The first day of Spring – we are looking forward to enjoying the increased sunshine and daylight hours, even if we are in Level 2. COVID-19 continues to have an impact for us all to varying degrees, and this is going to be the case for many months to come.
The team at Building on Basics have taken the appropriate precautions to keep ourselves and you safe. We continue to perform nearly all services online if need be, and are available to support you with your financial requirements either face to face or online and by phone.
Bonus Bonds are being wound up, a long-time service and a good bit of history and fun. Though they have not been providing the returns for people for a long time, the idea of winning was the main driver for many people that had the bonds. This is just another indicator of the changing market and what is to come.
There continues to be a lack of supply of property in Christchurch and Wellington, and properties are continuing to hold value and sell at or above the council valuation.
There is fierce competition for good properties with most being sold in multi-offer situations. This can be daunting, especially for first home buyers. The best thing you can do is be prepared, so that when you see the property you want to buy you are in the best position to do so. We can help you with that.
Banks and Finance
Banks are nervous about income, and are asking for more information than ever before. They want to be certain that you are in a safe financial position before they grant lending.
For example, ASB is asking for written confirmation from the borrower/guarantors which includes answers to the following questions regarding their future earning capacity:
- Has your employer (or self-employed business) received any wage subsidy since March 2020 to the best of your knowledge?
- Are you currently on a wage subsidy or reduced hours?
- Has your income been impacted since March 2020 and do you expect it to be impacted by any further lockdown events?
- Are you aware of any current changes or restructuring in your place of employment?
The Reserve Bank
has enabled the banks to continue providing mortgage relief options for home owners without affecting credit rating. If you are struggling to pay your mortgage and haven’t get considered this option, please get in touch with us so that we can talk you through your options.
Negative interests are on the horizon, and the banks are preparing for this heading into 2021. With 2 and 3 year interest rates now below 3%, the banks are looking to encourage people to start spreading their loans out to spread their risk. For example, this could look like $100k split across two $50k loans; one a 1 year fixed term, and the other a 2 year fixed term. This needs to be done in conjunction with what else is going on in your finances, and as always keeping an eye on your spending plan is a very good idea.
An update from us.
Things are ticking along at the Building on Basics office, with plenty to get our teeth into.
Janneke is rocketing through her training and really enjoying the work she is doing here at Building on Basics.
This month marks a year of Eroica working alongside Elise, and we plan to celebrate with coffee and cake (as opposed to the usual coffee and coffee).
Elise is spending a few days away from the office this week, and heading to Wellington for some well deserved R&R as well as a few client meetings.
We wish you all the best, and please do get in touch with us if there is anything we can help you with.
– Elise and the team