It’s not the relaxing to 70% that some investors had been expecting however the increase from 60% to a 65% threshold will in some cases be the difference in getting another property transaction across the line. That is the big news for investors in the Financial Stability Report which was released earlier this morning.

The new government, their proposed changes to policies, and their effect on landlords/investors, what does it all mean?

The election has blown over, our political environment has been set for at least the next 3 years, and the term under Labour seems like it will be influential for property owners/investors with the fact it was such a hot topic in the campaign.

To re-cap on our previous newsletter, I am primarily focusing on the property/rental market, the economy and how this will impact us as investors.

From this perspective, the Labour party plans on the following changes, which I’ve grouped together based on.....
 

Watch Matthew Gilligan and Tony Alexander as they give their post-election analysis. They discuss what is likely to happen in the economy and property market over the next 12 months, factors influencing the market, and how you can invest and profit in the current and unfolding conditions.

 

How do I get started in property investment?
 

• Learn the basic principles you need to know about property investment
• Understand how to turn your first investment property into a portfolio

Property ownership is and always will be a kiwi dream, if not, THE kiwi dream. In the current market, especially among major town centers – with Auckland in particular – affordability is more and more problematic, with property investment seeming even further out of reach – but in reality, is it?
 

Election time is less than a couple of days away and a lot has changed in the last 6 weeks with it being interesting to see if the ‘personality politics’ that worked so well for National under John Key also work with Jacinda Ardern taking the reigns over a Labour party that until that stage had managed to continue to trip over itself over the best part of the last decade. Under MMP....

 

Labour has targeted investors in its housing policy released. Ringfencing tax losses, five-year bright line rules and a tax committee (to mask their desire to bring in capital gains tax) are all on their agenda......

 

Congratulations, you’re approved! What’s next?

The conditions of the loan offer are usually detailed in the offer letter itself, and can sometimes seem quite confusing, meanwhile you’re just concerned about how to access your money.....


 

Collateral is basically the backing outside of a borrowers personal guarantee which can help a borrower secure loans. It gives the financier the assurance that if the borrower defaults on the loan, the lender can repossess the collateral. For example, car loans are secured by cars, and mortgages are secured by homes......


 

The Third C, which many Kiwis are facing at the moment as the major hurdle for getting into the property market, particularly into their first home, is Capital.

Lenders will carefully consider the amount of capital a borrower puts toward a potential purchase, whether it be owner occupied, or investment. This can vary dependent on the .....

The next ‘C’ is Capacity. This is a test that the lenders conduct to satisfy themselves that the borrower can repay the loan that is being applied for based on the client’s particular circumstances. It is sometimes referred to as Serviceability too.

A bank will view the numbers quite differently to your own calculations, which is why you may sometimes experience a.....


 

Credit is governed by what is known as the 5C’s, I will be doing a five-part blog on each of these over the coming weeks which should assist readers in understanding what it is banks look for when assessing finance applications.

As the credit market tightens banks will look more closely at finance applications, and we might find that more and more frequently, what was previously approved, will not be in the times ahead.....

 

After a fun couple of months with the Lions and American’s Cup taking up much of the countries attention I now expect this to divert to the upcoming election. While the property market has already slowed considerably I expect it may continue to do so until post 23^rd of September.

While the mainstream media seems to be doing its best to crash the market in reality it is just not going to happen and there is no “cliff” we are about to fall off.....

 

Most of you will already be aware that funding is much more difficult than it was only a year ago and this is before proposed additional changes such as Debt – to – Income Ratios and the potential for the RBNZ to increase the capital banks require to hold. We have already seen over the ditch Australian banks be regulated in regards to lending on an interest only basis and here we.....

 

Buying a home is a dream of many Kiwis. It always has been, and always will be – even if it is perceived that it is now more difficult than ever.

With the fact that this is a large step for anyone, there is no such thing as being too careful, where do I start......