January News 2015

Happy New Year - 2015 has truly arrived and we are half way through January. School advertising is all around us, with some schools even starting back this week.

We trust you have all enjoyed some great weather and had some R&R time with friends and family. As the New Year starts some of us like to reflect on the previous year during this period - and do some planning for the year ahead.

If property queries are part of those thoughts for you, don't hesitate to make an enquiry or give us a call for a chat - or maybe you have young adults that are looking at wanting to buy their first home in 2015?

Below is the latest edition of '24seven Mortgages News' - something for everyone.
Trust you enjoy,

Lynn, Chrissie & Di

Lynn Houghton
Principal and Owner 24seven Mortgages
FreePhone 0800 247 667
Four Times New Zealand Mortgage Broker of the Year
Waikato / Bay of Plenty Region

Contents this month:

Is Real Estate/ Property Investment for You?
1st Home Buyers - 10% deposit!
Interest Rates - whats happening so far 2015?


Is Real Estate/ Property Investment for You?
Owning rental property has been a popular investment for many Kiwis over the years. The difference between an investment property and your own home is you can earn an income from your investment property. Returns from property investment come from rental income and from any increase in the value of property over time... however property investment is not for everyone. Below we have listed a few brief pros and cons:
• Some tenants are easier to deal with than others
• Some don’t pay their rent on time…(but lots do)
• Treat good tenants well and hang on to them - this keeps the property up to a good standard.
• Tenants are people who are actually paying your mortgage and looking after your property
• By owning an investment property you may pay less tax which can in turn help fund the property along with the rental income? (we would suggest you speak to an accountant)
• Historically property has gone up in value over the long term, even with dips in the market place,
• Your $$ can potentially be worth more than sitting in the bank while your tenants help fund the home.
• 1st time investor - maybe have your property managed professionally by a rental management company who can handle any issues that arise.
Where do you start?
There is no “one’ right way to invest in property, different investors have different strategies - work out what seems the right fit for you. Do some research - educate yourself about property investing so that you find out which strategy appeals to you most.

Contact your Mortgage Broker - 24seven Mortgages - or 0800 247 667
We can help you with:
• what price property can you afford? We just need some basic financial details to see if you are in the ballpark to qualify to purchase an investment property. Depending on the area where you live or where you may think of purchasing - you may be pleasantly surprised, given the lower interest rates available at present.
• When we work out what you can afford then we also take into account the expected rental income. The better the property income, the more you can potentially borrow.

1st Home Buyers - 10% deposit

If you or your family are in this category and hoping to purchase your 1st home in 2015 - there are 10% deposit loan options.
You can use a combination deposit of the following;
• KiwiSaver withdrawal (minimum of 3 year contributions)
• Cash savings
• Housing NZ Subsidy (minimum of 3 year contributions)
• Gifted Deposit (from family member)
KiwiSaver Tip
Saving can be a real bugbear for some - ie - 'as income rises so does expenditure' ..... for several of our young clients on good incomes and no dependants - they have increased their KiwiSaver contributions to 8%, as they know they then cannot touch their KiwiSaver account.
• How? contact your employer by letter, indicating your new rate (3%, 4% or 8%) or by completing a KiwiSaver deduction form - (download here) fill out and give to your employer
• Also you can make voluntary contributions
o How? You can make voluntary contributions (or lump sum payments) at any time, either directly to your KiwiSaver provider or through Inland Revenue.
NOTE: Once you've made a lump sum payment it's "locked in" until you're eligible to withdraw your savings. Employers are legally obligated to contribute only 3% regardless of employee contributions being 3,4, or 8 %.

Already Own your Own Home? there may be 10% deposit options available for you too - make an enquiry or call us to discuss

Interest Rates - whats happening so far in 2015?
Already we have seen some surprise movement down in 2 and 3 year interest rate specials. Some recently advertised have been 5.55% for 2 years and 5.59% for 3 years. Some lenders have led the charge but be careful of the fine print around some of these offers.
But if you like the look of some of those rates - contact us first so we can help you negotiate something tailored for you.

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