Central Unlocked | February 2023

central unl cked

HOME BUYERS EVENING

FREE EVENT WEDNESDAY 15 FEBRUARY

SPREAD YOUR LENDING

MORTGAGE ADVISOR NIKKI KAPADIA GIVES

GUIDELINES ON WHAT TO CONSIDER WHEN DECIDING HOW BEST TO SPLIT YOUR MORTGAGE

PROPERTY INVESTMENT EVENT

LEARN HOW TO GROW RICH WITH THE PROPERTY CYCLE WITH KIERAN TRASS

PROPERTY INVESTMENT EVENING KIERAN TRASS

#PROPERTY

9 11 12

Twentythree Group Ltd Licensed REAA 2008

Business Owners Richard Humphreys 021 893 310 richard.humphreys@harcourts.co.nz

Abbey Davis 027 464 5121 abbey.davis@harcourts.co.nz

Business & Performance Manager Andrew Simich 021 479 473 andrew.simich@harcourts.co.nz

Operations & Marketing Manager Abbey Lucas 021 058 5388 abbey.lucas@harcourts.co.nz

95 Manukau Road, Epsom Auckland 1023

A NOTE FROM THE DIRECTORS

With summer (what summer) almost certainly in the rear view mirror for many kiwis we turn our attention to the first month of the real estate market in 2023. Listing’s have been steady but with a couple of historic events to begin the year with a change in country leadership & wide spread Auckland flooding. This did mean our early clearance rates fell after a string November / December finish to 25% under the hammer. Tony Alexander has come out with his real estate survey, with his key take outs being that a net 59% of agents feel that prices are falling in their location, little changed from levels over the past 12 months. From what our team has reported, and what we are seeing this would still be accurate. The withdrawal of buyers from attending opens homes shows signs of ending, but attendance at auctions continues to decline. With well presented homes, we are seeing good open home attendance but bringing them through to transact still has its challenges, but overall properties are still selling. Buyers remain concerned about prices falling after they make a purchase, rising interest rates, and access to finance. Our team is seeing the same concerns with our attendees and buyers. Our prediction? We think we will look back at the first few months of 2023 and this will have been a good time to buy, and think that once we see the medium to long terms interest rates ease back buyers will return.

Management

INSIDE THEMarket

Tips for Dealing with Rising Mortgage Rates

DECEMBER 2022 | AUCKLAND CENTRAL MARKET INSIGHTS

Activity remained subdued, price falls begin to stabilise.

Rising interest rates are bad news for first home buyers and borrowers alike, with new homeowners and investors (those who bought homes in the last 18 months) facing much higher mortgage repayments for the first time. With the Reserve Bank of New Zealand signalling further interest rate hikes are on the horizon, how can we avoid placing strain on already tight budgets and stay on top of bigger mortgage repayments?

Here are some options:

REINZ Chief Executive, Jen Baird says prices continue to ease but the pace of the decline is slower, and the market has settled at its new pace.

1. Check what mortgage you are currently on

“We usually see a slowing of activity as we head into the festive season, and we are comparing this December to one that was right at the peak of the pandemic market.

The first step is to determine how your current mortgage is structured, as interest rate increases will affect the floating portion of your home loan, as well as any fixed interest rate terms that are ending that are going to be refixed.

Richard Humphreys Business Owner | Harcourts Twentythree

If you’re not sure how your home loan is structured, contact your lender or mortgage adviser to help you work through the details. It’s worth booking in a home loan restructure checkin with a Mortgage Express branded adviser, to ensure you’re getting the best deal available to you, and that your home loan is structured to fit your requirements.

2. Determine how interest rate increases impact you

Now that you know how your home loan is structured, your mortgage adviser can help you determine the impact any interest rate rises will have on your home loan repayments. You can also use a home loan repayment calculator – like this one – to work out what your repayments are going to look like.

If your fixed rate term is nearing the end, now is a good time to discuss with your mortgage adviser locking in an interest rate. It’s also worthwhile comparing how your interest rates stack up against any other deals in the market, and this is something else your mortgage adviser can help you with.

3. Devise a plan to help you manage higher repayments

The Reserve Bank (RBNZ) has warned that a noticeable number of households that borrowed for the first time in 2021 will find it difficult to pay their mortgages and cover all their other usual expenses. If you’re in this situation, start building up a savings buffer now to help you manage the higher repayments you are going to face in the year ahead.

Take a close look at your budget to identify the expenses you can cut out or ways in which you can boost your income. Check that you’re getting the best deal for utilities – power, internet and phone – and pay down any high interest debt as soon as you can to help free up extra cash to divert into your home loan.

Get expert advice about your financial situation

With more interest rate hikes predicted, it’s important to have a financial plan in place to help you cope with higher mortgage repayments. As well finding ways to cut back on unnecessary spending, building up a savings buffer could help you prepare for higher costs ahead.

If you’re concerned about the impact higher mortgage repayments could have on your financial situation, it’s best to seek help immediately. Contact your mortgage adviser or lender to discuss your situation before you miss any repayments.

Contact a Mortgage Express branded adviser if you have questions about your existing home loan and the impact higher interest rates could have on your financial situation.

Source: https://www.mortgage-express. co.nz/blog/rising-mortgage-rates

SPREAD YOUR RISK

Homeowners in New Zealand are being warned to prepare for more interest rate shocks, as the Reserve Bank of New Zealand lifts the OCR to get the high cost of living under control, and lenders follow with interest rate hikes. For borrowers who are concerned about the prospect of higher mortgage repayments, splitting their home loan could help spread their risk. Here are some guidelines on what to consider when deciding how best to split your mortgage.

Global uncertainty and high inflation

Earlier in October 2022, the latest consumer price index was released, coming in well above expectations at 7.2 per cent in the three months to the end of September 2022. The ongoing high rate of inflation has the Reserve Bank lifting the official cash rate (OCR) a further 75 basis points to 4.25 per cent. For some homeowners that could mean higher interest rates on the horizon.

While some homeowners may be weighing up breaking existing fixed rates early and re-fixing at a higher rate to get ahead of further increases later this year, others are discovering falling property values have reduced their equity, which could mean they face a low equity premium as well as higher interest rates.

Homeowners who find themselves in this situation could reach out to our Mortgage Express adviser Nikki Kapadia to find out if a solution is available that doesn’t require being penalized with a low equity premium.

Spreading the risk over various loan terms

Deciding how much of the home loan to split or which loan terms to fix at will largely depend on your individual financial situation and affordability. The best way to determine that is to meet with a mortgage adviser to discuss your current circumstances with a view to any future changes that could impact your financial situation.

Meeting with a mortgage adviser

Things like a new baby on the way, a change to your living arrangements such as getting married or divorced, changing jobs or getting a promotion which would mean an increase in your earnings, are all factors to consider.

The first meeting is a bit like a “meet and greet” chance for to get to know each other We’ll go o your goals, talk about the type of property you w to buy, and assess how much you have to spend We’ll also give you an indication of which lende think would be right for you, and let you know if you ’ re ready to buy now or if you need to boost deposit, pay down some debt, or bump up your savings ahead of your application We can answ any questions, help you prepare a solid home lo application, and present it to the right lender.

Splitting your home loan and spreading your risk over a number of loan terms could help minimize the risk of higher mortgage repayments as interest rates continue to rise. At the same time, it’s important not to lock yourself into too long a loan term and potentially miss out on an interest rate downturn.

Getting a pre-approval

Before you start house-hunting, it’s a good idea get mortgage pre-approval With a mortgage pr approval, you’ll know how much a lender is prepared to lend to you provided certain condit are met So you won’t waste time looking at properties you can’t afford to buy!

Crunching your numbers

We can use our easy loan tools to make understanding your finances easier

Home Loan Repayment Calculator

By scrutinizing your current situation and understanding what’s on the horizon, both short-term and long-term, a mortgage adviser can help you determine your ability to afford the repayments on your home loan for the coming two to three years. That could help you decide which loan term would best fit your situation.

To find out how much you could borrow and wh your repayments could look like using different interest rates, loan terms, and repayment frequencies

Extra Repayment Calculator

Find out how much you could save on interest w an extra repayment to your home loan Test var amounts to see how you could shorten your loa term and reduce your interest charges

Split Loan Calculator

The fact is, there is no absolute right formula when it comes to splitting the home loan or choosing various loan terms, and what’s right for you isn’t necessarily right for another homeowner. And until the Reserve Bank has inflation under control, we may see further interest rate increases over the coming 12 to 18 months, which is why homeowners need to prepare for higher mortgage costs.

Work out your repayments when splitting part o your mortgage. You can also adjust the fixed rat portion to calculate various levels of savings

Kapadia

Mortgage Adviser

FOCUS Management

Bringing you news from the world of New Zealand property management.

INVESTORS INSIGHTS

Tips for Dealing with Rising Mortgage Rates

Rising interest rates are bad news for first home buyers and borrowers alike, with new homeowners and investors (those who bought homes in the last 18 months) facing much higher mortgage repayments for the first time. With the Reserve Bank of New Zealand signalling further interest rate hikes are on the horizon, how can we avoid placing strain on already tight budgets and stay on top of bigger mortgage repayments?

After the latest Investor Insight survey compiled by Tony Alexander, he gauges how things are changing.

This month the results show the following main things:

Here are some options:

1. Check what mortgage you are currently on

• There are signs that the initial surge in concerns about rising interest rates and recession have backed off slightly.

The first step is to determine how your current mortgage is structured, as interest rate increases will affect the floating portion of your home loan, as well as any fixed interest rate terms that are ending that are going to be refixed.

• Borrowers are showing an increased preference for fixing one year over all other terms.

• Concerns about house prices falling have pulled back after a “shock” jump in December following the Reserve Bank’s policy tightening and warning of recession.

• For the first time since June a net positive proportion of investors have reported that it is easy to find good tenants.

If you’re not sure how your home loan is structured, contact your lender or mortgage adviser to help you work through the details. It’s worth booking in a home loan restructure checkin with a Mortgage Express branded adviser, to ensure you’re getting the best deal available to you, and that your home loan is structured to fit your requirements.

3. Devise a plan to help you manage higher repayments

• Investor interest in purchasing a new-build continues to trend downward. This bespeaks of falling residential construction this year and next.

The Reserve Bank (RBNZ) has warned that a noticeable number of

Get expert advice about your financial situation

READ MORE

With more interest rate hikes predicted, it’s important to have a financial plan

FOCUS Management

PROPERTY INVESTMENT EVENT

HERE IS HOW YOU CAN LEARN TO GROW RICH WITH THE PROPERTY CYCLE! WITH KIERAN TRASS

Tips for Dealing with Rising Mortgage Rates

Are you ready to take advantage of the coming Auckland property boom by taking your property investment knowledge and skills to the next level?

interest rates are bad news for first home buyers and borrowers alike, with new homeowners and investors (those who bought homes in the last 18 months) facing much higher mortgage repayments for the time. With the Reserve Bank of New Zealand signalling further interest rate hikes are on the horizon can we avoid placing strain on already tight budgets and stay on top of bigger mortgage repayments?

During this event you will;

are some options:

Check what mortgage you are currently on step is to determine how your mortgage is structured, as rate increases will affect the portion of your home loan, as any fixed interest rate terms ending that are going to be

• Enjoy playing our interactive property market simulation that will improve your property investment knowledge, skills and understanding of property cycles

• Become more informed and learn how to navigate the changing property market with confidence regardless of the latest impacting factors

• Experience the decade long property cycle in just an hour and a half!

not sure how your home loan structured, contact your lender or mortgage adviser to help you work the details. It’s worth booking home loan restructure checka Mortgage Express branded to ensure you’re getting the deal available to you, and that home loan is structured to fit your requirements.

• Gain valuable yet rarely known property market insights

• Grow in confidence about what truly drives the property cycle and what are mere short term influencers that have a temporary impact on the property market

3. Devise a plan to help you manage higher repayments

• Experientially receive cyclical wisdom relevant to today whilst having fun

Get expert advice about your financial situation

• Take away lessons you can apply immediately in real life

Determine how interest rate increases impact you that you know how your home structured, your mortgage can help you determine the any interest rate rises will have home loan repayments. You also use a home loan repayment calculator – like this one your repayments are going to like.

• Network with like minded individuals

The Reserve Bank (RBNZ) has warned that a noticeable number of households that borrowed for the first time in 2021 will find it difficult to pay their mortgages and cover all their other usual expenses. If you’re

With more interest rate hikes predicted, it’s important to have a financial plan in place to help you cope with higher mortgage repayments. As well finding ways to cut back on unnecessary spending, building up a savings buffer could help you prepare for higher costs

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EVENT DETAILS

fixed rate term is nearing the now is a good time to discuss your mortgage adviser locking in interest rate. It’s also worthwhile comparing how your interest rates up against any other deals in the and this is something else your mortgage adviser can help you with.

If you’re concerned

about the

impact higher mortgage repayments could have on your financial situation, it’s best to seek help immediately. Contact your mortgage adviser or lender to discuss your situation before you miss any repayments. Contact a Mortgage Express branded if you have questions about your existing home loan and the impact higher interest rates could have on your financial situation.

Sunday, February 19, 2023 10:00 AM – 12:30 PM

Fickling Convention Centre

546 Mount Albert Road, Three Kings

Auckland Tickets $10

Source: https://www.mortgage-express. co.nz/blog/rising-mortgage-rates

Bringing you news from the world of Zealand property management.

always been the case.

In my own property investing experience a case in point was late in 1994, during the middle of the 1994 to 1996 property boom. At that time the “Market Influencer” of mortgage interest rates, lifted to 11% per annum. Many investors assumed the boom must therefore be at an end purely because of interest rates and so they stopped buying. This created a sudden surplus of keen vendors unable to find buyers for their properties. At that time in 1994 the general opinion was that the boom must now be over and prices were way too high now that interest rates had risen. However the boom had simply stalled, because interest rates are not the only determining factor of property values. They are a “Market Influencer” in cyclical terms and not a “Key Driver” of the property cycle.

Realising a window of opportunity had opened up I purchased a house in Auckland at the time for just $155,000, even though the vendor’s asking price was $189,000. The vendors had committed to buying another house and no one else had made an offer to buy their existing house and so they accepted my offer. Then within a few months the stalled boom resumed its progression and interest rates reduced. I sold the same house (due to a change in my own circumstances) within eight months for $188,000.

Market influencers mainly affect our perceptions of the state of the property market, rather than drive the property cycle

to propel the property cycle, from one phase into the next, not any single one.

Market Influencers can affect the property market at any phase of the property cycle and are not typically predictable in the same way as Key Drivers are. Market Influences usually produce reactive decisions from some property investors, but offer a platform for savvy property investors to make proactive decisions. This is because savvy investors know how to recognise the difference between Market Influencers, (like interest rates) that only ever have a temporary influence on the market, and the genuine Key Drivers of the property cycle. Smart investors use the Market Influencer’s impacts on the property market to their advantage.

- KIERAN TRASS

VISIT KIERAN’S WEBSITE FOR MORE

#PROPERTY SPOTLIGHT

1/109 ST JOHNS ROAD St Johns

ON THE MOVE TO AUSTRALIA AFTER 35 YEARS

AUCTION 01 MARCH

After 35 years, it’s difficult to understand how our homeowners could bare to leave their tightly-held, family home situated in the longestablished city fringe of St Johns. But being Aussie-bound to be with family, it’s time to hand over the reins of this solid residence, the underlying value, and the wealth of lifestyle convenience that goes with it. Beyond gorgeous brickwork and immaculate gardens, this two-level home reveals a beautifully proportioned family environment built for the generations to come.

A liberal and traditional-styled kitchen rest beside the combined living and dining ideally positioned to glean off the indoor/ outdoor connection to the mature gardens and alfresco living. Living in perfect harmony upstairs is the family bathroom and three floodlit bedrooms, including the master, which is treated to an ensuite, walk-in closet and balcony overlooking the suburban canopy. The internal entry double garage, guest powder room, and separate laundry are

much like the prettily clipped and fenced grounds where kids or pets can enjoy their outdoor time in peace and privacy.

Local amenities enwrap this home in every which way. The bus stop across the road is an easy option for downtown commuters; you can discover the local-favourite Italian restaurant or takeaway bars on foot. A little further still is Meadowbank Shopping Mall with its Countdown, bookstore, boutique retailers, dining establishments and many other essential amenities. Glen Innes Train Station is only 3 km away, and for a day at the beach, just cruise to any of the eastern beaches nearby in a jiffy.

With scope to enhance value by stamping your style and in a prime location where lifestyle convenience is vital, there’s no questioning the valuable opportunity to be seized. Contact Julie now to make interest known.

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