Thanks to all of our existing clients who touched base with us at the Ideal Home Show again this year, and a big welcome to those of you who met with us for the first time and we welcome you to our monthly newsletter.
The Show this year was again great fun and we really enjoyed chatting with you all.
A big thank you to Tony Wagenaar of Direct Valuations Limited and MBG Limited who so kindly donated the prizes for the prize draw.
The winners this year are:
1st Prize - A registered Valuation valued at $506.25: Haydn Aplin
2nd Prize - 6 bottles of premium wine donated by MBG Limited: Bill Jamieson
3rd Prize - 3 bottles of premium wine donated by MBG Limited: Rachel Rolston
We look forward to talking to you all over the next few months, but please don't hesitate to call us in the meantime at Manawatu Home Loans.
Kind regards Toni & Julie
What are the interest rates really going to do?
Recently we listened to an economist say that they believed the new 'norm' for interest rates was that the floating rate would remain lower than the longer term fixed rates. While New Zealanders have perhaps lived the last 15 years with the reverse of this concept, the time had come for them to realise that if you want certainty around interest rates, then that comes at a price. Therefore the fixed rates would stay higher than floating, and you would pay for the privilege of this certainty.
If confusion is to reign over this opinion the recent movement by banks following the OCR announcements, has indeed thrown some of this into debate. We are seeing the floating rates moving gradually up and most ecomomists are suggesting that unlike the past two years where the OCR has a 3 in front of it, we are more likely to see a 4 or even a 5. We are seeing the longer term fixed rates coming down and the gap being bridged between the two, so therefore it will be an interesting space to watch the passage moving forward thus creating a continued period of confusion on whether to fix now or remain on floating.
It is very difficult to make a general rule that covers all borrowers. At Manawatu Home Loans we encourage you to call us to discuss your individual requirements in respect to your planning of your mortgage structures, and we look forward to assisting you with your ongoing needs.
Over the last few days QV has released it's Residential Property Overview, giving data on how the New Zealand residential property market is performing under the current economic climate.
"A real do-nothing sentiment is gripping the property market" was reported with the number of house sales down a third from a year ago, says the valuation agency QV. This is certainly having an effect in the market with the difficult lending climate and cautious buyers, leading to many homes taking longer to sell with less competition for the buyers. Prices seem to still be holding in most areas but this is only the case if vendors are in the position to hold for their price. If hardship or job location is the cause for the shift then it is likely price will have to be compromised.
We are seeing some interest rate reduction on the fixed rates and this may signal that a more positive interest rate market will make it affordable for borrowers to take on slightly larger loans and strive for the more expensive home if they can lock that interest rate in at 7.25% for 3 years. So if lending criteria's continue to become more realistic to the improving market, sales volumes could improve into the spring which is a traditional time for more buyers to be out looking for a new home.
If you are wanting to review your position give us a call at Manawatu Home Loans and we can investigate the options, and provide a pathway that meets your specific needs.
The big C – CANCER
Cancer isn’t one disease, it’s many. The common factor in all cancer is that it starts when normal cells in part of the body divide and grow out of control and spread, either to surrounding tissue, or transported through the bloodstream to other places in the body by ‘metastasis’. Cancer can affect people of all ages, but the risk of contracting it increases with age. Lifestyle factors such as smoking and alcohol consumption increase the risk of getting cancer.
Living with cancer
A cancer diagnosis can literally turn people’s lives upside down. Such news comes as a complete shock, and most people are not prepared for the emotional, physical and financial impact cancer will have on their lives. The stress of cancer can be incredibly difficult for a family to cope with. On top of that people have new financial stresses to deal with. If you or your loved one were to get cancer, would you be able to cope financially? Your income may reduce, but your living costs won’t. If you or partner were unable to work due to cancer this may impact on your ability to meet your home loan repayments and your day to day living expenses.
Trauma Insurance
One benefit that can go a long way to lessening the financial impact of cancer is Trauma Insurance. This is a tax free lump sum benefit that will be paid to you on the diagnosis of one of 42 serious conditions including cancer. This benefit will remove the financial worry that comes with serious illness allowing you to focus on your recovery.
If you would like to talk to one of our experienced Consultants at Manawatu Home Loans then please call us today to make a time to meet with us.
Article is courtesy of Fidelity Life
While talking to others about our problems can provide perspective, if change is required, it’s up to us to make that change.
Written by Kate Marr-Kippenberger - writer of the daily column, Soul Food, for The Press. Soul Food has been published in book form internationally and was a best seller in NZ. Please go to www.onlinesoulfood.com for more information.