It is a very good time to get out of renting and into home ownership, New Zealand Mortgages & Securities (NZMS) director James Kellow says.
Kellow, who heads Auckland's largest non-bank property development financier as a joint venture with Mansons TCLM, believes New Zealand property market is now at a normal level, claiming the Auckland Unitary Plan has certainly played a role in that.
“If you’re a reasonable credit risk, you’ll still be able to get a loan,” Kellow said. “If you make a reasonable offer on a house, you’ll be able to buy it.
The property and finance expert said factors including more land being opened up and the tougher loan-to-value ratios (LVRs) by the Reserve Bank have helped normalised the market.
He noted any speculation that the likes of banking reviews and any extra requirements on them will ultimately make it harder and more expensive for individuals and commercial entities to lend is unfounded.
“If you’ve got a reasonably good wage or salary to service a mortgage, you’ll always be able to borrow,” Kellow pointed out. “At the same time, if you’re a developer undertaking a viable project, you’ll still be able to borrow money.
“Don’t let anyone tell you borrowing money is getting harder. If anything developers have got a better chance now of being backed thanks to the overall success of residential and commercial developments in recent years. Sure some haven’t flown, but the overwhelming majority have been really positive for Auckland,” he added.
NZMS is financing a residential development now under construction in Wattle Downs on the Manukau Harbour, called Wattle Park. The development will have 112 terrace houses, many of which have already been sold to community house providers with others coming to market early next year at a price point of around $600,000.
The non-bank is also currently involved in luxury apartments in Long Bay, affordable housing in south and west Auckland, two apartment towers, a shared accommodation scheme in the CBD, and 150 factory-built houses being relocated to 17 different sites across the region.