|Welcome to March's Capital Comment...
As the days get shorter and colder, the heat continues in the housing market with sales continuing to hit record highs and no sign of slowing down. The number of listings in the Wellington Region seems to be remaining pretty constant (not overly high but not alarmingly low) which is a good sign going into April. Inevitably stock level will drop over the coming months but it will be interesting to see whether prices continue to increase or whether the winter market acts as a brake of some sort.
Medium to long term rates have some pressure on the upside so we are seeing some clients looking to split their lending again (there hasn't really been a need in the last few years) but many remain wedded to 12 months to retain flexibility and the expectation that staying short will prove to be cheaper overall in the long term. The key is to set repayments as high as comfortably possible so that when rates do go up, you are already paying more than the minimum and so can absorb the higher rate (albeit the loan term will extend slightly). We are always happy to discuss options if you would like to give us a call.
This week saw the new code of Professional Conduct for Financial Advice Services come into effect. The code sets standards of competence, conduct and client care for the whole financial advice industry. We don't expect our clients to notice too much by way of change but again, we are always happy to answer questions.
Congratulations to Team New Zealand on their win in the Americas Cup and thanks to our awesome referrers who have referred their friends and colleagues and will be rewarded with a $100 Prezzy Card thank you gift. Have a great weekend!