We Can Do A Second Mortgage

We have a few million $NZ for second mortgage placement.

Lenders are currently quite sensitive to high first mortgage amounts and priority figures and so Caveat seconds are starting to re appear as they did many years ago.

These are great options for people who have a deal that needs to be done and only need the lending for 12 to 24 months.

All deals on a case by case basis.

Product: Interest Only.

Term: 12 to 24 months.

Security: Residential Property.

Rate: 14% to 17%

Lvrs: under 75%

Max Amount: $100,000.

Right to pay down: Some lenders will allow principal payments.

This option is certainly worth a try and is very competitive with other available options out there at the moment.

Asset Lending Advances

This is a great option for people with lots of equity but you don’t meet the income requirements of the major lenders for what ever reason.

Security is via a First Mortgage and interest rates are from 8.75%

Security that can be used can range from Residential Real Estate to Farms to Commercial Real Estate.

Give us a try.

• The company tax for most firms falls from 30 per cent to 28 per cent next April, stealing the march on Australia and worth $340 million to business next year and $450 million the following year before falling to $305 million in 2013/14. This has the effect of spreading a general benefit over the country’s 360,000 companies.

• The savings industry gets a boost with the top tax rate for most portfolio investment entities (PIEs) including KiwiSaver accounts being cut from 30 per cent to 28 per cent. The tax rate for savings vehicles – unit trusts and superannuation funds – will also fall. The changes will cost the Government $15 million in 2010/11, rising to $60 million a year by 2013/14.

• Personal tax cuts from October 1 will fuel more spending. Someone on the average wage of $50,000 a year will get an extra $29.40 a week, reducing to a net gain of $13.70 with the new 15 per cent GST rates.

The areas which will miss out according to the Herald

• From next year there will be no depreciation deduction allowed on buildings with a useful life of 50 years or more for commercial and industrial buildings. This will be introduced from April 1 and raise $455 million a year from the commercial sector by 2013/14.

• Rental houses will also lose the ability to claim depreciation and this will cost landlords $235 million.

• Under changes to thin capitalisation rules foreign-owned companies will be able to claim tax deductions for interest payments on debt of only up to 60 per cent of their local asset value rather than 75 per cent at the moment. This will raise $200 million next year

So thats just a few of the pluses and minuses on the budget.

You can read the whole article here http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=10646413

There was a flight from currencies that benefit from increased risk appetite such as the Australian, Canadian, and New Zealand dollars, and the Kiwi gave….

catch the rest here at http://tvnz.co.nz/business-news/kiwi-dollar-tumbles-3561759

Obviously this is a great topic to focus on because there is a whole lot of misunderstanding, myths and untruths about the property investment market and it is easy to make bold statements like “the property market due to crash because of the budget”…. what a load of old bollocks.

Yes there will be some people who will struggle with keeping their investment property because the ability to claim depreciation put some money back into their pocket which allowed them to pay the mortgage. Without this injection of cash from the government these folks will not be able to maintain the mortgage and will need to sell. That’s a fact. However think about this…will the small numbers of people (and I mean relative to the overall property market) who must sell be enough to cause the Real Estate Market to tumble? I don’t think so…..

Read the rest of the post here at NZPIS.CO.NZ/The-Day-After

• Real estate appears weak with few buyers;
• Things appear to be on hold until the budget in May due to the tax changes;
• The comments from the survey in general suggested that the economy was improving slowly.

There is a large volume of houses on the market for sale but this is not translating into higher sales volume.  It is believed the low sales volume, although higher than the record low in January 2010, is “fluctuating” as many people simply do not know where the property values are going and so are reluctant to commit.  It is believed this reluctance is due to a fear that they will over commit themselves, especially if mortgage interest rates increase. Those buyers in the market are believed to be owner occupiers

The PCI provides a value between -10 (strong downturn) and +10 (strong upturn) in the housing market.  As its base data it measures the number of houses sold, the time it takes houses to sell and the changes in prices

This is almost three times more than what was required in 1960.  This is based on a 40 hour week, and not allowing for spending or taking into account interest.  This equates to 8.5 years

In 1960 the average house price was $6,639 with the hourly wage rate of $1.05 and to pay it off would take about 3 years according to Bernard Hickey of interest.co.nz.

We have quality procedures in place to ensure we fully understand your current financial situation, goals and dreams.

Our process differs from others in that we carefully analyse your complete financial position in terms of understanding your goals and needs, while highlighting your financial planning issues, all without cost or obligation, ensuring you have time to arrive at an informed decision to employ our services.

We regularly review your situation to keep your informed and to build the client relationship we consider so important.

Our system brings into clear focus precisely what is realistically feasible. The fact that we do this at no cost initially is testament to the fact that we retain our clients for the long term. Building wealth is one thing but what’s the point if you don’t have personal goals and dreams as well.

The Financial Planning Process is made up of 6 steps.

1. Find a Professional Investment Services Wealth Coach

Contact your local Professional Investment Services Office and a registered Wealth Coach near you will be in touch to arrange the initial consultation.

2. Checklist: Preparing for the first interview

Prior to the first interview, it is recommended you consider your financial and lifestyle objectives for the short, medium and long term.

These may include:

*Wealth creation

*Savings capacity

*Income requirements present & future

*Retirement planning

*Lifestyle needs

In addition, we recommend you compile the following documents (listed below) for the initial interview to enable your Wealth Coach to obtain a clear understanding of your present financial position.

*Personal investment details including investment and rental statements

*Tax returns

*List of liabilities eg. amount and applicable interest rates

*Additional assets

3. Initial consultation

On first meeting with a Professional Investment Services Wealth Coach, they will provide you with a disclosure statement which outlines their;

*Qualifications

*Responsibility for advice given

*Restrictions applying to advice given

*Fees and charges

*Complaint resolutions schemes available

*Privacy information

The first meeting objective is to ascertain current position, expectations, future objectives and risk profile. This is achieved by asking a series of personal and lifestyle questions supplied in a client data form.

At the conclusion of the meeting, the Wealth Coach will seek your commitment to prepare written recommendations that addresses your financial situation and will detail any fees that apply to this process.

4. Written Recommendations

After preparing the written recommendations your Wealth Coach will meet with you to go through it step by step and answer any questions that may arise. You must also confirm that the details within the written recommendations are correct.

At the conclusion of this meeting, your Wealth Coach may schedule a follow-up to answer any further questions.

5. Implementation

If you are happy with the recommendations and wish to these, your Wealth Coach will ask you to sign an ‘Authority to Proceed’ that formally documents your consent.

Your Wealth Coach will assist you with the implementation process including completing forms and lodging the applications.

6. Review and service

Maintaining ongoing review and service of your financial plan is vitally important to achieving the optimum results in your financial future.

Many variables in your life can change over time impacting on the suitability of your investment portfolio.

At a minimum, Professional Investment Services recommends annual review of your financial plan to ensure it continues to meet your needs

I believe house prices, in the main centres, will continue to appreciate, especially Auckland which has already started to occur. This is due both to supply and demand. There are less new dwellings becoming available as there are fewer being built (especially in the apartment market), demand is increasing due to higher immigration figures, more Kiwis returning home and a natural population increase.

Interest rates will go up but in the second part of the year only as the Reserve Bank honors it’s commitment to the nation when it said it would keep rates low. The amount they go up all depends on the recovery happening, how strong it is and if unemployment is starting to fall.

Finance will be difficult to obtain for self employed, businesses and construction projects due to the demise of virtually all second tier lenders. This is a serious issue for the country and will hinder our future growth.

Each month the international credit crisis moves further into the background and hopefully next year it can be consigned to part of global economic history.