The median price of New Zealand property has risen in May to a record $350,000. It seems that the large price tag would put a halt to purchasers and slow the market and although recent events seem to trend towards a market slow down. Dr Cullen, The Minister of Finance and the Reserve Bank feel that they can do more to slow the market.
Although the market may be slowing, New Zealand house prices have a tendency to plateau and not to fall. Which means people will find new and innovative methods of purchasing especially in a downward market.
It is always wise advice to follow a well planned and thought out budget and locating a good agent to scour the properties for you to find the right and most affordable one for you. However there are other ways to increase your precious borrowing power.
Many property purchasers are turning to family and friends to share the cost of buying a property or venturing into property investments. Not only does this allow you to share the risk, but it may also give you the extra boost to buy in an area which would previously have been out of reach. With this new shared risk, lending institutions are getting behind it offer many plans geared towards multiple party investments.
Also aligning with family and friends may have other benefits other than the initial investment. Maintenance costs, rates, bills etc can be shared.
One word of warning, while the benefits can be great in sharing investments, there are problems. Ensure you agree everything with all parties before proceeding and have everything in writing to protect against any problems down the road.
Add to del.icio.us
