More great news for first home buyers! Govt proposes 0.5% reduction in 1st Home Loan insurance premium.
The Reserve Bank of New Zealand proposes to ease LVR restrictions, making more funds available for owner-occupiers and allowing investors to access up to 65% lending. The new policy is scheduled to be implemented from 1 June 2023, pending consultation with registered banks.
*The link is in the comments below
TY Investment Group 天意投资 updated their address.
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Mortgage rates have never been this low!!! 1.68% from ANZ for new builds.
www.stuff.co.nz/business/money/300343375/anz-offers-168-per-cent-home-loan-rate
ANZ offers 1.68 per cent home loan rate
www.stuff.co.nz
Interest rates rising as early as September next year according to RBNZ.
An increase in debt without a correlating increase in income is spurred by low interest loans, reduced servicing margins and low LVRS. All which we have seen in the past twelve months.
Inflation is coming!
Dropping the short term and raising the long term? Westpac delivers a 40 basis point increase in their 5 year fixed rate.
The author implores that the government pay close attention to rising rates as investors, already reeling from the tax changes, are likely to sell up at the same time. This would have the effect of hammering down house prices hard. See link for more info.
"The lesson from the 1990s was that tightening policy too late in the face of rising inflation pressures meant interest rates (and the exchange rate) had to go higher for longer, as policy really struggled to rein things in.
"It’s possible that happens again, but we’d note that any increases in interest rates are likely to impact things pretty quickly, given both the tax change and household debt levels."
Auckland waterfront apartment sells for $5,000. How did we get here? Read the article for more information.
While deposit insurance is great. Who is paying for it should we need it? There was supposed to be policy that should have been implemented in early 2020 to ensure banks could provide cover for depositors, but this was built on the premise the banks would keep enough funds in order to guarantee...This policy was also delayed due to pandemic. It is hard to imagine the banks have any capital to do this today considering they have underperformed since 2020.
So how are they paying for it? Well, the quote from this article points out “The reforms also provide important new enforcement tools which will help us to manage emerging issues, and an enhanced crisis management framework to effectively respond to any failures and minimise the impact on the financial system, the economy, and society."
Are these new tools simply more printing?
Negative real rates are likely to have banks reevaluating their interest rates. It is no surprise to see this finally happen. Read below for more info.
"LONDON (Reuters) - Emerging market central banks delivered five net interest rate hikes in March, marking the end of an easing cycle which started in 2019 as central banks in the developing world grapple with rising inflation pressures.
Across a group of 37 central banks in developing economies, policy makers in Ukraine, Georgia, Brazil, Turkey and Russia raised interest rates, many delivering bigger hikes than expected. This follows a total of two net interest rate cuts in February.
EM central banks end easing cycle, hike rates for first time in two years graphics.reuters.com/EMERGING-RATES/azgvojxxnpd/chart.png
For an interactive version of the graphic, click here tmsnrt.rs/3jSycdO
Analysts said the recent rise in global bond yields had pushed some central banks into normalising record-low interest rates.
"We expect several LatAm (Latin American) economies to start to tighten as well," said S&P Global Ratings analysts in their monthly report.
"Curves are pricing in hikes over the next 12 months in several other countries, including Colombia, Chile, Mexico, and the Philippines (and more hikes in Brazil and Russia)."
The tally between rate cuts and hikes across the group of 37 according to Reuters calculations has been negative or zero since February 2019. This has been the longest easing cycle since the 2008 financial crisis and the 2010 euro crisis.
At the peak of the easing cycle in March last year, 27 of the 37 central banks cut interest rates, trying to protect their economies as the fallout from the coronavirus pandemic rippled through markets around the world.
(Reporting by Karin Strohecker; Graphic and data reporting by Ritvik Carvalho; Editing by Nick Zieminski)"
Some important changes are coming to Kainga Ora First Home Products. Do you qualify for a first home Grant or Loan?
Changes to First Home Products
www.hud.govt.nz
ASB economists says rent controls benefit incumbent renters, regardless of their financial circumstances, but 'pretty much everyone else' bears costs
To all INVESTORS! How big is your mortgage? Greg Ninnes does an excellent job detailing how the new rules affect your profitability from day one.
Does this apply to you or your business?
www.interest.co.nz/business/109622/accountants-say-government-assume-every-employee-who-has-fring...
see for more info: www.ird.govt.nz/employing-staff/paying-staff/fringe-benefit-tax/types-of-fringe-benefits/employer...
Westpac is looking to split into two corporations Aus/NZ