If you're looking at the property market for the right place to make a residential investment, there will be a lot of factors to take in. Some prices rise, while others stay down – and in the midst of all this is the Reserve Bank of New Zealand's (RBNZ) cash rate.

Keeping an eye on this is important, as it can influence how banks and lenders decide to set their interest rates. And this week, the RBNZ decided to keep the cash rate steady at 3.5 per cent. 

The RBNZ Governor Graeme Wheeler said interest rates across the country are historically low, and that the economy is generally pretty productive – unemployment is going down, and the construction sector is staying strong. 

But what could that mean for you?

With construction growth continuing and the cash rate staying stable, it could mean a good environment to invest in property. The economy will always have its up and downs, but that is a part of life – using property to gain equity won't happen overnight, it's something that happens over many years. 

If interest rates stay low, it could benefit home loan prospects for many New Zealanders – but investments have to be made carefully, so don't just jump right in just because of the cash rate announcement!

If you're looking for property investment in Auckland or Hamilton, then it's a great idea to speak to an adviser to get more information on where construction could be occurring, and how you could take advantage of this to start creating a property portfolio. 

The team at Goodlife are Authorised Financial Advisers, which means we can provide sound investment advice on how the interest rate environment affects you. Speak to us before you invest your hard-earned cash! 

Here's to your financial independence!

Daniel Carney
Authorised Financial Adviser / Investment Property Expert

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