THE 100 YEAR CRYSTAL PROPERTY BALL
KIERAN TRASS, PROPERTY CYCLE OBSERVER SHARES HIS OBSERVATIONS
END OF FINANCIAL YEAR TAX TIPS
MORTGAGE ADVISOR NIKKI KAPADIA HELPS SMALL BUSINESSES PREPARE FOR THEIR TAX OBLIGATIONS
PROPERTY INVESTMENT HEALTH CHECK GET AN UP-TO-DATE REVIEW ON YOUR INVESTMENT
5/32c BALLARAT ST, ELLERSLIE
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.
Welcome back everyone, after a refreshing Easter break, we are ready to hit the ground running. It’s been a challenging few months, filled with negative articles that have been echoing around us like an endless cycle. However, the good news is that market activity seems to be on the rise. Our team has noticed a trend of increased open homes activity, and multiple offers are becoming the norm.
We are excited to welcome Team Xaiver into our fold this month. They are a powerhouse team specializing in Mangere and the surrounding suburbs. Their energy and insights have already made a significant impact on our team. We also welcomed George Cook, a rising star in Mangere, who is already building a name for himself in the industry with his work ethic.
The question on everyone’s mind is whether we have seen peak interest rates. While a small change to the OCR plateauing or decreasing may be the news the market needs, the changes to the CCCFA will enable more buyers to return to the market. This should help get things moving.
This summer has been an unusual one, making winter a welcome sight. Let’s continue to work together to navigate the challenges and opportunities that lie ahead.
$45.1B worth of property sold
More than
10,700 auctions conducted
Our team sells a property every
10 MINS
Our team rents out a property every
17 MINS
$1.4B in home loans settled by finance partners
$7.7M raised by Harcourts Foundation supporting 1220 charities*
81.4 Net Promoter Score given by our sellers**
$72.6B in properties under management
More than
100,000 properties under management
135 years experience across our network in residential, rural and commercial 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?
Here are some options:
1. Check what mortgage you are currently on
Over the first few months of 2023 we have seen buyers concerned about further rises in interest rates and an economic downturn, causing many to act with hesitancy. March statistics however, show a positive upturn in the market, with sales volumes increasing to 326 in Central Auckland for the month, which is the highest number of sales since December 2022. Fingers crossed that this becomes a continuous trend in the 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.
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
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
As the end of another financial year looms, many New Zealand small business owners begin preparing to submit their tax obligations to the Inland Revenue. With a list of requirements and several boxes to tick, tax time is often seen as stressful and confusing for small business owners. But with a little organisation and the right help, it is possible to take the stress out of tax time.
To ensure your tax obligations run smoothly at the end of each financial year, set up accounting systems to help you manage your business’ finances. Whether you choose to use an accounting software program, such as Xero or MYOB, or you prefer to use a manual spreadsheet system, it’s vital you keep accurate records of everything relating to your business.
All self-employed people, including contractors and sole traders, can claim expenses against their income. Business expenses. There are also rules around what portion of business expenses you can claim etc.. Details can be found by accessing the Inland Revenue website or get help from your accountant or tax agent.
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.
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!
Whether you’re a small business owner, contractor or self-employed, you’ll need to hold on to your tax records for at least seven so you can pass them onto Inland Revenue if you’re audited. If you’re GST registered, you’ll also need tax invoices for expenses to claim back the GST. Refer to the IRD website here for information about the new laws introduced by the Government, taking effect on 1 April 2023, that have modernised the GST rules for invoicing and record keeping.
We can use our easy loan tools to make understanding your finances easier
Home Loan Repayment Calculator
To find out how much you could borrow and wh your repayments could look like using different interest rates, loan terms, and repayment frequencies
as:
Extra Repayment Calculator
• Professional services fees, like accountants, lawyers, or property managers
• Vehicle and travel expenses when you travel to inspect your property or do repairs
• Depreciation on capital expenses, like whiteware, appliances or heat pumps
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
• Legal fees involved in buying a rental property, provided the expense is $10,000 or less
• Repairs and maintenance (but not renovations that substantially improve the value of the property)
• Rates and insurance
• Mortgage repayment insurance
Disclaimer: I can only provide financial advice in the following areas: Residential Lending, Personal Lending & Business Lending.
Split Loan Calculator
Work out your repayments when splitting part o your mortgage. You can also adjust the fixed rat portion to calculate various levels of savings
Homer Hoyt was somewhat of a prophet based on his observations of property cycles. Observations such as when population growth surges there is a sudden increased demand for property. That increased demand inspires a sharp rise in rents, which results in a higher economic value of property due to the greater financial returns available from rent. Bare land values also increase too because of higher development margins available to construction firms resulting in a significant increase in the construction of new buildings. Finally, an eventual oversupply of property typically results in rent reductions and subsequent property price erosion. The level of new dwelling construction then plummets and in time results again in a housing shortage setting the stage for the same cycle to recur resulting in rent and value rises etc.
This same predictable pattern can still be evidenced in property markets today.
It is true that no-one has a crystal ball to forecast property value movements accurately.
However the past is littered with a plethora of clues that give a reasonable indication of expected value movements in the short to medium term. Property cycles are relatively predictable, much of the time,
as they tend to follow a basic long-term overarching, repetitive cycle of recovery, boom, and slump phases.
This cyclical pattern was written about over seventy years ago by Homer Hoyt, ‘the grandfather’ of the property cycle concept. In his book 100 Years of Land Values in Chicago, written in 1933,1 he analyses the movement of Chicago land values, and noted that a recurrent succession of causes and effects impacted on these values during the one hundred years from 1830 to 1930.
Hoyt concluded from his observations and analysis that a pattern of a property cycle certainly existed and he identified some of its typical key drivers. This is about as close to a crystal ball you can get.
- KIERAN TRASS
VISIT KIERAN’S WEBSITE FOR MORE
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:
1. Check what mortgage you are currently on
The Harcourts annual Property Management Activate events took place in four locations throughout New Zealand in March. The sellout events were attended by over 225 Harcourts property managers, business development managers, business owners, managers and administrators.
Chris Matthews - Tenancy.co.nz, Raymond Suen - Tenancy Services
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.
MBIE, Michael Sanz - Teams By Design, Shyrelle Mitchell - Heaney & Partners, Deniz Yusuf - Inspired Growth Training and Tal Meser - Tapi spoke at each event and they were joined by Mandy Welch from MRI Palace for the expert panel discussion session. Each guest speaker who discussed a variety of topics from process to innovation and authority was well received as the
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.
Harcourts were well represented on 16 March at the REINZ Property Management Conference as Jodine Clark, Head of Property Management hosted the Unlawful Dwellings session.
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.
team learned new skills from the best in the business. Thank you to each of them for joining our Activate series and enabling Harcourts property managers to elevate their skill set.
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.
When the Residential Tenancies Amendment Act 2019 was passed, this amendment strengthened the law for holding landlords to account if they rent out unsuitable properties. This is something that Jodine is passionate about so Harcourts were
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.
We are really proud of the high attendance at our Activate events and know our Harcourts property managers will take their new learnings with them into their daily lives.
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.
very proud to see Jodine’s hard work and dedication in ensuring that unlawful dwellings become a thing of the past, recognised in her being asked to host Garry Cruikshank, Senior Building Specialist at Auckland Council at this industry event.
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
Our owners are taking the next step up in their property journey, meaning this gorgeous 1970s refurbishment could be yours for the taking!
Situated in a pet friendly block of only 10 and set back from the road behind electric gates, this safe and secure haven is something better than new. With living over two levels, the floor plan offers plenty of space for todays living with American oak flooring, and the floor to roof renovation provided new joinery, wiring & plumbing.
As you enter into the wonderfully designed open plan living area, you’ll find the designer kitchen completed with marble benchtop and breakfast bar. This extends onto the external courtyard with an electric awning for all-yearround entertaining, all brought together
On the second level you’ll find the very stylish family bathroom, as well as two generous sized bedrooms providing comfort with white shutters. With ample storage inside, as well as a garden shed, there is plenty of room to store all you need. To top it all off you are fully fenced with two secure off-street carparks in a complex with the best neighbours in town.
Perfectly located in the sought-after suburb of Ellerslie, you’ll find everything you need nearby - shops, cafes, parks, as well as public transport and motorway access. This is a place that will truly feel like home and your opportunity to live in luxury - If you’re a first home buyer, downsizing, or looking for a solid investment, what are you waiting for? Call Lisa today!
by an eye catching hand painted mural by New Zealand artist ”Flox”.View floorplan
Auction Wednesday 03 May, 6pm
Viewing As advertised or by appointment
Property Features
Lisa Westerby
E: lisa.westerby@harcourts.co.nz
M: 027 383 7191
Click here for more information
