Like any love affair, New Zealanders’ penchant for investment property may be maturing following last month’s Budget.
Since May 20 it has been the multi-million dollar question: will the initiatives targeting property investment cool New Zealanders’ overwhelming desire to be landlords?
The indicators conflict on whether the impending end to claiming tax deductions on depreciation of buildings, among other changes, will force investors to sell up. Read more…
Does it feel like managing your rental property leaves with you no time to yourself? Are you worried about hidden risks?
Managing your own investment property can become a full-time job that also eats into your weekends and spare time.
There’s more to it than just finding a suitable tenant and dealing with the odd maintenance request. You need to know about tenancy agreements, rental property values, the Residential Tenancy Act and much more. Read more…
Should you fix or float? And over what term? These are just some of the questions you’ll be asking yourself if you’re taking out a mortgage or refinancing an existing one.
Deciding whether to fix or float your mortgage interest rate can be a tough decision to make, especially given our recent economic climate.
Wading through articles on the internet and in newspapers can often leave you baffled, so we thought it would be useful to share our thoughts on the various mortgage rate options available at the moment. Read more…
“An unwritten want is a wish, a dream, a never-happen. The day you put your goal in writing is the day it becomes a commitment that will change your life. Are you ready?”
Look below to see a cool tool to help crystalise your goals.
Auckland has the world’s fourth-best quality of living, according to a new ranking dominated by European cities.
But in another ranking for eco-cities, Wellington beats out Auckland, ranking fifth worldwide.
In both categories, New Zealand cities sit at the top of the Asia Pacific, ahead of Australian contenders.
The 2010 Mercer Worldwide Quality of Living Survey was released today, ranking cities for overall quality of living based on political, socio-economic and environmental criteria as well as sanitisation, education and transport. The company also compiled a list of top eco-cities. Read more…
This is a great story, everyone of us can relate to most of this story but only a few can relate to the ending. Enjoy!
Back in the 1800’s, in the middle of the gold rush, a man named R.U. Darby traveled west with his uncle to dig and grow wealthy.
They stopped in Colorado, and Darby’s uncle stake a mining claim. Both men worked tirelessly – from sun up until sun down – using nothing but picks and shovels. Read more…
As a new person looking to invest uncertainty has now been taken away and you can make clear decisions.
For existing investors look to make your current investment as profitable as you can and seek advise from your accountant re: your structures. There are great opportunities in the market with good yields. Read more…
The budget was not all bad. It will present investors with new opportunities in the market and also encourage investors to consider this more as a “Financial Business”
Please see the below report written by Steve Tucker Director of Valu it Read more…
By Martin Hawes
4:00 AM Sunday May 16, 2010
It will be hard to encourage Kiwis into investments outside residential property. Photo / Herald on Sunday
I am sure this week’s Budget will be tough on residential property investors. All the signs point to the end of claiming depreciation, and possibly the ring fencing of property tax losses so that they cannot be offset against other income. This will diminish investors’ cash flow and remove much of the investment case for residential property.
There are good economic reasons for doing this – as Bill English said to me some years ago, we won’t get rich as a country selling houses to each other. It’s hard to argue with that.
However, there is a problem. Read more…
1. Make extra repayments
Both consistent and ad hoc additional repayments such as bonuses and tax returns work to reduce the principal on your loan faster. The earlier in the loan term you begin making additional repayments, the greater the benefit on terms of time and money saved.
2. Make your first repayment on settlement date
Your first home loan repayment will generally be required one month after settlement. Making your first repayment on your settlement date reduces the principal before the first lump of interest accrues on the amount you have borrowed.
3. Look for a cheaper rate with good flexibility
Look for a loan with a low rate that has the flexibility you require to make additional repayments.
4. Pay loan fees and charges up front
Pay establishment fees, legal fees an lender mortgage insurance (if applicable) up front rather then capitalising then into your loan.
5. Cut back expenditure
Reduce expenditure on vices and redirect the money into your home loan instead. Smoking, an after-work beer, morning coffee and that afternoon chocolate fix all add up over the course of the week. Add to that buying at least on lunch breakfast or dinner and you could be putting more then $50 extra a week into your loan.
6. Make use of internet banking
Convenience and cheapness make this an ideal tool to arrange your finances in a way that is most beneficial to you. Schedule payments to go when you will derive the most benefit in terms of your home loans.
7. Make Fortnightly Payments
ONLY if your loan is a principle and interest loan making fortnightly payments can make you considerable interest savings
8. Review your loan regularly
Reviewing your loan regularly will help you to assess its effectiveness. Make sure you take steps to correct any waste if necessary. Remember also the loan structure that was right for you when you bought your home may not be the best for your now. Review your biggest debt annually
For a free review to make sure you are on the right loan structure for you call Beryl on 04 970 1045
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