Rotorua Property Values
Recently there was an article about Rotorua property values and as a mortgage broker, I could not help but add my two cents worth. The question I often get asked by clients home a home is “what do you think it’s worth”?. I would love to be able to have a answer for them but my answer is usually “what ever the market is prepared to pay”.
Of course, when it comes to securing a home loan for them, the bank will always ask what the valuation is and what is the purchase price so the valuation and the sale price will determine how much they will lend on the property. As a rule of thumb the bank will lend the lesser of the two values, so it is a good idea when securing a mortgage is to make sure your offer is not higher than the valuation; it can make things a little more difficult to get and may require you to have a larger deposit.
My View as a Mortgage Broker
Over the at 10 years as a Rotorua mortgage broker, I have seen property prices sky rocket and fall, and mostly depends on mortgage interest rates. The lower the interest rates, the higher the demand, and the higher the demand the more the values go up, conversely, the higher the interest rates, the lower the demand and therefore the lower the value of the property (well at least what people are prepared to pay). It’s all about supply and demand and that really determines what people will pay.
If you are selling or buying, my advice is to look around and see what is being sold and get a good understanding of what the market is doing. Get information from a number of sources and real estate companies and even talk to a property valuer about where they think the value of the property you are buying or selling may be. Get informed and educated, it will make you a better buyer and seller.
Home Loan Pre-Approval
If want to get pre-approved mortgage finance then I would be happy to talk to you and secure a pre-approved home loan for you, please feel free to contact me anytime.