. If it reveals a house in perfect nick so much the better. The main thing is you didn’t end up buying a problem. Then it really is money well spent.

About Campbell Hastie

Cam is one half of Auckland based mortgage brokers, The Go 2 Guys.

He makes a living by sharing what he knows about mortgages with people, arranging mortgages for people and then insuring people.

He doesn't claim to know everything about mortgages himself which is why he teamed up with David Mercer — hence the ‘2’ in Go 2 Guys.

He writes posts regularly on his blog and has been told he has an ability to share his knowledge in a simple and sometimes memorable way.

Feel free to comment and ask any questions. Contact Campbell Hastie m: 027 697 7789.

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