News

NZ’s Building Industry is at Capacity

We all know that there are more buyers than sellers in the housing market at the moment. Build more houses – problem solved! Well, maybe not. New Zealand’s Building and Construction industries are at capacity, with many builders and industry specialists fully booked up to 12 months out. Even if they have capacity, many are being held up by supply chain issues. We have been reading a bit on the news recently about these supply chain issues. Carter Holt Harvey has gone so far as to stop...

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New policy legislation has not been finalised yet

As you know, on 23 March the Government announced some significant policy changes around housing. We wrote about it HERE The media is having a field day talking about the impact and getting the immediate reactions of those affected.  The simple truth is that the legislation has not been finalised.  The bright-line test changes are going to be fairly simple changes and the only potential “gotcha” is still to be confirmed - how they are going to determine the values of properties when you move...

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Newsletter April 2021

Hi there! April 1st - otherwise known as April Fools Day. Did you get pranked today?  March has been an eventful time in our industry, so we are looking forward to things settling down a bit in April. A couple of public holidays this month won’t go astray! Some of the big news of March was: 15th March      Financial Services Legislation Amendment Act came into force and all financial advisers and financial services providers (including banks and insurance companies) had to change their ways of...

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Government Announcement regarding Housing Policy

Big news from the Government yesterday! On Tuesday 23rd March, Prime Minister Jacinda Ardern, Housing Minister Megan Woods and Finance Minister Grant Robinson held a press conference and made some announcements regarding policy changes that primarily affect housing.  A summary of the announcements are: Effective from 27 March 2021 interest cannot be claimed as an expense for residential property investment, there are some exceptions for Property developers.  From 27 March 2021 existing...

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Newsletter March 2021

Hi there! It’s been a big few week, not least because of the reminder that Covid is still an ongoing situation here in Aotearoa as well as the rest of the world! We can feel a bit like we are in our own little bubble in NZ but it doesn’t take much to change that perception. We hope that you’ve been feeling ok about it, as the uncertainty can be distressing at times. The big news in our industry is that on Monday 15 March 2021 the laws governing financial advice in New Zealand are changing....

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When Covid messes with your house buying plans

Well here we are, wondering whether this current three-day Level 3 Lockdown for Auckland (and Level 2 for the rest of New Zealand) will be extended at the Prime Minister’s announcement later today. It’s an anxious time for many, wondering whether a stricter or longer lockdown will become a reality. We got through it before, and we can do it again – but that does not diminish the fact that many of us will be feeling a bit on edge and nervous about today’s announcement. What does this mean if...

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When the market is hot, and the rules change

The property market has been running hot since lock down finished, in May 2020. The introduction of very low interest rates has made it a prime market for investors and existing homeowners.  But, it hasn’t been great for everyone.  First home buyers have been finding it hard to compete with the investors in the market. There has been a lot of speculation about ways to combat this massive issue and help New Zealanders to buy their first homes. Low interest rates, lots of competition and limited...

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The Time to Get Finance

So, you’re looking to buy a house and you want to get finance.   You could walk into a bank, have a conversation with one of their mortgage team, and get finance in 2 to 3 days. This may or may not be the best financial solution for your needs. Working with an Adviser can take longer than going direct to one of the banks, but the benefit is that you will get a solution that works for you and is tailored to your situation. We look at the bigger picture, and as we have relationships with...

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Newsletter February 2021

  Hi there! Do you feel like you’re into the swing of 2021 yet? A month in, and the pace is picking up.  Here at Building on Basics, we seem to have started the year at the same run we finished 2020. Infometrics’ recent update suggests that the economy is in a much stronger position for the next 12-18 months than previously predicted. A year ago this COVID-19 thing was only just kicking off, and we’ve had a big year of unpredictability and guesswork to say the least. While this year is...

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Interest Rates – What is happening?

Will there be an interest rate war and how far will the interest rates drop?  Today the Co-operative Bank have issued the challenge with their offer of 2.09%  1-year fixed term for First Home Buyers borrowing over $200,000. This is fantastic for First Home Buyers with more than 20% equity, and is also available for Kainga Ora First Home Loans. For the last month Heartland bank have had a 1-year fixed rate of 1.99% and a floating interest rate of 2.5%.  Both are unheard of rates.  For the last...

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