The mortgage broking industry in New Zealand has been on good times for a number of years, as a very active property bubble has been developing throughout the country. The price of Residential Housing throughout New Zealand and especially in the main centres has been rising exponentially over the past decade or so, due to the population growth and a shortage of new housing stock.
The housing market in New Zealand has been very active for the past decade, as first time buyers are entering the market, existing home owners are upgrading their homes or moving to other areas, and as property investors are building their portfolios or even just starting them. In all these cases the purchasers of properties are doing so with an eye on the future value of their properties, as in New Zealand the easiest way to get rich in the current political climate is to borrow as much money as you can and use it to buy a property or two or three. If you only need to put in a 20% deposit and borrow the rest, but then your property doubles in value over 5 years, then your initial investment in the property increases by a factor of 6. It is very difficult to get these type of returns in any other business.
Mortgage brokers Upper Hutt are flourishing in this heady environment, as for every house sold there must be a purchaser and there must be a mortgage. While there are a lot of mortgage brokers in New Zealand there also are a lot of properties bought and sold every year, and with around $20 Billion dollars worth of mortgages written the mortgage brokers turning around 130 million dollar every year.
All this of course could come crashing down if the property market does a nose dive, but mortgage brokers can expect to continue to do well simply because New Zealand is well have to buy a lot of houses. If I knew government comes in after the election and build a lot of new houses then the mortgage broking industry will be very happy, because all these houses will need to be sold and all the first home buyers who will be purchasing them will need a mortgage.
While the property bubble over the past decade has been very kind to mortgage brokers Lower Hutt, they will continue to flourish because the New Zealand housing market is basically unstoppable.