PHOTO: Property Crash
OPINION: Every now and then we summarise the property market and give our take on where it sits.
The Labour led government have certainly tried to play their part of enforcing a correction, with a Foreign Buyers Ban. But apart from that – they have done nothing else.
This is how we see it:
1/ The Labour government – has no answer to stopping the rampant property market
2/ The Reserve Bank have no answer either – since they have decided keeping the NZ DOLLAR is more important that property prices going through the roof. They will keep the OCR at record low levels – which will in turn offer cheap mortgage interest rates. The cheapest in our history!
3/ It will take a GLOBAL CRISIS like the 2008 GFC for us to experience a property crash. It won’t come from internal sources as low interest rates/commodity prices/business confidence are all in check and travelling well.