Caution restrains bargain hunting
Government legislation around tax issues and the prospect of rising interest rates are having an impact on buyers, says president of the Otago Property Investors' Association, Cliff Seque.
"The banks are saying we'll probably be paying two or three percent more by Christmas. To me, prices are still a bit high."
But Seque knows several Dunedin association members out there looking for properties with potential. "A friend recently bought three flats that were underlet and he's planning to do them up to increase the rents. That's the kind of thing they're after."
In Christchurch, real estate agent Tony McPherson of Ray White McPherson Group agrees there's been a lot of talk about tax changes, "so we may expect a bit of reticence".
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