2016 Market Confidence Survey LOWER HUTT SURVEY CONDUCTED ON THE 22 - 28 NOV 2016
The Summary The survey reminded us just how often we like to change homes. Of the 353 respondents, only 8% of us stay in the same home for more than 20 years. We move primarily because of location but also for a larger or smaller home. Over half of us move every 5 years. Well and truly the majority of us think house prices and rents will go up in the next 3 years with just under half thinking the new LVR restrictions will slow down investors. 25% of the buyers coming to Lower Hutt are from Wellington which is more than double the percentage from previous surveys. Over half are still coming from Lower Hutt and 15% from elsewhere in NZ. 6% are from overseas. Almost 1/3 of the home buyers are buying their first home. A staggering 30% of respondents are planning to move within the next 2 years, 11% in the next 6 months. Over 60% of people don’t think RVs provide a clear indication of what a property is worth.
2016 MARKET CONFIDENCE SURVEY
Interestingly most buyers ask what the RV is but proceed to pay what they think the property is worth. RV’s that are too high put buyers off from inquiry about properties being sold without an asking price. The assumption is owners will want even more than the RV. 65% of respondents think prices will go up in the next 3 years. Property prices and saving for a deposit are the main barriers to purchasing in the current market. Most buyers got their deposit through their saving or the sale of a previous property. 6% were assisted by family and 5% with the help of Kiwisaver. 33% of the respondents own a rental property with 10% owning 3 or more. A staggering 88% believe rents will go up perhaps this is one of the reasons 15% of respondents are currently thinking of buying a rental property. All in all the survey suggests there is still plenty of interest in property and potential for a lot of activity over the next year.
2016 Market Confidence Survey
Q1 QV has released the new Rateable Values (RV) for Lower Hutt. Do you think RVs provide a clear price indication of how much a property is worth? Answered: 353
Skipped: 0
Yes
No
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Yes
38.53%
136
No
61.47%
217
Total
353
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2016 Market Confidence Survey
Q2 Do you think house prices will go up or down in the next 3 years? Answered: 353
Skipped: 0
Prices will go up
Prices will go down
Stay the same
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Prices will go up
64.59%
228
Prices will go down
12.75%
45
Stay the same
22.66%
80
Total
353
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2016 Market Confidence Survey
Q3 What do you think are the main barriers to purchasing property in the current market? Answered: 353
Skipped: 0
House prices
Saving for a deposit
Life situation
Mortgage rates
Finding the right property A combination of the above
Not applicable
Other (please specify) 0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
House prices
22.95%
81
Saving for a deposit
19.83%
70
Life situation
0.85%
3
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2016 Market Confidence Survey Mortgage rates
0.57%
2
Finding the right property
6.80%
24
A combination of the above
39.09%
Not applicable
0.00%
0
Other (please specify)
9.92%
35
Total
138
353
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2016 Market Confidence Survey
Q4 How did you get your house deposit together? Answered: 353
Skipped: 0
Parental or family support
Trust
Previously sold property
Kiwisaver
Savings
A combination of the above Other (please specify) 0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Parental or family support
5.67%
20
Trust
0.28%
1
Previously sold property
20.40%
72
Kiwisaver
5.38%
19
Savings
34.84%
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123
2016 Market Confidence Survey A combination of the above
26.06%
92
Other (please specify)
7.37%
26
Total
353
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2016 Market Confidence Survey
Q5 Where were you living before the house you currently live in? Answered: 353
Skipped: 0
Lower Hutt
Wellington
Elsewhere in New Zealand
Overseas
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Lower Hutt
53.54%
189
Wellington
25.78%
91
Elsewhere in New Zealand
15.01%
53
Overseas
5.67%
20
Total
353
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2016 Market Confidence Survey
Q6 How long did you live in your previous home? Answered: 353
Skipped: 0
0 - 1 years
2 years
2 - 5 years
5 - 10 years
10 - 20 years
20+ years
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
0 - 1 years
14.73%
52
2 years
12.18%
43
2 - 5 years
30.88%
109
5 - 10 years
23.23%
82
12.75%
45
10 - 20 years
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2016 Market Confidence Survey 6.23%
20+ years Total
22 353
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2016 Market Confidence Survey
Q7 How long have you lived in your current home? Answered: 353
Skipped: 0
0 - 1 years
2 years
2 - 5 years
5 - 10 years
10 - 20 years
20+ years
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
0 - 1 years
31.73%
112
2 years
11.61%
41
2 - 5 years
20.11%
71
5 - 10 years
15.58%
55
13.31%
47
10 - 20 years
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2016 Market Confidence Survey 7.65%
20+ years Total
27 353
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2016 Market Confidence Survey
Q8 Why have you chosen to live in your home for this time period? Answered: 353
Skipped: 0
Saving for a new home
I like the area
It’s my home for life
Roof over my head
Other (please specify)
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Saving for a new home
8.50%
I like the area
46.74%
165
It’s my home for life
17.28%
61
Roof over my head
8.78%
31
Other (please specify)
18.70%
66
Total
30
353
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2016 Market Confidence Survey
Q9 What was the reason for buying the home you currently live in? Answered: 294
Skipped: 59
Downsized
First home
Investment
Location
Upsized
Other
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Downsized
7.48%
22
First home
30.61%
90
Investment
4.08%
12
Location
24.15%
71
17.01%
50
Upsized
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2016 Market Confidence Survey 16.67%
Other Total
49 294
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2016 Market Confidence Survey
Q10 Would you look to move? If so, when? Answered: 294
Skipped: 59
0 - 6 months
6 -12 months
12 - 24 months
I do not plan to move
Other (please specify)
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
0 - 6 months
10.88%
32
6 -12 months
9.52%
28
12 - 24 months
10.20%
30
I do not plan to move
48.64%
143
Other (please specify)
20.75%
61
Total
294
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2016 Market Confidence Survey
Q11 Why would you move? Answered: 294
Skipped: 59
Downsizing
Investment
Moving cities
Location
Upsizing
I do not plan to move Other (please specify) 0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Downsizing
10.54%
31
Investment
4.42%
13
Moving cities
9.52%
28
Location
16.33%
48
Upsizing
15.31%
45
31.97%
94
I do not plan to move
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2016 Market Confidence Survey
11.90%
Other (please specify) Total
35 294
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2016 Market Confidence Survey
Q12 Where would you look to move to? Answered: 294
Skipped: 59
Lower Hutt
Wellington
Elsewhere in New Zealand
Overseas
I do not plan to move
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Lower Hutt
38.10%
112
Wellington
10.88%
32
Elsewhere in New Zealand
15.31%
45
Overseas
5.78%
17
I do not plan to move
29.93%
88
Total
294
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2016 Market Confidence Survey
Q13 How many rental properties do you own? Answered: 294
Skipped: 59
0
1
2
3+
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
0
67.01%
197
1
15.99%
47
2
6.80%
20
3+
10.20%
30
Total
294
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2016 Market Confidence Survey
Q14 Do you think rents will go up or down in the next 3 years? Answered: 294
Skipped: 59
Up
Down
Stay the same
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Up
87.76%
Down
1.70%
5
Stay the same
10.54%
31
Total
258
294
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2016 Market Confidence Survey
Q15 How is your rental property managed? Answered: 294
Skipped: 59
Self-managed
Property Management...
I do not have an rental...
Other (please specify)
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Self-managed
16.67%
49
Property Management Company
14.63%
43
I do not have an rental property
65.31%
192
Other (please specify)
3.40%
Total
10 294
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2016 Market Confidence Survey
Q16 Are you thinking of buying a rental property in the current market? Answered: 293
Skipped: 60
Yes
No
Maybe
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Yes
14.68%
43
No
64.85%
190
Maybe
20.48%
60
Total
293
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2016 Market Confidence Survey
Q17 Do you think the new LVR restrictions will slow down investors? Answered: 294
Skipped: 59
Yes
No
I don't know
0%
10%
20%
30%
40%
Answer Choices
50%
60%
70%
80%
90%
100%
Responses
Yes
43.54%
128
No
32.31%
95
I don't know
24.15%
71
Total
294
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