There was panic in the market as soon as the Auckland Council released the prices of properties on November 13. The newly derived prices shall be effective from July next year. However, the exorbitant rise in property valuations in comparison to previous valuation of 2011 was mind blowing. It is believed that the valuers are largely responsible for this increase in prices.
The price increase according to the new valuations range from about 50% in certain regions. To dish out this large amount from their pockets is going to be difficult. This sudden ballooning in the price was expected in residential buildings, but totally unexpected in commercial or business houses. Residences and office spaces will show a mirror image in increase of prices as per this valuation.
The figures are devastating to an individual wishing to buy a house in Auckland. An increase of above 40% in numerous localities is difficult to accept or lift it's weight off the mind.
The greatest surprise in the basket was the price increase of commercial valuation. The Council had given no indication earlier of any increase in commercial property prices. The main aim of the council is to reduce the burden on business to bring them at par with residences. Why then this increase? The problem has been partially mitigated only.
These prices will be effective from November next year. But when one goes house shopping in Auckland, one should firmly keep in mind an almost doubling of prices. Keep your purse strings lose, for a large part of your savings will be invested in buying a house for your family. But stay cool. Not all is lost. There is always light at the end of the tunnel. Banks will charge lower interest rates and this will partly ease the burden on your finances.
The Valuers Auckland largely responsible for the increase in prices are happy with the outcome. The increase in prices is justified, according to them.
An average 34% increase since the last valuations done in 2011. valuations are done every three years. Rental prices will also increase. To put it briefly, the layman will be further stressed out.
This increase in prices at the end of every valuation is too high and unaffordable to a large section of the society.
No comments:
Post a Comment