Property and Mortgages
Property and mortgage advice to help you get on the ladder
We’ve also heard a lot in recent years about how unaffordable housing is becoming, particularly for first home buyers, and particularly in areas like Auckland and Queenstown. Its definitely achievable though – no two properties in a given market are the same, and sensible savings, use of Kiwisaver, and buying smart can all help people get over that first home hurdle.
With the property purchase comes the debt. Mortgage funding for residential property purchasing is big business – a large share of bank profit in New Zealand is from retail mortgage lending – and given the historically low interest rates that we’re seeing these days, it’s an excellent time to use that debt effectively – which is where good mortgage advice comes in.
Investing in property
Property is an enormously popular investment class for New Zealand too – but its needs to be treated as an investment like any other. In a world of uncertain pricing and flat yield, running a property investment portfolio like a business becomes critical – how you maximise value through gearing, structuring for tax efficiency, and ensuring you manage costs and risks well. While property investing has created some great headlines over the past few years, it’s an investment that carries risk like any other – and that needs to be managed property. Which is where great property planning and mortgage advice comes in.
Home ownership in retirement
There is a strong correlation between mortgage-free home ownership and quality of life in retirement. Nearly two-thirds of residential property in New Zealand is mortgaged now, and 30% of owners over 70 still have a mortgage. Getting the right level of gearing, and making the most of todays low rates to accelerate repayment of debt, can make a material difference to wealth long-term.