Wow, it’s almost the end of 2020. We are flat out in the office with a mountain of applications to get through. It’s a good kind of busy!
It’s been a big year for our business with lots of exciting leaps forward. New staff, new website, new communities to work with – it’s all taking off.
We are so grateful to be working with you, our clients. Making your financial dreams come true is what we’re here for and it is super satisfying to see you making positive steps towards your financial freedom.
The IRD implemented a new system in April, which has resulted in Employer Contributions to your KiwiSaver being slower to transfer across. They are working to improve this.
If you have had a pay rise or a change of income, it is a good time to review your PIR rate. You can do this in your KiwiSaver account.
If this table doesn’t make sense we are here to help translate. You can also click on the table to be taken to the IRD website.
The lack of supply of properties coming onto the market is still driving the price boom. With the LVR restrictions being reinstated, investors are going to be required to have a 30% deposit. This may reduce the numbers of investors able to snap up properties which may give some first home buyers and Owner Occupiers a chance to catch their breath.
If you own a rental property it is worth remembering that as investors/landlords you are required to meet all the new Healthy Homes Standards by June 2021. These are specific and minimum standards for heating, insulation, ventilation, moisture and drainage, and draught stopping in rental properties.
Banks and Finance
Interest rates are still low, and banks are still asking a lot of questions before offering lending. We’ve said it before – make sure you know how much you have coming in and going out, get that spending plan (aka Budget!) in order before you need to apply for finance.
The floating rates are coming down with some hanging around 2.8% so we are expecting yet more movement and to see some fixed rates with a 1 at the front, possibly between 1.75-1.5%.
If you are feeling stressed about the Christmas season, don’t let it get away on you. Make a plan for your spending, and get in touch with us if you are feeling overwhelmed by the extra costs which can pop up at this time of year. We can help you make some good decisions.
On 11th Nov the Reserve Bank announced that they are looking to deploy a Funding for Lending Programme with the main 1st Tier banks. The details of what this will look like are still being worked through.
The idea is to provide cheap lending to the main banks for them to keep interest rates low, and to reduce the banks reliance on offshore funding sources and depositors. Check the RBNZ article.
The LVR restrictions that were meant to be in place until May 2021 are going to be reintroduced in Feb 2021, and the main banks have reactivated them immediately. We recently wrote a blog post about this, have a read.
An update from us.
Elise is powering through the Investment strand of her training, and is on track for the changes coming into place next year.
Janneke has finished another assignment and is looking forward to a break!
Eroica is gearing up for the busy Christmas season at her other job, and will be using her time at Building on Basics as a great excuse for a sit down!
This has felt like a very long year, and yet somehow it still feels unbelievable that it’s December already! We hope you are all coping with the wind up to Christmas, and hopefully there will be a well deserved wind down after that.
Until next month, take care and enjoy some festive times with your loved ones. Please do get in touch with us if we can help you in any way.
– Elise and the team