Our banks are in good shape and can withstand the Dairy and Housing woes according to a news item on interest.co.nz. The news item was referring to a Standard & Poor’s report on the banks ability to withstand the threats of these two markets.
While Diary prices are slipping and growing indebtedness of homeowners worrying our banks can handle it says the rating agency. Median property prices have dropped in recent months – down by nearly $40,000 and Auckland prices have dropped by $50,000.
Strong migration and low mortgage rates will keep the demand for houses up but most importantly our banks have enough capital and are in a better position than their International counterparts.
The measures put in place by the RBNZ and the Government are expected to keep the risk of further housing inflation low. Investors now used to working with the new rules and measures are acquiring rentals located in other regions around the country.
Competition for property in Auckland is set to continue while supply tries to catch up to demand. The property mentors, PropertyTutors, are offering free tips on how to negotiate and purchase property like a pro at their 2 hour evening workshops throughout 2016.