CHANGES TO THE FIRST HOME GRANT
MORTGAGE ADVISOR NIKKI KAPADIA EXPLAINS THE GOVERNMENT’S ANNOUNCED CHANGES
STAY WARM THIS WINTER
OUR TIPS AND TRICKS TO A WARMER HOME THIS WINTER
TIMING THE PROPERTY MARKET
KIERAN TRASS, PROPERTY CYCLE OBSERVER, SHARES A FEW WORDS AROUND TIMING
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.
I am thrilled to share the exciting news from our recent end-of-year awards ceremony for both our region and office. In the regional awards, our office achieved an impressive 2nd place in the Auctions medium group category for the year. This recognition speaks to the dedication and expertise of our team.
I would like to extend my warmest congratulations to Abbey Davis, Xavier Tofilau, and Lisa Westerby, who secured positions in the top 100 agents nationwide. Abbey ranked at an impressive 14th place, Xavier at 49th, and Lisa at 77th. This is a remarkable accomplishment that showcases their exceptional skills and hard work.
In addition, I am delighted to announce that Lisa Westerby had an outstanding year, claiming the top spot at #1 for the year in our office. Her exceptional performance is further recognised by her clients, as she also won the prestigious Client Experience Award, based on their feedback. Congratulations, Lisa, on this well-deserved achievement.
Furthermore, I want to recognise Harry Cooper for his exceptional efforts in cultivating a positive and supportive team environment. His commitment to fostering teamwork and collaboration within our office was recognised by a landslide victory for our Team Spirirt Award. Well done, Harry.
Last but not least, I would like to acknowledge Andrew Simich for winning the “Do the Right Thing + People First” awards, as voted by our team. These awards reflect Andrew’s dedication to integrity, putting others first, and consistently embodying our core values. It comes as no surprise to our team, as Andrew has continuously demonstrated these qualities. Congratulations, Andrew.
I am immensely proud of all our award winners and the entire team’s collective efforts. These achievements exemplify the excellence and commitment that define our office. Thank you all for your hard work and dedication throughout the year. Here’s to continued success and growth in the future.
Government recently announced changes to some of the home ownership products and programmes administered by Kāinga Ora – Homes and Communities that will take effect from 15 May 2023.
By introducing changes to the First Home Grant, Government hopes to make it easier for first home buyers to build new homes or buy newly built homes. Read on to find out what the changes are as well as the opportunities these changes could present to first home buyers looking to build new or buy new.
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.
• First Home Grant house price caps will be adjusted in several areas to align with the current market.
• The minimum new build house price cap for the First Home Grant will be lifted from $500,000 to $650,000, to reflect the rising cost of construction.
• View the updated First Home Grant house price caps here.
• First Home Loan borrowers are charged an insurance premium to cover the cost of underwriting their low-deposit loan. This insurance premium will halve from 1% to 0.5%, reducing costs that are passed on to borrowers.
• For example, someone with a mortgage of $600,000 will now pay $3,000 towards the insurance premium, instead of $6,000.
• The three-bedroom price cap for KiwiBuild homes in the Queenstown Lakes District will increase from $845,000 to $860,000, to reflect the current market.
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!
• Elsewhere, the three-bedroom KiwiBuild price cap for Hamilton, Christchurch, and places outside of the main urban areas has increased slightly by $5,000.
We can use our easy loan tools to make understanding your finances easier
• View the updated KiwiBuild price caps here.
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
• Kāinga Ora administers a range of home ownership products on behalf of the Government. Further information and resources - including an interactive decision tool, eligibility criteria and how to apply - can be found under Home Ownership.
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
Work out your repayments when splitting part o your mortgage. You can also adjust the fixed rat portion to calculate various levels of savings
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
In our local market, we are observing signs that suggest we may be approaching the bottom of the price cycle. Although there is no immediate indication of rapid price increases, the available evidence points towards a stabilisation of prices and the potential for future growth. This sentiment is supported by the Reserve Bank’s indications of potential changes to Loan to Value Ratio (LVR) rules and the watering down of Consumer Credit and Corporate Conduct (CCCFA) changes. These factors have led to increased attendance at open homes, higher participation in auctions, and more parties involved in multi-offer situations.
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.
One notable trend is the resurgence of first home buyers, indicating a renewed interest and involvement in the market. However, we have yet to witness a significant impact from investors, as there is speculation that they may be waiting for the outcome of the upcoming election before making significant moves.
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.
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 days get shorter and the chill in the air becomes more noticeable, we tend to spend more time indoors with family and friends, so creating a warm and inviting home is a priority. Make sure your home is a cosy haven with these tips.
Hardwood floors are ideal in summer, but during the colder months cover yours with a thick, lush rug. And don’t forget to leave your slippers by the door so you can pop them on as soon as you get in to instantly feel more relaxed and at home. In the bathroom, make sure you always have a bath mat laid out so there’s no cold feet post-shower either.
On a cold winter’s night, salad is no-one’s friend! It’s the season for soups and slow-cooked dishes, which are perfect for anyone who wants comfort food with minimal fuss.
Due to less daylight hours, changing bulbs to warmer LEDs and adding lamps throughout the house is vital but especially in the bedrooms and living space.
Soft candlelight also gives another layer of ambience to a room and is also your best friend when it comes to flattering lighting. If your living room has a fireplace, use it as your primary source of light during the colder months.
We all spend a lot of time during winter curled up on the couch, so make sure it’s comfy and snug. If you have a leather couch, cover it with a warm throw to take away the chill and make the room more inviting. Having a couple more warm blankets at arm’s reach is also essential! A faux-fur throw is a great investment for your bedroom. Casually drape one across the end of the bed during the day, and add it as a bedding layer during the night.
Kiwi homes came late to doubleglazing, so adding a second layer of insulation with curtains is more our style. Good curtains can reduce heat loss by up to 60% for single glazed windows, and 40% to 50% for double glazed, and reduce drafts.
You will often hear the phrases “Time in the market beats timing the market”.
Here’s why time in the property market doesn’t beat timing the property market is flawed.
First the quote “Time in the market beats timing the market” was made in relation to investing in the stock market (not the property market) by Ken Fisher (an American billionaire investment analyst, author, and the founder and chairman of Fisher Investments).
His point is that typically people invest small amounts of money in the stock market on a regular basis (i.e., monthly) over a long period of time. This concept of regular smaller investments is called dollar cost averaging. This means sometimes you will be buying stocks at their cyclical lows and other times at cyclical highs, but the average cost per stock smooths out the ups and downs. This is a risk minimisation strategy to prevent buying all, or a lot of, stocks at a cyclical high. So, in that regard timing is not important.
Second in property it’s not a race between time in and timing because when it comes to property investment most people typically invest large amounts of money on an irregular basis so in the case of investing in property timing really does matter, a lot. If you only invested in one property every 5 years or so you probably wouldn’t want to make that property investment purchase at
a particularly high point in the property cycle or just before the slump arrived.
“Timing in property compliments time in property, it doesn’t replace it”.
Timing, when it comes to investing in property, is not what most people think it is. Most think it simply means just picking the so called bottom or top of the property market. That view is an oversimplification and evidence of a lack of research. It is like a “kindergarten view” of timing when it comes to the property market.
Timing in property is so much more complex than that, but you need the context of entire property cycles to grasp the importance of timing and to understand it’s context when it comes to property investment. You can only appreciate the nuances of timing the property market when you look at it through the lens of the traditional decade (or two) long entire property cycle.
- KIERAN TRASS VISIT KIERAN’S WEBSITE FOR MORE
This adorable bungalow makes a winning first impression, impeccably presented amongst the clipped greenery of its full freehold site. Using foresight, our owners have created a family sanctuary of lasting quality, where you can relax into an environment of comfort, crafted style, and versatile function, complete with a heated salt water pool!
With head-turning street presence, the whitegate entrance and landscaped gardens set high expectations for what lies inside. Not dropping the ball, the genius floor scheme places equal emphasis on the social and quiet aspects of family life. The heart and soul of the home is undoubtedly the open plan living, where the vast superior gourmet kitchen combines with the dining and living, which naturally flows out to the alfresco oasis and sun-soaked poolside.
Whether it be the kid’s pool parties, the annual summer BBQ catch-up, or this year’s Christmas lunch, this beauty can do it all with a skip in its step.
There are four light-loving bedrooms, all with built in wardrobes, a family bathroom, and the master with its private ensuite. The home comes complete with central heating and cooling, attic storage, a garden shed and off-street parking.
In the thick of Mount Eden’s exciting diversity, within strolling range are cuisines, cafes, local stores, good schools, and it’s a cruisy commute into the city via car or bus.
We know this will be hugely popular; we can’t wait to introduce you to it all at the next open!
View floorplan
Auction Wednesday 31 May, 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
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 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.
Managing an investment property can be a full-time job and one that many investors don’t have time for. One way to streamline property management is to work with an experienced property manager who will ensure your tenants are happy, all rental payments are collected, and that your property remains in tip-top condition. Read on to find out more about the vital role property managers play in maximizing the potential of your investment property.
Why Work With a Property Manager?
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.
Here are some of the other advantages of working with a property manager:
• Expertise and experience: If you’re new to property investment, learning as you go could lead to expensive mistakes. Property managers possess valuable knowledge and experience, including a thorough understanding of the real estate market and rental regulations and laws which them to effectively market your property, find qualified tenants, and navigate legal requirements.
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.
Property managers are professionals specialising in overseeing and managing rental properties on behalf owners. Their responsibilities include marketing the property, screening potential tenants, ensuring rents are paid on time, and handling repairs and maintenance. Because they understand current market conditions and are familiar with rental legislation, they can also help you price your rental property competitively and ensure you remain compliant.
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.
• Saving you time and stress: Managing an investment property requires a significant sacrifice of time and energy. Phone calls from tenants, chasing up outstanding payments, arranging repairs and maintenance, can all be time-consuming. By collaborating with a property manager, you can offload many of these time-consuming tasks, freeing up your own time and relieving you of the stress.
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.
• A buffer between you and your tenants: From vetting and screening to ongoing communication, finding and keeping reliable tenants is one of the most important roles a property manager plays. Not only will a property manager screen potential tenants, verify references, and handle tenant onboarding, but they’ll also deal with conflict resolution that minimizes potential disputes and helps reduce vacancies.
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.
• Handle maintenance and repairs: Property maintenance and ongoing repairs are an inevitable part of owning an investment property. With a network of reliable contractors and vendors, property managers are often well-placed to promptly address repairs and maintenance issues, minimizing disruptions for tenants and helping maintain the value of your property.
Source: https://www.mortgage-express. co.nz/blog/rising-mortgage-rates
