Financial advisor's advice for first home buyers in 2017
The slowing property market means 2017 will be the time for property investors to keep their hands in their pockets but first home buyers to break out the chequebook.
That's the opinion of financial advisor Martin Hawes, who joined Paul Henry to talk about the property market's 2017 outlook.
He warns the slowdown will increase, especially as interest rates rise.
"I think a lot of people will be starting to hit a ceiling of affordability and therefore I think the bit of a slump we are seeing, a calming down of the property market is likely to continue."
First home buyers
Mr Hawes says first home buyers should still be on the hunt.
"I would go ahead and buy the house if you can possibly afford it. Prices may get worse, but it importantly also gives you the security on tenure."
And if you're looking, it's best to plan your mortgage rate for the future.
"I'd definitely be starting to fix now. We've already starting seeing interest rates go up here in New Zealand," he says.
He also sees a major problem in the Queenstown property market.
"We've got a major boom coming on here. We've got a genuine housing shortage where we're packing 20 people - even 25 people living in one house. Three people in one bedroom paying 175 dollars a week," he says.
"We've got a major problem here - I hope it tails off, but I can't actually see it."
Mr Hawes believes that older people looking to relocate should do it now.
"I would do it sooner rather than later. Downsizing does have its risks, I think the sooner you get that over with the better."
Mr Hawes has a warning for property investors: "Keep your hands in your pockets. There's better investment value elsewhere than there is in residential property."