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 – 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 I’m picking that there won’t necessarily be price drops, but more likely a decrease in the ‘Frenzy’ that we were seeing earlier on in the year. To me this simply means a bit more stability in the market – not necessarily price drops.
I’m 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 Month’s focus is on 1st Home Buyers…
If you are looking at getting into your first home or know someone who is this may just be the best news you’ve heard in quite some time!
I now have access to two ‘Welcome Home Loan’ Providers (actual Banks not Credit Unions) that are offering a crazy low rate of 4.15% Fixed + $1,000 Cash Bonus* for 1st Home buyers under the NZ Government backed ‘Welcome Home Loan’ Scheme.
You may be thinking; ‘Those rates aren’t that special!? I see those types of rates advertised on TV all the time? This is true however all of the fine print reads ‘Minimum 20% Deposit/ Equity’ 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 – 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.