Spring is all but here and the days are slowly but surely getting longer. As any proud dad I just had to post this pic of my beautiful wife and our daughter Madelyn, 5 Months old β enjoying a bit of sun in the park over the weekend.
With the new changes to Investment lending by the Reserve Bank essentially effective & in place now, I firmly believe the market will be easing in the next few months while the buyers (mum & dad investors) adjust to the changes.
However interest rates are low, home owners are still upsizing or downsizing and often need to sell their home in order to move on to the next. Therefore Iβm picking that there wonβt necessarily be price drops, but more likely a decrease in the βFrenzyβ that we were seeing earlier on in the year. To me this simply means a bit more stability in the market β not necessarily price drops.
Iβm therefore picking from now to early Feb 2017 will be an opportune time for 1st Home Buyers who are willing / able to take the plunge into home ownership!
So with this is mind this Monthβs focus is on 1st Home Buyersβ¦
If you are looking at getting into your first home or know someone who is this may just be the best news youβve heard in quite some time!
I now have access to twoΒ βWelcome Home Loanβ Providers (actual Banks not Credit Unions) that are offering a crazy low rate ofΒ 4.15% Fixed + $1,000 Cash Bonus*Β for 1st Home buyers under the NZ Government backed βWelcome Home Loanβ Scheme.
You may be thinking; βThose rates arenβt that special!? I see those types of rates advertised on TV all the time? This is true however all of the fine print reads βMinimum 20% Deposit/ Equityβ required among other things; like having your everyday banking switched, a credit card taken out or having to buy an over priced nasty bank insurance policy!
But here we have 1st Home Buyers having full access to these same great rates whilst only needing to have 10% Deposit!
Of course there are exemptions β not everyone qualifies for the Welcome Home Loan. There are price caps and income caps. In a nutshell $600k for an existing property or $650k for a new build and $85k income cap or $130k depending on whether you are on your own or applying jointly respectively.
