Issue 12 24 February 2004
News from the NZ Property Investors Association
Martin Evans report from the Tenancy tribunal December Meeting
• Applications to the Tenancy Tribunal are down 5%, mainly due to more informed call centre advisors and training with Housing New Zealand staff. 62% of cases are also now being resolved through mediation, which is up from 42%.
• WINZ have requested that landlords attend to rent arrears ASAP, so by the time it gets to mediation the arrears are not too much. WINZ may then be able to reimburse the landlord and have the tenant pay WINZ back. Therefore as soon as the rent is one day overdue, issue a 10-day notice and if the tenant has a bad record of paying you can simultaneously apply to tenancy services for mediation. The mediation will be scheduled as soon as the 10 days is up.
• The wastewater issue is coming out of the RTA amendment bill and is moving to the RTA Review process
Floating rates up, fixed down
Although borrowers are facing higher interest costs on their floating rate home loans there is some good news for people who are prepared to accept a set interest rate for up to two years. In the past week all the major banks have increased their floating mortgage rates 25 basis points to 7.50% following the Reserve Bank’s surprise Official Cash Rate rise nearly a fortnight ago.
In contrast to floating rates fixed rates have been falling in the past week. The biggest action has been in the two-year area. ANZ economist David Drage says the best deal for borrowers is around the one and two year rates. His view is that the Reserve Bank is likely to increase the OCR another 25 basis points at the start of March and probably at least once more during the year.
The range of increases may be limited if the dollar either stays high or keeps rising.
However, Drage says that rates may start to fall at the start of next year. If this scenario pans out then mortgage rates will fall. He says fixing for 12-18 months will see borrowers through the higher interest rate period.
BNZ economist Tony Alexander says fixed rates are now 1% above their record lows of July last year while floating rates are up 0.4% with another 0.5% to go this year.
Current rates available are:
Special 6mth 6.65 %
Special 18mth 6.85 % down from 6.99 %
1 year fixed 6.85 % same
2 year fixed 6.95% down from 7.30 %
3 year fixed 7.35% down from 7.50 %
4 year fixed 7.60 % same
5 year fixed 7.65% down from 7.70% Floating 7.50 % up from 7.20 %
Homelink can often negotiate
a) even better rates than those above, depending on the application
b) contribution toward legal fees and a waiving of the application fee
c) 100% finance for first home owners (some lending criteria applies)
d) special rates available for public servants with some lenders
House Inspections- Buying or selling
An inspection completed by The House Inspection Company is an Independent evaluation on the state of the property, carried out for you the “Client” who may be -
- a Vendor wishing assurance that your property is problem free before you put it on the market and if there are any issues then the appropriate maintenance can be completed.
- a Buyer, to have assurance that the property is problem free (structurally sound and not leaking) and if there are any issues, then what steps are required to fix them.
The Report is a useful tool as it can be available to show to prospective Purchasers at Auctions or Open Homes.
How comprehensive is the report?
Our Inspectors have a comprehensive checklist to guide them through the inspection. They will check the -
Outside: The Perimeter of the house, checking from the ground up to the roof. Under the basement inspecting all accessible areas.
Inside: Every room, assessing the condition of the windows, doors, walls, floors, ceilings and fittings, moisture testing.
The roof cavity
Plumbing pipes where visible
Power points are tested and light fittings checked
Electrical or Gas appliances to ensure that they are operational
The Premium Inspection allows for a search of the Council Property file for copies of permits or building consents, house floor plans, site plan and drainage and plumbing asbuilts. We also look for any other issues such as covenants on large trees or engineering reports.
The Inspector while inspecting the property has a digital camera to record what he sees and these photos are downloaded onto a CD for you, plus a sample are printed for you to view with The Report.
A House Inspection is more than a LIM. We inspect the house, inside and outside. A LIM does not give that information. A LIM is a Land Information Memorandum and deals, as it says, with the land. It is a Legal document and it is always wise to obtain one.
For contact details email [email protected]
Visit 'Our Newsletter Archives' and useful links for up-to-date information
Our newsletter archives contain every article. This wealth of knowledge and expertise is still highly recommend reading!
All the concepts, "big picture" techniques and step-by-step instructions, make reading these back issues a simple but extremely powerful way to give yourself an education in starting, growing and exploding!
Check out all our back issues at http://www.ehomelink.co.nz/flash/newsletter.htm
Finance/Property Questions, free website/newsletter content, feedback
Finance / Property questions? Please email us at [email protected] and we will do our best to source the answers from our professional network.
Need some fresh, free content for your web site or newsletter? You now have permission to reprint these articles on your web site or in your newsletter.
To request permission to reprint any of our articles, simply email: [email protected]
Tina Webb The financial Alchemist -
Homelink Enterprises (NZ) Ltd
Ph (09) 236 3398
Fx (09)2363218 / (09)236 3981
Mob. 021 520 617
P.A. Lorna (09) 2363981
E-mail: [email protected]
Web: http://www.ehomlink.co.nz
News from the NZ Property Investors Association
Martin Evans report from the Tenancy tribunal December Meeting
• Applications to the Tenancy Tribunal are down 5%, mainly due to more informed call centre advisors and training with Housing New Zealand staff. 62% of cases are also now being resolved through mediation, which is up from 42%.
• WINZ have requested that landlords attend to rent arrears ASAP, so by the time it gets to mediation the arrears are not too much. WINZ may then be able to reimburse the landlord and have the tenant pay WINZ back. Therefore as soon as the rent is one day overdue, issue a 10-day notice and if the tenant has a bad record of paying you can simultaneously apply to tenancy services for mediation. The mediation will be scheduled as soon as the 10 days is up.
• The wastewater issue is coming out of the RTA amendment bill and is moving to the RTA Review process
Floating rates up, fixed down
Although borrowers are facing higher interest costs on their floating rate home loans there is some good news for people who are prepared to accept a set interest rate for up to two years. In the past week all the major banks have increased their floating mortgage rates 25 basis points to 7.50% following the Reserve Bank’s surprise Official Cash Rate rise nearly a fortnight ago.
In contrast to floating rates fixed rates have been falling in the past week. The biggest action has been in the two-year area. ANZ economist David Drage says the best deal for borrowers is around the one and two year rates. His view is that the Reserve Bank is likely to increase the OCR another 25 basis points at the start of March and probably at least once more during the year.
The range of increases may be limited if the dollar either stays high or keeps rising.
However, Drage says that rates may start to fall at the start of next year. If this scenario pans out then mortgage rates will fall. He says fixing for 12-18 months will see borrowers through the higher interest rate period.
BNZ economist Tony Alexander says fixed rates are now 1% above their record lows of July last year while floating rates are up 0.4% with another 0.5% to go this year.
Current rates available are:
Special 6mth 6.65 %
Special 18mth 6.85 % down from 6.99 %
1 year fixed 6.85 % same
2 year fixed 6.95% down from 7.30 %
3 year fixed 7.35% down from 7.50 %
4 year fixed 7.60 % same
5 year fixed 7.65% down from 7.70% Floating 7.50 % up from 7.20 %
Homelink can often negotiate
a) even better rates than those above, depending on the application
b) contribution toward legal fees and a waiving of the application fee
c) 100% finance for first home owners (some lending criteria applies)
d) special rates available for public servants with some lenders
House Inspections- Buying or selling
An inspection completed by The House Inspection Company is an Independent evaluation on the state of the property, carried out for you the “Client” who may be -
- a Vendor wishing assurance that your property is problem free before you put it on the market and if there are any issues then the appropriate maintenance can be completed.
- a Buyer, to have assurance that the property is problem free (structurally sound and not leaking) and if there are any issues, then what steps are required to fix them.
The Report is a useful tool as it can be available to show to prospective Purchasers at Auctions or Open Homes.
How comprehensive is the report?
Our Inspectors have a comprehensive checklist to guide them through the inspection. They will check the -
Outside: The Perimeter of the house, checking from the ground up to the roof. Under the basement inspecting all accessible areas.
Inside: Every room, assessing the condition of the windows, doors, walls, floors, ceilings and fittings, moisture testing.
The roof cavity
Plumbing pipes where visible
Power points are tested and light fittings checked
Electrical or Gas appliances to ensure that they are operational
The Premium Inspection allows for a search of the Council Property file for copies of permits or building consents, house floor plans, site plan and drainage and plumbing asbuilts. We also look for any other issues such as covenants on large trees or engineering reports.
The Inspector while inspecting the property has a digital camera to record what he sees and these photos are downloaded onto a CD for you, plus a sample are printed for you to view with The Report.
A House Inspection is more than a LIM. We inspect the house, inside and outside. A LIM does not give that information. A LIM is a Land Information Memorandum and deals, as it says, with the land. It is a Legal document and it is always wise to obtain one.
For contact details email [email protected]
Visit 'Our Newsletter Archives' and useful links for up-to-date information
Our newsletter archives contain every article. This wealth of knowledge and expertise is still highly recommend reading!
All the concepts, "big picture" techniques and step-by-step instructions, make reading these back issues a simple but extremely powerful way to give yourself an education in starting, growing and exploding!
Check out all our back issues at http://www.ehomelink.co.nz/flash/newsletter.htm
Finance/Property Questions, free website/newsletter content, feedback
Finance / Property questions? Please email us at [email protected] and we will do our best to source the answers from our professional network.
Need some fresh, free content for your web site or newsletter? You now have permission to reprint these articles on your web site or in your newsletter.
To request permission to reprint any of our articles, simply email: [email protected]
Tina Webb The financial Alchemist -
Homelink Enterprises (NZ) Ltd
Ph (09) 236 3398
Fx (09)2363218 / (09)236 3981
Mob. 021 520 617
P.A. Lorna (09) 2363981
E-mail: [email protected]
Web: http://www.ehomlink.co.nz