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Capital Concepts blog

A breakdown of Labour’s proposed policy to shut down a ‘speculation tax loophole’.

Recently, the Labour Party announced their policy regarding what party leader Andrew Little referred to as ‘Negative Gearing’ tax breaks for property investors. Described as shutting a ‘speculation tax loophole’ this announcement has created a lot of confusion amongst both property investors and non-property investors alike. What actually is negative gearing? The term negative gearing simply means that the property …Read More

Controlling cash contribution sweeteners

Banks are reducing incentives for borrowers and making it harder to obtain loans. Incentives such as TVs, phones, and cash have been offered by banks to attract mortgage customers for years – but such incentives are thinning and the banks are imposing tough stress tests which make it harder for borrowers to meet lending criteria. Six months ago home-buyers were …Read More

Mortgage strategy in an unsettled market

Market observations Recent market data indicates more subdued sales activity and less demand in many regions around the country, especially in Auckland where the market has fallen far from its high- point of recent years. Despite this, house prices just keep rising in most areas including Wellington. The recent LVR restrictions have limited the numbers of buyers in the market, …Read More

Mortgage Landscape – Setting the scene for 2017

There are a number of factors that have recently converged to change the borrowing landscape, ultimately making it harder for people to obtain a mortgage. These changes make using a good mortgage broker more relevant than ever. Here are some quick facts about the current mortgage landscape: Interest rates are on the rise Reserve bank LVR restrictions are making it …Read More

Investor confidence in property remains high [survey]

With the recent release of the ANZ Property Investors Survey it provides a timely snapshot into the views of residential property investors. A few interesting and key insights from this year’s survey include: Confidence about buying property remains high. The proportion of investors planning to buy more properties rose to a net 69% of respondents, the highest since 2009, with …Read More

The 8 LVR exemptions no one told you about

Recently there has been major change to the LVR restrictions imposed on lenders by the Reserve Bank. This effects the amount that people can borrow for an investment property due to banks being limited to lending no more than 60% of the purchase price of an non-owner occupied dwelling. While on the face of it, this severely limits the amount …Read More

KiwiSaver and House Buying

First home buyers are realising how useful their KiwiSaver is in assisting them in purchasing their first dwelling. One of the benefits of our KiwiSaver is that accumulated balances can be used to purchase an owner occupied dwelling. This advantage will become more attractive the longer people are in KiwiSaver and the larger their balances are. If a couple is …Read More