Housing stocks returning to normal levels

Century 21 New Zealand owner

However, one ray of sunshine is the opportunity to successfully purchase a property.

REINZ’s recent nationwide real estate numbers showed the overall number of houses available for sale has returned to more normal levels, with sales transactions lifting in February.

“This winter will be a good time for first-home buyers to purchase, if they can stump up a deposit and secure adequate finance,” Tim says.

“As well as finding a good mortgage broker, now’s the time to check out the government support schemes for many first-home buyers, as well as consider a flatmate or border to help with debt serviceability,” he says.

The Century 21 leader says while the Reserve Bank’s decisions impact debt affordability, the government can change things to help tenants – such as bringing back tax deductibility on interest costs.

Once, 100 percent of interest could be claimed as an expense by residential landlords, but that is now being incrementally phased out. Currently at 75 percent, that moved to 50 percent on April 1, to 25 percent April 1, 2024, and to zero on April 1, 2025.

“It’s a tough time for tenants, and for vendors it’s taking longer to sell properties. However, this environment also throws up opportunities for those considering a residential investment property, as well more choice for those looking to buy their first or next home,” Tim says.

He says tenants sick of paying sky-high rents should do their sums on a mortgage calculator and then visit a broker to see what’s possible. They might be surprised.

“It might take some help from ‘The bank of mum and dad’ to cobble together a deposit, and you may have to rent out your spare bedroom to satisfy your banker or broker.

“Nonetheless, homeownership has proven, time and time again, a great way for Kiwis to improve their standard of living and retire more comfortably.

“Now’s the best time in recent years for many to secure their future,” he says.