Central Unlocked | March 2023

central unl cked

WEALTH CREATION EVENING

FREE EVENT WEDNESDAY 13 APRIL

IS BUYING PROPERTY STILL A SAFE BET?

MORTGAGE ADVISOR NIKKI KAPADIA GIVES ADVICE AROUND THE CURRENT MARKET FOR BUYERS

DOVE HOPSICE GRANT HELP US TO HELP OUR COMMUNITY

#PROPERTY

88 MT ALBRT ROAD, MT ALBERT

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

Central Unlcocked is subject to copyright in its entirety and the contents may not be reproduced in any form, either in whole or part, without written permission. Opinions expressed in Central Unlcoked are those of contributors and not necessarily those of Twentythree Group Ltd. No responsibility is accepted for unsolicited material.

A NOTE FROM THE DIRECTORS

The summer market suffered unseasonal weather (as we all know) with most people paying close attention to Cyclone Garbrielle after the Auckland Floods and I’m sure many people suffered from anxiety each time the rain was sustained for more than 20 minutes. The Auckland floods had demonstrated that maybe our castles weren’t as fortified as we all would like to believe. This has had an interesting effect on the market - the buyers who had come out in force early in January decided to take a step back and sit on the sidelines again. However as we began to see the end of February and the coverage of the destruction came off the headlines, people began to come back to solving their housing problems, upsizing, downsizing, entering the market, investing etc and open home numbers have bounced back and activity by the way of offers and sales.

To add some light-hearted fun to the last quarter, our office had two teams compete in the Rocky Nook Bowls summer series, and unfortunately neither won the tournament, but last year’s champs took it out again! If you are looking for a club that is super active and a great place to spend an afternoon check out the team at Rocky Nook Bowls.

Abbey & Richard

Management

INSIDE THEMarket

Tips for Dealing with Rising Mortgage Rates

FEBRUARY 2023 | AUCKLAND CENTRAL MARKET INSIGHTS

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:

As our February statistics show, the number of properties selling remains low and average days on market still higher than last year - however activity seen around the country provides us with optimism that no matter the economic challenges the world may face, New Zealanders faith in the value of owning property remains.

1. Check what mortgage you are currently on

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.

We are seeing more first home buyers in the market — but investors remain quiet. Open home attendance has climbed, specifically for well-priced and presented homes coming to market.

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.

Richard Humphreys Business Owner | Harcourts Twentythree

3. Devise a plan to help you manage higher repayments

Get expert advice about your financial situation

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.

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.

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

IS BUYING PROPERTY STILL A SAFE BET?

Meeting with a mortgage adviser

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.

Property values may be falling across New Zealand’s main centres*, with demand largely being restrained by the Reserve Bank’s interest rate hikes, but, not surprisingly, first home buyers are feeling positive about more opportunities to get into the property market. For existing homeowners, the outlook for property remains positive too, as factors such as interest rate, a thriving labour market, strong migration, and a downturn in supply continue to drive demand, ensuring property remains a safe bet.

Interest Rate Changes

Some economists believe interest rates around the world have peaked and that the housing market is likely to bottom out in 2023. While any decrease in mortgage interest rates is likely to be slow, already, we’re seeing some lenders offer heavily discounted “under the line” rates to encourage new borrowers, helping increase demand for property.

Migration factors

Net migration to New Zealand is expected to climb significantly in 2023 and, going by current figures, we could see a net gain of around 40,000 people. That means greater demand for housing which would come on top of demand from those displaced by the recent flooding.

Getting a pre-approval

First Home Buyers

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

Currently, first home buyers account for about a quarter of property sales across New Zealand, a record high, as financing and other costs prove to be too much for some investors. While entering the market may still be challenging for some first home buyers, careful preparation and the advice of a mortgage adviser may improve financing opportunities.

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

Before making any decisions about property, get financial advice from an expert. Call Nikki Kapadia for a quick chat and take advantage of a quieter property market and get onto the property ladder.

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

FOCUS Management

USING LICENSED PRACTIONERS FOR YOUR

Tips for Dealing with Rising Mortgage Rates

PROPERTY

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?

Licensed building practitioners

Here are some options:

1. Check what mortgage you are currently on

Using licensed builders, electrical workers, plumbers, gasfitters and drainlayers ensures work on your property is completed safely and meets the relevant standards.

Using licensed practitioners

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.

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

It’s important when carrying out maintenance or renovations to use licensed practitioners, where required. Hiring licensed builders, electricians, plumbers, gasfitters and drainlayers helps make sure the work is done correctly, adheres to safety standards, and meets legal requirements. Using unlicensed tradespersons may affect your insurance and could end up costing you more money if the work needs fixing later. It could also mean you are in breach of your legal obligations.

If you’re planning building work on your property, the required work will need to be assessed. A Licensed Building Practitioner (LBP) will determine if the work required is Restricted Building Work (RBW) or not. This means work that is critical to making a home structurally sound and weathertight. If the work is RBW, it needs to be designed by a Licensed Building Practitioner and the work also needs to be supervised or completed by an LBP to meet legal requirements.

Electrical workers

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.

Checking a practitioner is licensed

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.

When engaging licensed practitioners, an easy way to confirm they are qualified and competent to perform the work, is to see their professional ID card. That way you’ll know they are qualified and competent to perform the work, and that it will meet the relevant trade standards.

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.

Landlords are prohibited from doing any fixed wiring work including fitting of power points on properties that they are renting out. It’s important to use a licensed electrician for safety and to meet legal requirements.

Get expert advice about your financial situation

Plumbers, gasfitters and drainlayers

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.

In New Zealand, sanitary plumbing, gas fitting and drain laying work is restricted and can only be carried out by tradespeople who are registered and licensed to do so. Engaging unlicensed practitioners can void your insurance, compromise home safety, and increase the likelihood of leaks and costs from ongoing issues.

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.

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.

Harcourts property managers work with licensed and skilled tradespeople and can manage any required repairs at your rental property. We understand the importance of strong relationships with trusted tradespeople which deliver results for our clients with quality workmanship and competitive pricing.

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

Source: https://www.tenancy.govt.nz/maintenance-and-inspections/ regular-maintenance/using-licensed-practitioners-for-your-property/

FOCUS Management

DOVE HOSPICE HELP US TO HELP OUR COMMUNITY

Bringing you news from the world of Zealand property management.

Tips for Dealing with Rising Mortgage Rates

Last week we had the pleasure of visiting Dove House and meeting some of their amazing team behind this fantastic charity.

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?

The purpose for our visit was to see the excellent work going on behind the scenes in their clinical outpatient facility, and to see first hand the positive impact our support has on their organisation.

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

not sure how your home loan structured, contact your lender or mortgage adviser to help you work the details. It’s worth 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.

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 –your repayments are going to like.

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 and this is something else your mortgage adviser can help you with.

For our clients moving house, Dove Hospice can help you clear properties of pre-loved belongings so you can turn your second-class goods into first class care!

#PROPERTY SPOTLIGHT

88 MT ALBERT ROAD

Mt Albert

CITY-SIDE TRANQUILITY

This city-side slice of paradise and poolside fun, with idyllic volcanic views across the Mt Albert Farm and the vast expanse of Auckland’s skyline, is ready to welcome a new family. Position-ready for every known convenience and local must, from Mt Albert Train Station, to St Lukes shopping and the summit of Mt Albert; this inner-city location is the stuff of vivid dreams.

Space is not an issue with this two-storey, modernised classic. Finished to a high level and with copious outdoor transitions, you’ll dive deep into alfresco dining and the pool, aided by the crafted sunken deck and pergola in the enclosed and easy-care grounds.

From the open plan upper living space, gaze North over farmland and the innersuburbs towards the Sky Tower. The kitchen is a culinary dream that flows through the lounge and dining room straight onto the balcony. There are four generous bedrooms - two up and two down - including a master with balcony access upstairs and a master downstairs with a dressing room, which could be a fifth bedroom, two chic-infused

bathrooms, a large second living room (a great teenagers retreat) currently set up with a pool table and movie room with a projector and screen (all staying with the home), one of the bedrooms has private access, a great space for a home office or bedroom. This is an effective floorplan with opportunity for any family. In a practical sense, the laundry boasts a brilliantly versatile counter and sink space, a large entertainers garden requiring little maintenance entering through double electric gates and a drive through with loads of off street parking, a secure garage with internal access; with a large garden shed/ man cave, and clever storage solutions to complete the appeal. Adding to the local equation is zoning for Gladstone School, Owairaka School, Kowhai Intermediate and MAGS, public transport, landmark reserves and a plethora of eateries; plus, straightforward access to the CBD.

The competitive market and high demand for quality and accessible accommodation means you shouldn’t leave this one to chance, call now before it’s too late!

View floorplan

Auction Wednesday 05 April, 6pm

Viewing As advertised or by appointment

Property Features

Abbey & Richard

E: abbey.davis@harcourts.co.nz

M: 027 464 5121

Click here for more information