Newsletter
February 2022
We trust you all enjoyed a well-deserved break over the New Year period and that 2022 has started on a positive note. We have been busy adjusting to the new lending rules introduced in December (CCCFA) and have certainly been fielding our share of bemusing questions from the lenders. These questioning everything from grocery bills to lotto tickets and even saving behaviours. We do recommend getting in touch well before your next intended purchase or top up to allow us to sensibility check your requirements before we present the formal request to the lenders.
The housing market itself has seen a little softening in December and a number of commentators are expecting more to come through 2022 with higher interest rates and tougher credit conditions having an impact on affordability and sentiment alike. In any market there are good buys and bad buys to be had. The savvy investor will always do well in the long run and holding one’s nerve can really pay off. In the wise words of Warren Buffet ‘Be fearful when others are greedy and be greedy when others are fearful’.
In this edition we provide an on the market example of a new build property with the aim of giving you the tools to analyse a new purchase.
What’s on the market?
The market ran hot through 2021 with the ‘average’ price for a New Zealand property creeping up towards $1m. While many of us would like to explore investment property options, a lot of us don’t know where to start. Here we explore an advertised ‘live’ property so you can see how the numbers could stack up for you.
Meet the team
Final Word
“We have two lives and the second begins when we realise we only have one” Confucius.
Remember that property is a long run vehicle for wealth creation and can be tremendously financially rewarding over time. Some get nervous when the media paint a negative picture for house prices and can pull the ripcord prematurely.
Property has a high cost of selling (plus effort for buying/replacing) while compounding interest and inflation play a big part over time – both eroding the value of the mortgage while pushing up the rents. I don’t meet people who are glad that they sold a property 10+ years ago, but I’ve met plenty that have regretted it! Do weigh up the options carefully and work out your long term financial plan.
Malcolm Knight
Director, Financial Advisor