Are you looking to make the most of your investment property while the Auckland market is still hot? According to market statistics, now might be the best time for you to sell your North Shore home to gain the best price for your property. Property values are currently high on the North Shore; Auckland set a new record high median sale price of $868,000 across the region. However, we expect to see a move towards a buyer-focused market, where property might take a longer time to sell for the price you want, and it could mean your current investment property won’t be as lucrative as you’d like in a couple of years.
By selling now before the market drops, you could fetch the best possible price for your home. Since 2012, values have risen in Auckland considerably, and the rest of the country only started catching up in 2015. Although the Auckland market is likely to slow in the coming years, other regions around the country are beginning to become more popular. By expanding your investment in other, popular parts of the country, you could increase your gains by following the demand.
In the nine months leading up to November 2016, the average house value in Auckland rose by $118,000. Overall, the North Shore hasn’t suffered in terms of house values, with QV reporting the median sale price on the North Shore is $1,196,987 – an increase of 11.2 per cent since last year. That being said, if homes take a longer time to sell, your investment returns could suffer.
We don’t expect there to be a huge drop in price in the near future but we do expect that, over the coming months, many properties will take a much longer time to sell for the monetary result you will want from your investment. With high consumer demand and low mortgage interest rates, property is still the hot ticket, but if you are thinking of selling in the next few months, the sooner you act, the better.
Some areas are showing signs of increased growth while others are much slower. Wellington is becoming the new Auckland; the average asking price in the capital rose 2.6 per cent between January and February to a new record of $528,000, according to the latest Trade Me Property Price Index. Dunedin, Tauranga and Christchurch are all showing signs of slowed growth. Some other major centers have almost stagnated. With the potential capital gains from your North Shore home, you could have a lot to play with around the rest of the New Zealand property markets – especially right now while values aren’t as high as Auckland.
Wellington home values have increased by a rapid amount already this year, and this is only expected to keep rising over the coming months. With Wellington house prices still at a fraction of Auckland prices, you have the opportunity to invest in multiple properties in Wellington for the price of one house in Auckland; possibly, in the near future, with equivalent returns to Auckland investment too.
For help starting the process of expanding your property portfolio by selling your North Shore home, get in touch with the experts at Ray White Takapuna today.