A little while ago I commented on the coverage of mortgagee sales in New Zealand. This week there was a useful bit of information put out which was, arguably, the more definitive research with real numbers.
The stories written in the past had been reasonably sensationalist and not particularly scientific. The new survey, from Terralink, is based on registered mortgagee sales.
What is interesting is that the percentage and actual numbers of properties sold by this method is pretty small; 191 properties nationwide in January. But growing.
We shouldn’t be surprised that the number is growing.
The points which are useful to note are that many of the sales are being done by second tier finance crowds, not the mainstream banks. I’m not sure many people knew finance companies were involved in this market.
Secondly there are always winners and losers in these types of transactions. The winners will be the buyers as it seems often the vendor will let the properties go at whatever price they can get.
For investors mortgagee sales are useful to look at, but as we reported in NZ Property Investor Magazine, there can be fish hooks in these sorts of transactions and buyers need to be aware of what is happening.
The other trend we may see is a spike in mortgagee sales while finance companies cash up their loans, and then the mortgagee market will be more focussed around what banks are doing. The message I am hearing across the market is that banks are finding more and more of their lenders are running into trouble or difficulties with repayments, but to their credit (no pun intended) some are setting up divisions within the bank to identify potential problem clients and help them before it is too late.
When it gets to the too-late stage there is little option but to go to a mortgagee sale.
A little while ago I commented on the coverage of mortgagee sales in New Zealand. This week there was a useful bit of information put out which was, arguably, the more definitive research with real numbers.
