In this Xmas issue…
Merry Xmas from the Team at AIM.
We’ve certainly grown from the father-son team we were only a year ago. We have a wide range of experience including residential and commercial property lending and personal insurance. Two of our staff will be manning the office through the Xmas and New Year break so don’t hesitate to call us if you need to. See below for contact details.
Interest Rates Less Interesting
Interest rates continue to stay low but we reckon we’re close to the bottom of the interest rate cycle.
We would recommend to anyone who is close to the end of a fixed rate period, or even if you’re only part way through, to talk to us about getting you on a rate in the 4’s and whether it’s worth paying break costs. You could just end up saving yourself a decent amount of money.
Capital Growth in Auckland and Elsewhere
The latest REINZ figures show Auckland’s median house prices rose 16.8% to $748,250 for the year since last October, but fell 3.0% from September. October’s QV House Price Index shows average prices rose 24.1% to $1,079,473 over the 12 months to October, pushed upwards by Auckland’s higher end properties dragging the average upwards significantly over the median.
REINZ Chief Executive Colleen Milne says the softening in the market along with new IRD and bank account rules have contributed to the drop in sales and prices as investors exit the market. Fewer homes are being sold under the hammer as sellers readjust to price demands of buyers, but for now other market factors are keeping prices buoyant.
Reserve Bank Restrictions
Restrictions on LVRs or Loan to Value Ratios first appeared two years ago. With the wild rate of increase in the property market largely driven by Auckland, these measures were tightened further.
From 1 November Auckland investors are required to have 30% deposit on new lending and the fund available remains low. Meanwhile lending for investors outside of Auckland remains at 80% LVR with an increase from 10% to 15% made available for >80% buyers.
Additionally banks set their own criteria and the issues can become fairly complex. If you are thinking about buying an investment property in Auckland or need to refinance you need to talk to us to make sure we can get your lending
Whilst median property prices and sales in most of the country have dropped compared to figures in September, the trend is still upward. REINZ figures show that the number of properties sold in New Zealand in the last 12 months was up 18.6% but down 4.1% from September. National median prices rose 7.0% to $460,000, also down from September by 5.1%.
Auckland typically skews those results, so without Auckland the national median price rose 8.4% to $370,000, which was up on September by 1.4%. The number of sales nationwide over $1 million rose 57%, with an increase in properties sold by auction by 47%
New AIM Team Members
Fraser is AIM’s newest recruit, with four years working as a Geophysicist in the oil and gas industry his international experiences give a fresh perspective of the New Zealand mortgage advising market. He is enjoying helping out young home-owners find the right mortgage to best suit their needs. As well as working for AIM he studying a Masters in Business at The University of Auckland.
Contact Fraser on (029) 127 5483 or email email@example.com.
The AIM Financial Services Team
|Kerry Alcock - Registered Financial Adviser|
M: 021 687 502
|Nick Alcock - Registered Financial Adviser|
M: 021 879 077
|Mark Miller - Registered Financial Adviser|
M: 022 183 5011
|Helen Dong - Registered Financial Adviser
M: 021 152 1969
|Waara (Toni) Varley - Registered Financial Adviser|
M: 021 176 1821
|Tahei Simpson - Registered Financial Adviser|
M: 021 507 073
|April Shen - Registered Financial Adviser|
M: 021 281 0666
|Matthew Lewer - Insurance Adviser and Registered Financial Adviser
M: 021 387 502