We made it through to 2021! Many of us will be hoping for an easier year, after 2020 threw a few too many curve balls.
Are you one for New Year Resolutions? The end of a year and the beginning of a new one is a time for reflection for many of us. We’ve been looking back at 2020 – what went well, what we achieved, and what we want to improve on in 2021.
From July 1 2021, the default KiwiSaver fund will change from a conservative to a balanced fund. If you haven’t chosen which fund holds your money or how it’s invested, we urge you to do so!
We can talk you through your options, it’s a good idea to review your KiwiSaver regularly. If you are looking to buy a first home or retire in the not-too-distant future, you will want to be sure that you are making the most of your KiwiSaver.
If your income has changed you should check that you are on the correct PIR rate.
There is still more demand than supply! So many people are looking for property, and houses are going for much more than the RV and often much higher than asking price.
This is definitely very daunting if you are looking to buy, particularly if it’s your first home. We get it. Our best advise is to be prepared! Have a clear understanding of your budget – your day to day spending, and what you can afford to spend on a house.
As always, we are here to help you through the process. If you would like to book a meeting with Elise to discuss your path forward, you can do so on the Calendly button at the bottom of the page.
Banks and Finance
Interest rates are still low, with most of the main banks 1yr interest rates sitting under 2.5%, with the expectation that this will drop in the coming months
We will have to wait and see whether the forecasted 1%-2% drop in house prices will happen when the LVR restrictions come back into play in the next couple of months.
Many of the main banks have already reinstated the restrictions, with ANZ announcing in early December that a 40% deposit is required for investors. Other main banks are still requiring a 30% deposit, with some 2nd tier lenders still lending at 80% for the time being.
In mid December the RBNZ released it’s Briefing to the Incoming Minister (BIM) which gives an overview of the Reserve Bank’s current work programmes and key priorities.
The report highlights the Reserve Bank’s “commitment to work collaboratively with the government, fellow regulators, industry, and the community to achieve sound outcomes for the New Zealand economy” while holding the role of kaitiaki of New Zealand’s financial system.
Have a read here if you would like to know more about what was in the briefing.
An update from us.
After a very busy year we’re all enjoying a break from the office. Spending time with loved ones, taking time to do the things we love (for Elise that’s jigsaws), and relishing a slower pace for a couple of weeks.
We will be back next week and look forward to working with you in 2021. Onwards and upwards!
– Elise and the team