NZ mortgage giant warns of 'outright house price fall

[PTILoveYou]

Is there anyone who thinks recession or interest rate rise will not have an effect on prices?

Only in Auckland perhaps, yes.

[Jerk]

Is there anyone who thinks recession or interest rate rise will not have an effect on prices?

[eri]

as orion? said

buy as many as you can

keep as many as you can

[Kbkiwi]

Keep using your tacks. If you actually read the article it doesn't match the headline. If " a whole lot of unlikely things" actually happen and a worst case scenario occurs Auckland prices could "tumble".
It's just nonsense. Bank economists get things right a lot less than they get them wrong. They're just hunting for news. We need a good war.,

I think we are reading different articles. This one says something as simple as rising interest rates can trigger it:

While impossible to pinpoint a date, we need to consider candidates for a turn. We could see an outright fall in house prices courtesy of higher interest rates

with New Zealand's economic growth surprisingly high, higher interest rates are far more likely to eventuate soon than they were just 6 months ago.

[Anthonyacat]

In the long term, houses will go up. This, I guarantee you.

Given that, if a property purchase makes sense at its current purchase price, you should buy it. If it doesn't, you shouldn't.

Nothing could be simpler.

[eri]

certainly if over-leveraged borrowers lose a few properties to mortgagee auctions

they won't be able to say they weren't warned

[Nick G]

Don't buy a property you can't afford to hold if you lose your job for 3 months if there's a vacancy and lose your job.

[Keithw]

The FED has finally admitted that the US economy is a basket case and has said it will be holding interest rates low for at least the next 2 years. The Dow surged some 300 points on the news - 2 more years of money printing !

There is already a global recession, the politicians just wont say it out loud.

Our interest rates will stay low & if the economy doesn't improve will be cut again.

Another GFC is unlikely to see a surge in interest rates as the two conflicting sides battle it out - FED money printing, while actual money supply to our backs gets more expensive. Rates need to stay low or the system collapses.

The surge in Auckland property prices is due to demand, too many people, not enough houses & low interest rates.
While we are likely to see a reduction in the rate of increase, any significant drop is very unlikely.

As far as buying another property, my pick is that we are reaching a temporary peak, while things stabilise, then they will be off again.

[Bobsyouruncle]

Keep using your tacks. If you actually read the article it doesn't match the headline. If " a whole lot of unlikely things" actually happen and a worst case scenario occurs Auckland prices could "tumble".
It's just nonsense. Bank economists get things right a lot less than they get them wrong. They're just hunting for news. We need a good war.,

[dax]

Hi all,

Just looking to buy a second investment property and the above article in today's Herald sort of halts me in my tack.

ANZ, New Zealand's biggest residential mortgage lender, has warned of an "outright house price fall", sparked by interest rate rises or a global recession and cited Auckland in particular.

Would appreciate any comments on this.

Source

cheers

Dax