Westpac report says the good times in the residential property market will "end very soon".
The housing market is facing a looming slowdown, according to Westpac's chief economist Dominick Stephens.
In a Home Truths Report on the housing market Stephens said although the market was positive for now, it will soon slow.
"In our view the good times for the market are going to end very soon," he said.
"We are forecasting a small decline in house prices in the second half of 2018.
The report pointed to six factors that would likely cause a market slowdown:
- Foreign buyers will be banned from buying existing residential properties, probably by the middle of this year.
- Ring fencing tax losses on residential investment properties, which means investors won't be able to offset any tax losses from a property against other income.
- The Tax Working Group will probably recommend a Capital Gains Tax, although the family home will likely be exempted.
- Mortgage rates are more likely to rise than fall
- Net migration is expected to keep slowing while home construction will keep rising.
"This is a prodigious set of negative factors, but for a few reasons we are forecasting only a slight house price decline, rather than anything dramatic," the report said.
Poll: Is it rude to talk on the phone on a bus?
Buses can be a relaxing way to get home if you have a seat and enough space. However, it can be off-putting when someone is taking a phone call next to you.
Do you think it's inconsiderate for people to have lengthy phone calls on a bus? Vote in the poll, and add your comments below.
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65.3% Yes
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32.3% No
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2.4% Other - I'll share below
International Volunteer Managers Day
Yesterday marked International Volunteer Managers Day. So throughout this week we will be spotlighting several amazing volunteer managers from across the Wellington region.
Liv has recently started managing a diverse team of volunteers at The Free Store Wellington. Here are some words about what she loves about her role!
Floor show
Spruce up your outdoor area for spring soirées in the sun with a simple but stylish rug you can personalise with your own design using your favourite Resene colours.
Find out how to create your own with these easy step by step instructions.
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