Posts Tagged ‘property finance’
The Loan Market continues their run of outstanding months in placing mortgages for our purchasers. They completed just on 191 loans and our top broker for the month of July was Bruce Patten. Scott Charlesworth who continues to have a great year, also had an outstanding month. The leader of our Central North Island business based in Tauranga, David Hart, who in his own right is one of our top international personal lending managers, was not far behind. The Loan Market team has 51 personal lending managers throughout New Zealand.
With the changing environment in finance for home lending, the Loan Market are increasingly being utilised by the buyers within the market. We would encourage you during this uncertain period with finance to consult with your local Loan Market personal lending manager to get the best financial information.
The Reserve Bank Governor, Alan Bollard, lsat week kept the OCR rate unchanged at 2.5%. The Reserve Bank statement made it clear that the OCR level will remain at 2.5% or lower until the latter part of 2010. There was also an indication that if the New Zealand dollar and wholesale interest rates remained at high levels, the OCR would be expected to be lowered over the next quarter. There was also a message in there for the property and finance markets. With average pricing beginning to increase across New Zealand, the indication was to re-enforce the housing market but to ensure that affordability remained for all New Zealanders and that banks continue to have enough liquidity to allow borrowing at a level which continues to keep the market flowing. He went onto say the economic outlook remains weak however New Zealand is slightly sheltered from the overall global recession through its exports and its partnership with Australia. The graph shows since July 2008 that interest rates have reduced from 8.5% to 2.5% and potentially expected to go lower.
Source ASB Economic Update
The number of people who think the time is right to buy a house continues to increase, even as expectations that prices will keep falling start to ease. The ASB housing confidence survey for the three months to April, published today, found 59 percent of respondents felt now was a good time to buy, up from 53 percent in the previous quarter. ASB chief economist Nick Tuffley said that during the past nine months those surveyed had become increasingly enamoured with the housing market.
The improved sentiment appears closely linked to the dramatic fall in interest rates in the past year, Mr Tuffley said. “Housing is a New Zealand example of ‘green shoots’. Caution over the outlook for prices and the uncertain economic environment has started to be overcome in recent months. “The early months of 2009 have seen positive views on purchasing translate into action: sales turnover lifted sharply through to April.” It was likely the housing market was turning the corner, but a robust recovery was another matter.
“Many long-run fundamentals for the housing market remain weak, in particular prices remain high relative to both incomes and rents despite recent price falls,” Mr Tuffley said. “The cautionary messages for prospective buyers are to be realistic about the extent of future capital gains and to make allowance for the fact that mortgage rates will be higher on average in the future than the rates currently available.”
In the latest survey, a net 45 percent of respondents expected house prices to fall in the next year, while a net 30 percent expected interest rates to fall. While expectations of lower house prices persisted in the latest quarter, month-to-month results showed a very pessimistic start to the quarter but a swing to less downbeat views by April, Mr Tuffley said. During the three month period, there were also increasing doubts that interest rates would fall further. By the end of April responses were evenly split between those expecting rates to rise or fall. “The shift is no doubt in response to the sharp jump in fixed rate mortgages at the end of March.”
The Loan Market New Zealand consumer website has been undergoing a major redesign over the past months and was released publicly overnight. The Loan Market New Zealand has 46 brokers faciltating 760 mil in lending per annum.
The upgraded Loan Market website now includes –
Updated branding to the new International Loan Market logo
Comprehensive menus for Home Loans, First Home Buyers, Investment Loans and Refinancing inclusive of more extensive content.
New user friendly mortgage calculators
Full Loan Market overview including How Brokers Work section
Prominent Contact Forms on most pages designed to collect real time consumer enquiry.
Enquiries are contacted within 2 business hours on a working day
At-a-glance interest rate table displayed on all pages
Real time interest rate guidelines on the front introduction page
E Newsletter subscription facility
Site search facility
Please visit www.loanmarket.co.nz
Tony Sheirlink of Ray White Browns Bay recently asked Stuart Matheson from the Loan Market North Shore to attend three open homes for properties he believed would have a lot of interest and the possibility of multiple offers. He was right!
The first property they received together, 5 offers on the Sunday night. Tony wanted them to have the confidence to offer their best offer, whether that was price or fewer conditions. The 2nd property, a deceased estate, and the 3rd an auction. Tony and Stuart are working together to have buyers in a position to bid on the day. Stuart secured three appointments and also gave the buyer confidence as to what their preapproval meant, resulting in them making their offer unconditional.
Tony said ‘the vendor of the Auction property was really pleased with the Team approach and the fact Stuart was there that to sell her property’ Tony added ‘that it was a bonus as Stuart was around also helped with the overall security of the property’.