We are at that time of the year again. Today we look back at what has happened in 2017
This time last year we mentioned that Politics has been very rocky. 2017 was not much different. NZ had its election and for the first time the party who had the most votes (national) did not make it into government. NZ First chose to coalition with Labour and Greens. Elsewhere, Sebastian Kurz, the new chancellor of Austria, became Europe’s youngest leader to date. Angela Merkel has secured a fourth term as German chancellor after Sunday’s election for a new Bundestag, the federal parliament. However, France welcomed a new president Emmanuel Macron. And President Trump is still the president of United States.
Other economic events include rising oil prices and the Fed’s rate hike. Oil prices have recovered somewhat to nearly $60 per barrel in December.
Throughout 2017, the OCR has been unchanged at 1.75%. The new RBNZ governor has been announced Adrian ORR who will start in 2018. He is highly regarded in the banking and finance industry.
As for NZ property, With the restrictions in LVR ratio and a change in government (who are opposed to foreigners buying NZ property), you would have expected 2017 to have been a property slowdown. However, despite all these mitigating factors, property values have held out quite well this year. Rents have also increased too.
As for borrowing, there are talks of easing the mortgage restrictions. Currently, the Reserve Bank limits the Loan to Value ratio. This will remain. However, this time last year the Reserve Bank was considering implementing a upper limit to the debt to income ratio. This means the amount you can borrow will be limited as a multiple of your annual income. So far this hasn’t happened and the topic has been postponed.
And the new rating valuation was released in November this year. As expected the values have increased significantly from 2014 values in line with genera
For some, 2017 has been quite a year. For others, it has been more or less the same.
Let’s look forward to a happy and prosperous 2018 year.