Six Rules to kicking Ass in Life:
1, You are your only competition, everyone else is either there to help or slow you down.
2, Earn, save then invest then spend.
3, Avoid people who are negative sap your time or energy or add no value.
4, If you don’t go after it don’t be shocked when you don’t get it.
5, Any failure is one more failure closer to your goal.
6, Those habitual things you do every day will decide your future.
Agree? Disagree? Did I miss any?
It sure looks like there’s going to be some changes in the property market in the next few weeks and months.
Interest rates are round 3% and looking to stay there for at least a year, the restrictions on loan to value ratios are being removed and banks have been told they can relax their lending criteria from the reserve bank.
Add to that consumer confidence levels, unemployment rates and tourism numbers at zero and you can see a lot of uncertainty and equal amounts of opportunity.
I plan to start exploring this and getting my “Ducks in a row”, first thing I need to do is get some funding so I called my mate Dave Windler to see if we can make any sense of it all.
Today I was lucky enough to have Shane Brockelbank from Professionals Real Estate on a Facebook live talking to me about how to market, buy and sell in the Covid-19 world.
I have great respect for Shane’s skills as a negotiator and agent and his insights at this stage are very timely.
Leave a comment or question on this video and I’ll answer it for you or have Shane do the same.
Every commentary at the moment, is talking about the Reserve Bank getting rid of the Loan to Value Ratio restrictions.
People are saying it is a good thing for the market, but nobody has yet to explain why.
What does this mean for the investor and for the market as a whole? Is this move enough to “save” the property market from the impending recession?
So I grabbed some paper and tried to map out how it would actually pan out for the average property investor with a home plus two rentals. I discovered some interesting results.
I’d appreciate hearing what impact you think this will have – so post something back on Facebook and tell me how you see this going down.
The removal of all LVR restrictions is going to be a massive change in the property market mainly for the first home buyers. This is actually a good thing for investors too.
In this quick video I explain why.
If you found this information useful please “Like” it on Facebook or better yet “Share” it.
Well, the answer is yes…..but, You would have had to have bought it in 2006.
This ad is nearly 15 years old.
The property was listed on the 3rd of March 2006 it sold for $383,000.
Then on the 8th of July 2010 it sold again for $417,000.
On the 30th of June 2016 it sold once more for $647,000 and according to Homes.co.nz it’s currently worth $805,000 as of May 2020.
So its been 14 years, 1 month and 28 days since this property has been advertised for $365,000 and it’s now worth $440,000 more than then.
It’s gone up in value by 109% in 14 years, not that bad at all.
During the last 5,173 days it’s gone up in value by $85.05 per day but that’s accounting for appreciation only.
I think we can assume the property was also tenanted during that time and market rent for this in 2006 was $420 per week or $60 per day.
Inflation of living costs would make it closer to $100 a day now but back then we didn’t have Airbnb or the inflated...
Writing this article terrified me.
First question: How old were you when you made your first million?
Yikes… I’m thinking, well this is going to be a contentious subject.
People have such wildly unrealistic ideas about money its really a worry.
I wrote this article as best I could “For the reader” trying to make it actually useful rather than self-serving after being inspired by reading Don Ha’s great article with the same questions the week before.
I hope you enjoy and get value from this and please leave me a comment on the Facebook page and share.
I’m currently sitting in my local cafe supporting local and like most people after riding the couch for 6 weeks during which we, banked subsidies, we watched Tiger King and we enjoyed old school Micheal Jordan.
We made a huge list of things that need to be done around the house then didn’t do any of them. We did what we were told and got the result we were promised, the country is awash with proud kiwis who flattened the curve.
So where’s this recession then?
I bought some Air New Zealand and it’s up 40%, I signed in to retail stores because I was told to and accepted the logic of that.
I looked at trademe for the flood of cheap houses, but nothing. Am I too early?
Please accept my deepest apologies if my rhetoric makes you uncomfortable as I know well that there are people having a really hard time, and I’m doing my part to get the country going again to help with that.
Most bank economists said we could expect between 10% and 15% decline in values,...
As kiwis have seen interest rates drop like a rock over the past year and with the reserve banks drop of .75 mostly all being passed on to home owners it’s a good time to take a look at the cost of your funding.
If you have lending of say $670,000 fixed at 5.25% until the 3rd of Feb 2021 you have another 317 days in that contract.
This lending will likely be costing you around $4,015 per month where as if you broke it you can currently get a 12 month rate of 3.05% (ANZ) which will make your repayments $3,195 per month.
On the face of it a saving of $8,610 over the term of the fixed loan, even if you went to a floating rate your better off by nearly $6,000.
To break that contract you will likely be required to pay a break fee from your bank, banks now have to show you the cancellation fee calculation and are only able to bill you for the “Actual” loss to them.
If your break fee on this lending came to $2,000 you would most likely be happy to break it, even at a break...
The Government announced that banks will be able to provide a mortgage holiday of ‘principle and interest’ for the next 6 months to alleviate the consequences of COVID-19 on homeowners. However, there has been confusion amongst homeowners, landlords and tenants and the purpose of this article is to show how this would actually affect your cashflow over the full period of the lending.
Mortgage holidays can be a powerful tool when used correctly, and we will explore the math behind this. It’s particularly stressful to the business owners and employees who are suffering a substantial drop in income and that is what this is for. The purpose of the government offering this extra collateral is to avoid mortgage holders being in a position where they can no longer make their payments. This way homeowners can still keep their homes.
But its worth noting that banks are largely getting a free pass on this as well because the government is gauranteeing 80% of any loses they...