Developers squeezing out home buyers

Press Release
LoanPlan Mortgages and Finance
4 March 2013

Auckland mortgage broker urges local property buyers to be creative if they want to win the bidding war with developers

With the Auckland mortgage and housing market under pressure from developers – particularly in older suburbs like Birkenhead, Beach Haven, Belmont and Forrest Hill on the North Shore – local home buyers will have to think outside the square when buying a home.

Auckland mortgage broker and principal of integrated financial services provider LoanPlan, Christine Lockie, said the company currently has a full row of people with pre-approved mortgages, compared to normal levels which are usually half that number.

“We’re extremely busy having to renew people’s home loan pre-approvals on a regular basis because clients are finding it difficult to succeed in purchasing a property.

“Every time they want to go to an auction we need to get them into a position to buy unconditionally, and at the moment the average buyer is attending between six and seven auctions over a three month or longer time period.

“In the current climate it is difficult finding property, and even harder to successfully purchase because of high demand and a shortage of listings. There’s lots of money coming in from offshore and developers are the main bidders on any property with a reasonable sized piece of land

“Essentially developers are buying any property that has sub division potential and you mostly find those in the older suburbs where first time home buyers traditionally shop.”

Ms Lockie said strategies, that people looking to buy a home could consider, include:

1. Accessing their KiwiSaver contributions
2. Getting other family members involved
3. Broadening their horizons and looking at other areas, including West Auckland and Whangaparaoa where property prices are more reasonable and where extended motorways now provide good access
4. Consult with a mortgage broker to explore ideas you may not ordinarily consider

“All is not lost for local buyers if they think outside traditional processes,” she said.

ENDS

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