Will Labour disrupt the housing market?

November 2017

Will Labour disrupt the housing market?

There is naturally speculation over the impact a change of government will have on the housing market. We’ve already seen a significant change with foreign buyers now restricted to purchasing new builds and Labour committed to their Kiwibuild project to build 100,000 affordable homes over the next 10 years.

It seems we’ve been due for the housing market to cool off, for several years people have been predicting an end to the Auckland price boom. But will it really be Fortress NZ? Will prices drop between 10% and 13%? It seems unlikely. I think rather than a precipitous drop in values the next 3 years are more likely to see flat growth or much slower than more recent history (i.e. 3-5% growth as opposed to 10% plus).

A major downturn seems particularly unlikely in Auckland where updated data suggests the cumulative housing shortfall has reached 25,000. Where you have continued demand and constraints on supply it greatly reduces the likelihood of a significant downturn. I believe the continued drop in interest rates since the onset of the GFC (from touching 10% to down below 4% in some instances) has had a greater effect than is given credit for. Interest rates will continue to have a major impact on prices and I will of course continue to keep you informed regarding any movements.

Referral Rewards Programme Success.

Thank you for the great referrals from last month’s launch of our referral rewards programme. I look forward to sending sweet Prezzy cards your way soon. If you missed our last newsletter, here are the details below.

Please email me your referrals from 1 October through to December 15 2017, where any client referred to SuperCity Mortgages & Insurance that leads to a drawdown in lending before 30 June 2018 will earn the referrer a Prezzy Card to a value range between $100 – $1000*see terms and conditions below.

Remember, clients with existing mortgages who would like their lending managed by me could also qualify. So if they would like a mortgage review to see if their bank is looking after them, by all means, send them my way as I would love to help them out and give them advice.

The person who provides the most referrals in this period to SuperCity will also receive a bonus $500 Prezzy Card.

  • Value of the Prezzy Card will vary dependent upon the $$ value of the business to SuperCity. Any information we hold on behalf of our clients is entirely confidential which is why we cannot provide specific details as to how the Prezzy Card $$ amount is arrived at.

Making dreams come true for first home buyers.

One of the positives to come out of the LVR restrictions has been the real opportunity this has presented for first home buyers. We’ve helped more firs home buyers in the past three months than we did in the entire first six months of the year.

Kiwisaver celebrated its 10th birthday this year and fund balances held on behalf of New Zealanders is now in excess of 40 billion. A real success of the scheme has been helping people into their 1st home with thousands of Kiwi’s withdrawing from Kiwisaver funds for this purpose.

Knowledge is power and at SuperCity we’re tailor making deposit plans for people that include some or all of the following strategies; turbo charging those Kiwisaver accounts with contributions over the minimum, saving plans, assistance where available from mum and dad, HomeStart Grants, affordable home schemes in Hobsonville, Whenuapai and Glen Innes the list goes on… If you, your colleague, family member, friend want to buy a house but don’t know how to save the deposit I welcome the opportunity to help you put together that plan to make your 1st home dream a reality.

Better rates than going direct.

It’s not only first-home buyers who are borrowing at the moment. We’re also helping plenty of homeowners with lending for renovations and relocations. Relocating to live inside a different school zone is becoming an increasingly important factor which is determining the activity of selling and buying a new house.

Banks have relaxed slightly on bridging finance, so if you have a solid amount of equity in your home it’s worth asking the question, with listings so thin on the ground. The lending rates are highly competitive at the moment: under the right conditions we’re able to secure rates of 4.19% fixed for one year, 4.30% for 2 years.

Purely off the back of SuperCity’s now immense bank relationship buying power, I consistently source better rates than you can get by going directly to your bank. In late October a client came to us having already negotiated with the bank – he’d been offered 4.49% for one year fixed. Even though he’d signed the paperwork, we were able to sort out a small break fee ($119) and get him a rate of 4.25% that saved him $1,392 a year in interest payments. So please don’t get suckered into clicking an online ‘refix your loan checkbox’ and paying higher rates than you should. Give me a call, whether you’re talking to the bank, signed with the bank or simply thinking about buying. I can get you a better deal than you can get on your own.

When SuperCity Mortgages started, only 14% of all lending was done through an adviser. Now that rate has increased to 40%, and mobile mortgage managers are now an endangered species. There’s a great reason for that – we deal with every bank and know the nuances between them all. Therefore, one application with me rather than meeting five different mobile managers to find the best solution for your needs is clearly the winning approach.

Young mum’s skin cancer scare.

Recently one of our clients, a 33-year-old mum, took one of her three young children to the doctor. He noticed her scratching her thigh and asked her what the problem was; he took one look at her mole and sent her straight to the specialist. Two days later she was in surgery and later diagnosed with early stage skin cancer. We helped her with her claim and her medical cover paid for her surgery and medical treatment costs; and her trauma cover paid a lump sum which helped bridge the financial gap, enabling her husband to take time off work so he could support her throughout her recovery.

Did you know?

Trauma covers you if you’re diagnosed with life threatening cancer, but did you know that if you’re diagnosed with a lower grade skin cancer, you may still be able to claim under your Trauma benefit to a partial payout.  It’s always worth checking with us.
New Zealand has one of the highest rates of melanoma in the world, if detected in the early stages, most melanomas are curable. Therefore, we recommend investing in annual mole map which is usually around $250… that’s a small price to pay for your health and peace of mind.

Christmas and holidays are just around the corner (where did this year go?). If you’ve had any changes to your situation or if you would like to check your protection plan is all up to date, please do call so we may assist you.

JAIME JAMES
Managing Director
SuperCity Insurance
021 527 069

Contact Joel
 

Joel Oliver
Managing Director

Level 4, 272 Parnell Road, Parnell, Auckland 1052
PO Box 37303, Parnell, Auckland 1151

0800 INVEST  I  021 884 181

www.supercitymortgages.co.nz
joel@supercitymortgages.co.nz

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