Will building take the edge off?
The property market is a bit of a balancing act. We're always talking about supply and demand, rising prices and affordability – the list goes on! It's usually helpful to have a look at the supply side of things and Statistics New Zealand has recently come up with the goods.
There are a few interesting points to mention about the building consent figures from March. For one, it's encouraging to see that there were 11 per cent more consents given out over the month than in February – in fact, the number was 14 per cent higher than the same time last year!
Auckland saw the most dwelling consents for the month on 756, followed by Canterbury and then the Waikato with 588 and 219 new consents respectively. Young buyers and first time investors can take a look at this figure with a slight smile on their face, as it suggests that there are homes in the pipeline.
"Townhouses, units, and retirement villages have driven the increase in new dwelling consents over the past year," said Statistics New Zealand Business Indicators Manager Neil Kelly in an April 30 release.
At the same time, there are a few concerns that this isn't enough to meet demand in Auckland. New figures from QV show that the average price of a home has rocketed past the $800,000 mark – and prices in the city are a whopping 16 per cent above what they were in April last year.
It might not be all that comforting for run-of-the-mill owner-occupiers, but for the savvy investor, this highlights just how handy property investment in New Zealand could be as a way to to grow your wealth. If you're trying to save for your own home, or want to set yourself up for stable twilight years, it's worth having a look into how a property portfolio could help you get there.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert
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