Mortgage News June 25, 2021
Welcome to June's Capital Comment...

A very quiet month in the property market which is reasonably standard for the time of year. Yet more rumblings from the Government and Reserve Bank as to how they can further restrict investors activity in the market. It seems that they have been singled out as the sole reason for the high property prices which is a little odd, especially with the need for rental properties to house those that aren’t able to or who don’t want to own a property. They have to live somewhere!

Some of the banks have come out with some new (and pretty good!) policies over the last month or so. Moves to make building a home more affordable and making it easier to borrow if you have offshore income are a couple of positive examples. Both are welcome additions to our arsenal to find a good solution for clients!

Interest rates took an interesting turn this month. The medium to longer term rates went up slightly which was expected but the 12 and 18 month rates have come down a little which was a a surprise. For me, with the gap widening between 12 and 24 months (or longer), the maths suggest that 12 months is the right option but maths doesn’t make you sleep better at night and so for many people, the longer 36 months may be a better option. As always, we are happy to discuss options with you!

I always take the opportunity to thank those of our clients who refer their friends, family and colleagues to us. We estimate that about 90-95% of our business comes from repeat business or referrals from within our client base. We are so grateful to all of you who make that happen and so we thank successful mortgage and risk insurance referrals with a $100 Prezzy Card – and we love sending them out!

Take care and good luck to the Black Caps in the World Test Championship Final…hopefully the weather isn’t the winner.

Has Property Growth Peaked

The New Zealand housing market may have reached an intermediate peak, as market conditions and Government restrictions help to dampen growth. Average property value growth was up 8.8% for the quarter to the end of May based on a rolling average, which is lower than the month before. While prices are still rising sharply across the country, the rate of growth is slowing and the trend seems likely to continue.

Is NZ Outperforming AU

As the world recovers from the health and economic impacts of COVID-19, some nations are on better footing than others. Australia and New Zealand both performed well during the pandemic, with geographic isolation and good governance combining to the envy of many other countries. Prime Minister Jacinda Ardern recently said that New Zealand is "outperforming Australia economically", as both nations attempt to manage sensitive economic conditions in the wake of the pandemic.

Are We Getting Enough Sleep

Sleep is an essential part of life that affects every aspect of our health and well-being. Good quality sleep supplies waking energy, supports workplace performance, and promotes good health outcomes throughout life. Despite the importance of sleep, however, a significant percentage of the population don't get enough of it. Let's take a look at modern sleeping habits, including the effects of technology and caffeine. Good sleep is the key to good health, and awareness is essential in order to make positive changes.   


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> In This Issue...
1. Welcome to June's Capital Comment...
2. Has Property Growth Peaked
3. Is NZ Outperforming AU
4. Are We Getting Enough Sleep

> Contact Us
Kit Jackson, Gareth Humphreys and Tracey Verrenkamp

Phone: 04 495 5903

344 Tinakori Road
Thorndon Wellington 6011

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