Interest rates will remain at historic lows for the next two years and banks will become more receptive to new customers this year, predicts economist Tony Alexander.

In his latest newsletter, the former BNZ chief economist predicts the record lows in the market will stay in place through 2022, incentivising Kiwis to spend rather than save. 

Nonetheless, Alexander notes "risks are shifting", and says the golden era for borrowers will eventually come to an end. 

He notes borrowers' enjoyment of "good mortgage rate surprises since 1979 has come to an end".

"That is extremely unlikely to be the case here on out and that has implications for the sustainability of rapid house price rises beyond this year into 2022.""This development will eventually cause some household cash flow pressures – but not in the short-term."

In the year ahead, the economist believes banks will be more receptive to new business and home loan customers, as the economic outlook becomes clearer and NZ edges towards a recovery. 

He predicts NZ lenders will begin to accept the type of deals that were rejected by decision-makers over the past 12 months.

He says: "As bankers grow less concerned about the economic outlook, they are likely to reopen their lending books for the business sector and also increase willingness to fund home purchases for the self-employed and people working in the sectors most heavily affected by the pandemic."

Tourist numbers might be lower, however, Queenstown has an exciting opportunity for a 'facelift', including a CBD upgrade, ring road and more. Read the whole article here: https://bit.ly/2CmRb0i

Having received 9 offers over 2 properties - we agree there is a lot of active buyers in the market - both investors and first home buyers are looking now. https://bit.ly/3hD1X2u

A housing development in Queenstown is one of 11 projects announced by the Government to bolster economic recovery. Environment Minister David Parker announced, the infrastructure projects, which included up to 180 residential units and retail space on the old Wakatipu High School site, would be fast-tracked under a new law. https://bit.ly/2USuR51

Whilst it is still too early to understand the full impact of COVID-19 on the property market, those willing to enter the property market now and purchase their first home will benefit from a number of changes. Interest Rates, Loan to Value Ratios, Motivated Sellers, Returns on investments - read more here 

At Harcourts, we are committed to providing you with a full range of property and real estate services, no matter where you may be in your property journey.

Harcourts full range of property and real estate services includes selling, buying, leasing, renting and investing across residential, commercial and rural properties.

We are honoured that New Zealanders have voted Harcourts the Reader’s Digest Most Trusted Real Estate Brand for the eighth year in a row.

For 132 years, New Zealanders have entrusted Harcourts with their homes. We’ve worked alongside our clients through good times and we’ve been there to support them through the most challenging of times. We will continue to earn the trust of New Zealanders in the months and years ahead, and we remain committed to maintaining the highest level of service to our clients, landlords and tenants.

If you need help with the place you call home, get in touch. We’re here to assist.

Harcourts General Manager - Kelvin Collins, with 25 years experiencce with Queenstown Real Estate - talks about the Property Market.

Click Here for the latest REINZ Media Release.

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Having not long completed another tax year, we read an interesting article about how the New Zealand tax system really works. New Zealand taxes income on a progressive basis and generally a tax liability will arise on every dollar. The article touches on family tax credits and capital gains tax. Capital gains are generally not taxed (unless you're a property investor selling a house within five years) or otherwise involved in buying and selling properties. Read more

Buying a house is the one of the biggest financial decisions you'll make. With a massive amount of information at your finger tips, here are 3 tips to guide you in the right direction ... if you need professionals - F&P can help you find a specialist.

The sign off to proceed to a detailed plan to upgrade Queenstown Town Centre  was unanimously approved.  Queenstown will look to spend $385 million - with a plan to construct a $41.5 m council building.

The bright-line property rule means that people who sell a residential property might need to pay income tax on any gains.

How it works depends on when you bought the property.

Purchased between 1 October 2015 and 28 March 2018