Winter Is About To end ... It's Spring

So it’s time to spring clean the home.

That means putting some time aside, and also checking that you have all of the cleaners that you “need” for your clean up.

But there are so many cleaning products available and they are not cheap.

http://bit.ly/2Ujg01N 

Do You Need A Fresh Start With Finances

We cannot dwell on the past, but unfortunately the banks often do.
They can penalise us for years after we have had something go wrong and make getting finance more difficult.

Well one bank whom we work with is changing this .... they will give you a fresh start.

Sometimes We Need A Fresh Start - http://bit.ly/2MKARu8 

Daffodils & Lambs Are The Signs Of A Kiwi Spring

Daffodils & Lambs Are The Signs Of A Kiwi Spring - Mortgage Managers -

As Kiwis we think of daffodils and lambs as the iconic signs of Spring.
But why should we think of these two things as Kiwi icons when neither daffodils or lambs are native to New Zealand.
We decided to look at this...

http://bit.ly/2NGocb2

Winter Is About To end ... It's Spring

So it’s time to spring clean the home.

That means putting some time aside, and also checking that you have all of the cleaners that you “need” for your clean up.

But there are so many cleaning products available and they are not cheap.

http://bit.ly/2Ujg01N 

Restructure Your Mortgage Like Scott Did

As a mortgage broker we are privileged to be able to help people like you save money on your mortgage. Today was a neat day where I was very happy to be able to help a young home owner and Vespa rider named Scott.

Let me tell you the story...

Here Is Scott's Story

Scott phoned to ask for help reviewing his home loan. He has a home loan with  ANZ mortgage of approx. $350,000 with about 26-years to run at this stage and is paying $492 per week in repayments. His loan has just come off fixed and he is paying 5.69% at the moment.
We looked at what ANZ was offering. ANZ are offering 4.39% for 1-year fixed and 4.79% for 2-year fixed which if we split the mortgage into two equal loans of $175,000 each is an average home loan interest rate of 4.59% which is not too bad. If we applied those rates to your mortgage and paid $500 weekly then this would reduce the loan term to about 21-years.
The minimum weekly repayment at 5.59% would be $445 per week so that means effectively you are paying an extra $55 weekly.

It's Best To Pay More On Your Mortgage...

If you added another $100 per week to the repayments then you make some significant gains and would pay the mortgage off in about 16-years. More importantly by paying the mortgage off faster it means that you will save over $100,000 in interest which would otherwise be paid to the bank. Lets look at this in a graph - it has more impact.

What Does This Mean To Scott

Of course a saving of $100,000 is not insignificant, but what this saving really means to Scot is he could buy a new Vespa Sprint - well in actual fact he could buy 10 of them!

Okay, he would probably not buy that many and I'm sure he could find other uses for his savings. Contact an Auckland mortgage broker from the team at Mortgage Supply Company today.

The Debate: Should You Buy Or Build Your Next Home?

This is a question many people will ask themselves and while there are advantages and disadvantages in both, there is never a clear answer that suits everyone.

At the end of the day we are all different.

Buying An Existing Home

The real benefit when buying an existing home is that it already exists.

If you find a suitable home at a price that you are happy with then with a pre-approved mortgage you can make an offer with the view to moving into your new home quite quickly. Often the whole process can be completed within a month, but that will depend on firstly finding the right house and then negotiating the price and terms of the sale.

Over recent months the hardest part was finding a house; however the market has cooled a little and people are finding there is more choice and therefore will be more time to make the decision and negotiate.

With an older house you need to consider what changes you might want to make and the maintence issues that might cost you a lot of money. There are the plaster houses that have been tagged “leaky houses” and with those you would need to take extra care and get a professional building inspector to check it thoroughly before committing to the purchase.

To Build Your Next Home

The decision to build your next home will be limited by your budget and finding a suitable section.

Your budget is always going to be important. One of the major problems people having with building a new home is the cost, and especially when you are building your dream home you will come across some great ideas and products that you may want to incorporate; however some of the really good ideas cost a considerable amount. You can make your bathroom or kitchen a design statement which may add value and appeal to your new home, but the cost in these areas can easily blow the budget too.

Think of the long-term cost including things like ongoing maintenance, but also remember that you are required to pay back the money you borrow and with a mortgage there is an interest cost too.

Finding a section that suits can be a frustrating search. The ‘perfect’ section may not exist within your budget and in areas like Auckland the prices people are paying for land is an ever-increasing amount.

A key point that I make to people is you can change a house later, but the land and aspect of the land cannot really be changed so select your section carefully.

Some people are put off building from some of the ‘nightmare stories’ that they may have heard; however there are many very positive stories too.

Finance Your New Build

Many people think getting the finance for their new build is going to be hard, but it is not as hard as it may seem.

As a mortgage broker that has both built our own home recently and financing a lot of new builds in Auckland I have a good knowledge of what the various banks can do. Some banks are quite easy to deal with and some are more difficult. While you may want to get the new build finance from your existing bank this might not be the best option for you – or it might be.

In many ways getting the finance to build a new home is easier than getting a regular home loan. The banks have differing credit policy which means selecting the right bank is important, but The Reserve Bank understand that we need more houses build and so the new build rules are not as strict.

To answer the question of should you buy or build your next home we would need to know more about you and your finances and what you really desire. I would love to have the discussion with you and share some of my own personal experiences which may help answer some of your questions.

Why New Build Houses Make Good Rent Investments

One of the more serious decisions you’ll need to make as a property investor is whether to invest in new build houses or existing houses.

As a New Zealand mortgage broker I hear all sorts of stories and hear about some older houses that have cost people a lot to maintain. For this reason building a new house is definitely something that you should consider and especially in places like Auckland where houses are going to cost more, but where house prices are rising too.

Of course there will be a lot of people with their own opinions, but in today's finance environment we think that new build houses may make better rental investments.

We explain why we say this and then you can make your own decision.

Your Tenant Prefers A New Home

In most cases, new build houses are built better and to higher standards of quality than homes built a few years ago.

They have better features such as ensuite bathrooms and heat pumps. Properties built today benefit from being more environmentally friendly. They have energy efficient windows, better insulation, and efficient heating systems which mean lower running costs for the people living there.

Most new build houses today will be built on smaller sections, but for a rental property that is typically quite good as it means less area to look after.

Having a house that is appeals to tenants means you should be able to find a tenant more easily, you will typically get a higher rent and the tenants should stay in the house for longer.

Lower Repair and Maintenance Costs

New build houses benefit from lower maintenance bills too and they should come with a builder guarantee. You shouldn't have an oven or hot water cylinder that suddenly packs up, and things like roofs will have many years before you need to replace them.

You will generally find that tenants will look after a new property better than an older one too.

New Build Houses Are Easier To Buy

With the recent changes to the LVR rules, a property investors now need a 40% deposit when buying an existing house in New Zealand with bank finance; however new build homes are exempt from those rules and therefore you do not need the same size deposit.

Some banks will allow you to buy a new house with a 20% deposit and some will even go as low as a 10% deposit.

As an investor you may be limited by the cash available to invest, and therefore being able to invest in more property for the same actual cash investment makes sense. If you had $200,000 to start a property investment plan, then applying a 40% deposit means you can buy a house worth $500,000 whereas if the deposit required was 20% then you are able to buy property worth $1,000,000.

This often means you can buy two properties rather than one, and this gives you the ability to spread your risk, gain from larger capital gains and gives you the ability to sell a property should you ever need to. We are new build finance specialists and can help you get your new investment property.