|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.