Issue 2017 / 13 28 July 2017
Welcome to the thirteenth fortnightly General Finance Mortgage Commentary for 2017. We aim to keep you informed on developments at General Finance Home Loans and the mortgage market in general.
The Money Market
This morning (9 am on 28 July 2017) the money markets were at the following levels:
Official cash rate 1.75% (unchanged)
90 day bill rate 1.94 (down from 1.97%)
1 year swap rate 2.03 (down from 2.05)
3 year swap rate 2.41 (down from 2.49)
10 year bond rate 2.95 (down from 2.98)
NZ/US dollar 0.7489 (up from 0.7258)
Land Agents are Disclosing More
When you are purchasing a property, land agents now have a greater duty to disclose more information about the property. In order to get all this information, it is important that you ask the right questions. These include: are there any weather tightness issues?, has all the work on the property been consented?, why is the owner selling?, are there any issues in the neighbourhood? Information is a two way thing - buyers need to be proactive, rather than just relying on an agent’s disclosure.
Changes in Accommodation Trends
There is talk that the increasing shortage of rental properties, is due to the likes of Airbnb and other short term accommodation providers. Owners of rental properties, in better areas that are close to public transport and various city amenities, are deciding to let their properties for short durations, rather than letting them to long term tenants. This type of accommodation has rapidly grown in the past few years, and some landlords are making more money and/or meeting more interesting people from offering this type of accommodation. We believe, as more baby boomers retire and travel more, the demand for short term accommodation will only increase.
Insulation
The current Warm Up New Zealand healthy homes insulation grants scheme, which has been offering up to a 50% subsidiary to low income earners and landlords, was scheduled to end on 30 June 2017, has now been extended for another year. We understand the take up of the scheme, so far, has been low but landlords may wish to consider this offer. The law is shortly to change and rental dwellings will be required to be insulated. Landlords, we believe, will find it easier to let a property that is insulated, rather than one that is not.
Money to Invest?
As our business continues to grow, we are looking for funds to lend. For every loan that we advance, we require money from investors to fund our business. Our rates are competitive. We offer 5.50% for two years and 5.75% for three years. These are better than what the banks are offering. We do have monthly payment options as well.
Mortgage Interest Rates
For updated mortgage interest rates, either for new business or applicable to your existing loan, please contact your Lender (below) or the General Finance Limited Loan Administration Department.
As everyone's personal circumstances are different and the tax treatment of their affairs is always determined by their own circumstances, you should not act on any comments made in our Commentary without obtaining your own independent professional advice.
General Finance Limited is a Registered Financial Services Provider, with registration number FSP8882.