The Reserve Bank of New Zealand recently set a new rule for Banks that means that any investor purchasing a new property must have a minimum of 40% deposit. This one roll has caused a major dampening of the property market throughout New Zealand, simply because a large number of investors can not find enough cash 40% deposit. The banks are rigorously sticking to this rule, and the investors’ mortgage brokers are forced to go to non Bank lenders and wealthy individuals for financing for their clients.
The reason that this has had such a major impact is that the vast majority of the investors are just simple mum and dad investors, who only have one or two investment properties at the most. Their broker may be able to organise a smaller deposit requirement by aggregating the mortgages from the other investment property or properties, but unless they are with the same bank then this will require the mortgage to be changed to the new bank who will be providing the loan. It needs a very skilled and determined mortgage broker to organise this if their client there’s not a gold star safe investment.
The other problem for the investor is the feeling that the equity is being reduced, enhance their life savings now have additional rusk attached. This makes for a very dampening effect for all they are the most confident investors, and it is this that has the biggest impact on the property market.
For all that, mortgage brokers who are respected in the investment community generally have a very lucrative business, because there will be a number of investors who are confident and in a financial position to keep on purchasing property, and for the good mortgage brokers in Upper Hutt this simply generates repeat business and lots of it. In addition their client is generally wanting more of the same, and for the mortgage broker the work is largely cut and paste.
Mortgage brokers generally get around 0.65% commission from the banks, and hence of a broker can organise mortgages all around $10,000,000 in one year then this will translate to a $65,000 payday. In the largest cities in New Zealand this $10,000,000 would be equivalent to 10 sales at the average sale price, and there will be some good mortgage brokers in Porirua that are writing 3 to 6 times this volume of mortgages every year. Their career will be lucrative into the foreseeable future.
Homeowners who have been in their house for many years what I often find that they have a very large equity in the property. If they have a good and secure job they can then find that the banks a very happy to lend them money for improvements to their property or even for the purchase of another property.
However it is a very smart move for the homeowner to check all this out with an experienced mortgage broker first, because mortgage brokers Otago generally have a lot of experience in the pitfalls for homeowners who are expanding their property Portfolio.
Sometimes the homeowner finds at the banks play hard to work with, and so they will go to a mortgage broker to see if they can get a better deal. Often the bank may find that the homeowner can easily refinance their property with another lender, and take out a much larger mortgage but it a good interest rate which means that the payments and not too difficult.
A lot of homeowners use this technique in order to replace their vehicle with a new one, and they do this because it can be easy to do. What they fail to realise it is that when they take a larger mortgage out on their property in order to buy a new car, the value of the car decreases immediately they drive it off the car lot, and then continues to increase rapidly over the life of the vehicle. Meanwhile their mortgage repayments will have increased significantly, and while this may not be a huge problem in the short term it does become a problem if the homeowner loses their job or has to take a cut in income. Don’t panic over home loan rate rises, mortgage brokers say.
The problem can be immense if the homeowner is unable to make the new mortgage repayments, because at that stage the bank will demand that the arrears are paid up as soon as possible, and the bank may take ownership of their new car and then sell it in order to create a lump sum cash payment for the arrears. This leaves the homeowner with an ugly problem and that they no longer have a car but they still have to make the payments on it, and even worse the bank will probably have sold the car for a fraction of what the homeowner purchase it for.
If the homeowner is still having problems making the mortgage repayments then the bank may come in and sell the house under them. All of these possibilities need to be clearly spelt out by the mortgage brokers Southland when the homeowner is making the decision whether to refinance or not. A good mortgage broker will be able to assess fairly quickly whether the homeowner is going to be a good safe bit for any bank, and the brokers main job will be to talk behind Mona out of their plans if they can see that it’s just too risky.
There are a handful of brokers who have managed mainly by spending a lot of money to make certain that their company website ranks number 1 or number 2 for all Google searches. For these mortgage brokers in Manawatu the most important aspect of their marketing is not the measured quality of the service they are providing to their clients but simply whether they are ranking number 1 or number 2 on Google searches.
The reason for this is that for anybody searching for a service on Google the statistics show very clearly that around 30% of all traffic will go to the website ranking number one, 18% we’ll go to #2 and 12% we’ll go to #3. Everybody on page 2 and beyond gets to share only one or two percent of the total traffic coming from Google searches.
The irony of this is that while the lucky few get the vast bulk of all of the new business coming off the Internet, the other 92-95 of mortgage brokers who made collectively may be vastly more competent and efficient for their clients are all having to use tried and true marketing techniques such as personal networking and outbound phone calling in order to generate new business. This is not an ideal situation for potential clients, as they are effectively being fooled into choosing a mortgage broker who may not be anywhere near the best. The worst part of this outcome is that these handful of mortgage brokers that are winning virtually all the new business can afford to be very choosy about what business they pick up, plus they can also a forward to offer only an average service, as they know that there will be new business coming in the door every hour or so.
There is a good opportunity in this market for a competent lead generation business that can pluck traffic away from these highly ranking brokers, and then forward it as real time leads to one of a collection of hand picked brokers who are definitely fully qualified and registered and proud to announce it. The real risk to the high ranking broker companies is that a specialist lead generation company that really knows that stuff around SEO can potentially win a lot of business that otherwise would be going to the high ranking companies. The truth is that these high-ranking companies would probably be lost if they were forced to have to chase after new business in the same way that all the other lower-ranking mortgage brokers in Wairarapa have to.
Mortgage brokers fulfill a vital role in The New Zealand financial scene. While it is the banks that almost always provide housing finance, it is the mortgage broking sector and help buyers find the best mortgage or the best solution for their particular problem. Thanks have long recognised that mortgage brokers are an important ingredient in the overall solution, and in general Banks reward the mortgage brokers well for their work.
Probably the most common reason why people first come in contact with a mortgage broker is because your own Bank that they have used all their lives no longer wants to know them when it comes to providing a mortgage. Bank customers can be lead into a false sense of security by the seemingly very pleasant relationship they have with their bank, and any rejection for a mortgage can come as a rude shock.
A good mortgage broker can provide assistance in a number of areas, and can more often than not find a good mortgage for a customer too early because they are across all of the good deals going out there and because they are not wedded to anyone bank. In particular a good mortgage broker wall know which banks are currently looking to lend money and have therefore softened their requirements, and a good mortgage broker will also know exactly what a good deal looks like.
In many cases the customers only problem is that they don’t look very good to their bank as a mortgagee, but this might simply because the customer does not have a good employment or savings history at that particular time. Mortgage brokers are generally very good at understanding what banks need in order to feel comfortable to provide a mortgage, and they can advise their client accordingly. This might be to simply advise them to get temporary employment if they are a self employed business person for example.
The good mortgage broker might also have to advise the client that they need to reduce the aspirations somewhat, and the mortgage broker will be able to provide the numbers and explanations which make this perfectly clear to the client. They may also be able to see a path for the client to improve their housing situation down the track, and might be able to advise the client on steps to take so that the current housing situation is not long term.
It is not necessary to get an expensive glazier and to repair a broken window pane, is the job is pretty easy to do by yourself. You will need to purchase and identical size window pane from the Glaziers Taupo has + some cutting and you will need a putty knife. You should always wear gloves for safety.
You should start by laying down a large sheet of cardboard or similar on the ground under the window so that you can push the broken glass pane out onto this sheet. You should then apply strips of duct tape to the outside of the broken window so that you are holding the window together. Then from inside you should tape a sheet of cardboard the same size as the glass pane, and then using a stick of timber at least a metre long you should poke the glass outwards around the edges. If you are lucky the entire pain will fall out held together by the duct tape but at the very least the duct tape should hold most of the glass together while it falls out onto the cardboard pad.
You should run the stick of timber around the edge of the window to check for any remaining glass shards, and you should knock these out onto the cardboard pad. Once all the glass has been removed you should fold up the cardboard pad and tape it safely so that all the glass is safely out of the way. You should then use your putty knife to clear away any remaining old putty from the window frame, and then you should paint on some oil based primer.
You should then roll up a bead of putty and apply it to the window frame so that you have something to stick your new window pane to. Once you have inserted the new window pane you should also insert some glazier pins into the wood of the frame to locate and hold the window pane. You should use two or three pins per edge.
Next you should have ply a good dollop of party all around the window using your hands. The next step it’s to wet your putty knife, and then drag it a long each edge so that you removed all of the excess party and leave a very nice straight finish. You should also go inside the house and use your putty knife to remove any excess putty that has made it’s way inside the window. Don’t worry about any putty marks on the window pane as these are easy to remove with standard window cleaner.
You should leave the putty to cure for 5 to 7 days, depending on the instructions on the putty, and after this you can paint the party and tidy up the window.
So it’s Mother’s Day and you can’t think of anything to get your mom. Don’t fret! Wash the dishes! Vacuum the carpet! Clean the windows and the bathroom mirror! She’ll love you forever (I’m sure she does anyway but this way she’ll express her gratitude as well).
Another idea is to cook breakfast for her and serve it to her while she’s still in bed. A coffee the way she likes it, some marmalade on toast, and a little porridge with milk. Make the porridge a little gourmet by adding something mildly exotic to the mix, chop up some nuts and dried fruits, for example:
Chopped dried apricots
Serve with yogurt and fresh fruits. Oh my goodness, sliced strawberries! It will be the highlight of her day.
Check out Jamie Oliver’s video on how to make excellent porridge:
Mother’s Day is a marketing day used by businesses around the world to encourage you to buy stuff – but don’t tell your mom that! You can still make her day great and express your gratitude for her being an awesome mother and raising you well. She gave birth to you and put up with your crap for decades, the least you can do is make her some porridge and vacuum the carpet. But you don’t necessarily need to buy her something, that’s the lazy way.
So save some money and don’t buy anything for your mom, but show her your love in other ways. She will be so much more grateful for breakfast in bed and chores than a token generic gift. Its so much more thoughtful.