Whoop whoop – we have our finger on the pulse! The RBNZ announcement today that bank’s will be required to hold more capital on high LVR (loan-to-value) residential mortgages is a smart move in the right direction. Something I’ve been ranting about for a while. Higher capital will reduce bank profitability on high LVR mortgages.
In a nutshell the Auckland market has become overheated. It’s a function of low interest rates, poor quality rentals, under supply, and confidence. A lack of supply is the fire, with the other conditions providing the fuel. Unfortunately, the media attention and constant headlines has a tendency to whip the market up into a bit of a
Apartment lending is back with some banks lending up to 95% on an owner-occupied freehold apartment. This is an important step forward, especially for Auckland. Now we just need some Developers back in the game building apartments and town houses
Cool. We’ve finally finished the renovation at Himikera. Took us a bit longer than expected but extremely happy with the result. It is now on the market for sale and some lucky punter is going to get a mint new home. If you’re interested in doing a First Home Makeover this is an example of
We’ve had a couple of interesting client problems this week that we’ve solved for them but it is a good wake up call on the risks of pre-1945 houses. If there was one thing to remember don’t automatically assume you’ll get insurance. If you are buying an older house get your insurance arranged before you