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Destroy your Debt!

By Ryan Smuts on August 5th, 2022.

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An “Offset” account is a savings account which is attached to your Home Loan Account.

It works by charging you interest only on the difference between the limit of your Home Loan Account and the Balance in your Savings Account(s)...

Concerned about your mortgage payments when your existing Fixed Rate expires?

By Ryan Smuts on July 28th, 2022.

Recently we’ve had many clients in situations where they have been asking whether or not they should break and re-fix their existing fixed rates. Generally speaking for those clients with quite a long fixed-rate period left, in many cases it doesn’t make sense... 

 

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OCR Update (13/07/2022)

By Ryan Smut on July 14th, 2022.

On the 13th July the Reserve Bank (RBNZ) has reviewed our Official Cash Rate (OCR) and has increased it by another 0.50% from 2.0% to 2.5%. The OCR has been our primary monetary policy tool in NZ to assist the RBNZ in meeting their mandate to control inflation...

 
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Changes to the CCCFA (07/07/2022)

By Ryan Smuts on July 14th, 2022.

On the 7th July 2022 there were some amendments to the CCCFA changes that initially took place on 1 December 2021...

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Climbing interest rates

By RYAN SMUTS on April 29th, 2022.

In early April, there were many discussions following the interest rate market. The OCR was increased by 0.50%, which has NZ currently sitting at 1.50% (to note: this is the first time in over 2 decades, where the OCR was increased by more than 0.25% in one review).

 

It is without a doubt that this will impact the interest rate market, with many banks already increasing their...

 

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Taking some time off?

By Ryan Smuts on October 28th, 2021.

It is quite a common scenario we encounter, where clients are wanting to look at setting up a foundation and buying a home as opposed to renting and are planning to have kids.

The most important consideration from a lenders’ perspective is how to make the mortgage work – particularly during the period when there is a reduced income.

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Interest rate update - September

By Kris Pedersen on September 9th, 2021.

Level 4 Lockdown – it’s been over a year since we’ve been here, and I don’t think any of us expected to be back here in a hurry! We definitely took our freedoms for granted!
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Property Owners 'Landed Gentry'?

By Matthew Gilligan on August 14th, 2021.

I was recently reading an article about Susan St John and Terry Baucher’s latest call for a harder taxation regime for all residential property in New Zealand. (Yes, harder than the myriad of changes we have already had.) 

These chardonnay liberals are promoting the annual taxation of equity in residential property (private homes and investment property) with an implied rate of return (called a ‘Fair Economic Return’). They are bitterly disappointed that NZ did not consider bringing in an accruals-based capital gains tax, and spend much of their time maligning property as an asset class to the government and left-leaning press. Despite the biggest changes to NZ property taxes in a hundred years, this pair of....

 

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No Income? No Problem!

By Ryan Smuts on August 8th, 2021.

Our client has a home worth $1.5m in Auckland, and only $20k of debt with a main bank. They are a classic case of having high equity and low income.

 

They wanted to look at purchasing a trade property (buy, do-up, sell) and didn’t want to let the fact they weren’t working hold them back. They also didn’t want to get a job just to please the bank.

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Do you miss large Revolving Credit Facilities?

By Ryan Smuts on August 4th, 2021.

One of the frustrating changes as an investor over the last few years has been how hard it is to access revolving credit facilities if you don’t have a specific property purchase in mind. Banks have practically made giving away your first born as part of the criteria and with great deals not sitting around for long having access to the ability to move quick is a great asset to have.
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Deal of the month: a restructure win

By Ryan Smuts on June 15th, 2021.

It’s very common for us to recommend to our clients that they review their financial position regularly, which helps them stay informed of market changes and how these may apply to their own personal situation.

Recently we worked with a couple who had an investment property with one bank, and their home with another. In most cases this is the best way to have things set-up, as I’m sure you’re all aware how fond we are here at KPM about the “Split-Banking” strategy for mortgages.

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Making Additional Payments on your Mortgage

By Ryan Smuts on June 8th, 2021.

In the current low interest rate environment, we’re seeing a lot of clients look at repaying debt quite aggressively (paying above the minimum or making ‘additional’ payments to their mortgage on a regular basis). There can however be some downsides to this when applying for new lending, and I’d like to show you how to get around these so that you’re achieving your desired result, and also keeping the bank happy. 

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Surprise tax changes for residential investment property

By Brent Smith - Iron Bridge Property Management on April 1st, 2021.

Now that we have had time to reflect on the impact of these announcements, we thought you would appreciate our view on things going forward.

There has already been some great commentary written about the changes and we have included some links for you to review.

The main five points however:

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BREAKING NEWS: Government introduces bright-line and interest deductibility changes

By Matthew Gilligan on March 23rd, 2021.

As part of the Government’s property policy announcements today (23 March 2021), there are two significant changes to tax rules that will impact residential property investors.

If you don't support the changes, there is a petition that you can sign (link here and at the end of this blog).

I ran a webinar discussing these changes on 25 March. You can watch the recording here.
 

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LVR Update - now's a good time to act!

By Ryan Smuts on October 19th, 2020.

If you are living in NZ right now, you are very likely to be aware of what is happening in the property market, with auction clearance rates up, and property prices rising at rapid rates.  
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