Like mortgage brokers, insurance advisers typically get paid a commission from the insurance company when they help you purchase the right type of cover for you. Good mortgage brokers won’t just ask you what type of mortgage you want, they’ll also ask you what you want from your portfolio. Then it’s a matter of finding the type of loans that will best suit your goals. In this instance, an interest-only loan on the investment can often mean paying less tax to IRD – as opposed to paying P+I for both properties. If you request a 30-year principal-interest mortgage for an investment property, and they approve you, that’s what you’ll get. The end result is that by trying to do it themselves some investors aren’t able to secure finance for their investment property.
If you’re an offshore RLWT personand have a sale subject to the bright-line property rule, a withholding tax will be deducted at the time of the sale unless a valid certificate of exemption is held. This will also determine which set of rules relating to the main home exclusion will apply to your property. The rising cost of building materials may leave home owners nationwide in the lurch as the risk of under-insurance grows. First home buyers have more of a chance now that more properties are being sold by other means, instead of auctions. “We continually felt like every time we made an offer and it wasn’t accepted, something better came up and I feel like that’s the trend that we’re getting into now. We are entering a buyers’ market.
CoreLogic chief property economist Kelvin Davidson said this year was looking to be quieter than last, with reduced sales volumes, longer periods to sell, reduced price pressures and tighter mortgage volumes. “They might have been over leveraged, or had too many properties. This gives first-time buyers a huge opportunity.” CoreLogic data shows that median house values have fallen by 150 in the last three month in 150 of the 900 suburbs in the country. This is a sign of a slowdown in the housing market.
“The increases in interest rates over the past nine months are a key reason for this, with most terms now more than 1.5 percentage points higher than their low point. Anyone negotiating that in their budget could be looking at an extra $40 per fortnight for every $100,000 in debt they’re refixing.” “Much of the concern for future vulnerability is for the equity position, and ability for recent home buyers, and in particular first home buyers, to pay higher mortgage repayments,” Goodall said. A second factor that could reduce prices is the increasing number of homes on the market.
Bruce Patten, a mortgage adviser from Loan Market, states that the CCCFA changes will not be in effect until June and that the market will remain suspended until then. Read more about Candace Williams Ray White here. The First Home Loan and Grant Auckland price caps are well below the region’s median of $1.2 million. “It used be that $40,000 to $50,000 would get you to a deposit. But that is no longer true. The national median is $885,000, and many homes are around $1 million.
