Published: 26 August 2005
High oil prices may make inner-city apartments more popular, Cairns Lockie Ltd partners William Cairns & James Lockie suggest in their latest newsletter.
In a brief note entitled Will higher oil prices affect property? they suggest current higher oil prices may be permanent.
“It will be interesting to see if this will affect where people want to own property. Back in the 1970s, during the last oil crisis, the older inner-city suburbs such as Ponsonby in Auckland & Newtown in Wellington did become more popular.
“There is a current move towards inner-city apartment living – a higher oil price may give this an added stimulus. It is much easier & cheaper to live in the city, walk to work and enjoy the restaurants rather than paying an increasing price for petrol.”
As an innovative property lender, Cairns Lockie also says it may no longer need a formal registered valuer’s report before approving a loan because council valuations are being updated.
“In a number of circumstances we are happy to approve the purchase of a new property without the need for a formal registered valuer’s report. Later this year a number of council valuations are being updated. Most have not been done since 2002 and many properties have risen substantially since then. This will enable us to use more council valuations when we are being asked to refinance other lenders’ mortgages. This is good news for our borrowers as it will save both time & money.”
Website: Cairns Lockie