So how well did you fare with the latest round of Auckland Council property valuations that were released last week? Have you become an instant millionaire on paper? What now? Do you rush out this very minute and go trigger happy crazy in every dazzling store in the mall with a deck of credit cards, buying up large on a multitude of consumer products you didn’t really need yesterday, but feel you can suddenly more afford today? Upgrade the car and boat even? Why not. The house? Even better. Happy days. Or is it? Millionaire suburbs soar Yep OK, house prices have risen since the last round of valuations in 2014 by a ginormous 46% – but that’s not just your house, is it. It’s everyone around you (100 suburbs have now joined the Millionaires Club), so before you get delirious with anticipation on all the stuff you are going to buy for Christmas, let’s bring you back down from the clouds and back into Reality Land. Just because your asset worth has shot up on paper doesn’t mean to say your income has doubled or your bills have reduced. In fact, they may even rise if a rates increase is on the cards for you. People in poorer Auckland suburbs are more likely to be hit by a rates increase as their valuations have risen the most. But if you are thinking about selling up now and relocating elsewhere in Auckland, then you’d better be prepared for a shock when you see what other people are asking for their houses – it’s all the same market. People should remember though, that these new valuations aren’t meant as a price guide, merely a guide for working out rates, so they need to keep their expectations in check direct lenders no credit check.
To be fair, house prices are finally starting to soften due mainly to a tightening of credit criteria from banks – having fallen around 7% now down from their peak. However, with the level of growth Auckland is experiencing (we’re expected to hit around the five million mark in population within a couple of years), and interest rates remaining relatively low, house prices should stay fairly stable for some time to come.
It will be interesting to see over the coming months what impact, if any, the new valuations make on the market.
Spread your wealth wisely In the meantime, play smart and see what you can do with your newfound paper wealth. How about spreading it around to include an investment property or two. Millenials are into this Game Design Course, because of this they can create a simple casino games like netent mobile slots or making a major decision by moving down the line to a cheaper area where your money goes a lot further. Just sitting contently on it, paying down that big mortgage quietly is a wise move, too – but perhaps there are better options for you around structuring that mortgage now. If you’d like some sound advice on what options you have available, then come and have a chat to us. We’d love to get you sorted, so you can achieve your goals a lot faster Of course, if you’ve already paid off that mortgage, then you sure are sitting pretty right now … If not, better chop up those darn tempting credit cards before you spend all that paper wealth. You really don’t need that massive blow-up waving Santa with laser lights, snow machine and moving sleigh with reindeer for the front garden … do you?