Hello!
During the lockdowns we learnt what was important to us. Friends, family, the way we use our time, the type of work we do.
Regardless of what we realise is important, there are the nuts and bolts of life that we also need to consider and manage. I am seeing a range of clients in a range of situations – Some who are in good jobs with steady income, others who are going through a restructure. Those looking to invest, and others looking to deal with debt.
Surprise, in September the announcement came that New Zealand is in a recession. This will have an impact on us all, and we will need to deal with these impacts on a personal level. If you need assistance to understand what this means for you, please get in touch and we can work through your situation and help you to make a plan.
KiwiSaver
A recent ASB Survey* found that 40% of the respondents who are approaching retirement said they were “very” or “extremely” prepared for retirement. That indicates that 60% of the respondents need help to understand their retirement needs and to have a plan to deliver on their retirement goals.
KiwiSaver is just one aspect of your retirement planning. If you want to better understand how much your KiwiSaver will give you in retirement (based on your current contributions) then check out this calculator. If you wish to discuss your personal KiwiSaver, we can make a time to have a chat.
How much will my KiwiSaver pay in retirement?
In KiwiSaver news – Generate today have announced a partnership with the Salvation Army to invest $15m into social housing.
*based off responses from 1,254 ASB Round Table members
Property Market
You won’t be surprised to read that there continues to be a high demand for property in the market. More properties are coming onto the market as part of the usual Spring trend, and multi-offer situations continue.
As the mortgage relief options come to an end, the banks are predicting that more properties will be coming onto the market. Some owners will need to offload properties where there is no solution in sight for making payments, either interest only or principal and interest.
The CoreLogic Q2 report indicates the start of these trends for what we can expect over the 6-12 months
Banks and Finance
The Banks are working on new hardship options. Making sure that you can service your existing debt as well as any future debt is the key focus.
The talk of negative interest rates continues and ANZ is predicting that by April 2021 there will be interest rates of around 1.75%. Talk is talk, and you need to work with your current situation and your future plans. Figuring out whether to go with a floating loan in anticipation of these low rates, or re-fixing now at the great rates of around 2.49% is going to depend on your personal situation.
Banks are taking between 10-21 days to assess applications which is a bit terrifying when you are waiting to buy a property and go unconditional. Not all banks are doing pre-approvals and we are looking at multiple options for people as we assess your needs.
Both investors and first home buyers are active in the market. Whichever of those you are, we can help you to navigate the house buying process.
An update from us.
We’re enjoying Spring, despite this week’s cold snap. Elise may need to focus on some renovation work as the conservatory roof almost lost another panel in the recent storm, the bonus is that it has forced the declutter of the conservatory.
Janneke had her birthday and celebrated with cake at the gym (!), and Eroica celebrated 1 year with Building on Basics.
Elise is starting to work with the Colombian community in Invercargill, which is an exciting opportunity. Google translate is muy bien.
One last thing… With the general election only 16 days away, change is in the air. Make sure you vote!
Until next month, take care and keep moving forward. Please do get in touch with us if we can help you in any way.
– Elise and the team
