The hot topic in property news is the current interest rates. Will they go lower or will they increase? No-one has a crystal ball, no matter what the economists may predict.

We are having discussions every day with home buyers and landlords talking about how the market and interest rates will affect their future investing. Should they buy now or will prices drop more?

The answer is… property prices have been increasing in main city areas around New Zealand – and as a result values have been tracking upwards. In our experience if the market cools it would plateau but not drop.

When is the best time to buy? – It is always now!

Low interest rates are one of the indicators in the property cycle that things are close to improving and a property boom often follows.

If you are in a position to buy, start investing now.

We are also asked whether to have a fixed or variable interest rate on properties. While this question can be complex depending on your circumstances and financial planning, the fact that rates are low means that if you have been on a variable rate… each month the news has gotten better and better with additional savings. But once again, the reality is no-one knows what turn of events will happen next month. If you are undecided, it may be option to split your loan to fixed and variable to place a safe each way bet.