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Capital Concepts blog

Ease in LVR restrictions for end of year

Reserve Bank eases LVR restrictions, House prices remain stable and Overall mortgage borrowing is down nationwide. The end of the year is nearly here, and it has been an interesting one on the property front. As we all wind down for Christmas I have written a brief update on the property situation as we see it now that some of …Read More

Post-Election up-date

Post-Election up-date Spring has sprung, daylight savings has started and the election is behind us… well nearly! More houses are coming onto the market with the turn in the weather and the property market is headed for a much-needed boost. Interest rates are holding steady and in recent weeks we have even seen the reduction of two and three-year fixed …Read More

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

Own a free-hold rental property? A restructure of your mortgage could save you thousands [Case Study]

Richard and Michelle moved out of their existing home and turned it into a rental property. Using the equity from this property they were able to buy a new home. The equation The rental property which was paid off had a value of $550,000. Their new home cost $550,000 as well, and they borrowed the full purchase price. This meant …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

Mortgage interest rates at all-time low: Does this mean savings now or later?

I recently re-fixed an interest rate for some clients who had come off a rate of 6.40%. They were delighted to find that they could fix for 2 years and a rate of 4.20%, saving them nearly $500 per month. However, when we talked things through they decided to keep their payments at the same level. The result? They could …Read More