Issue 2017 / 6 21 April 2017
Welcome to the sixth fortnightly General Finance Mortgage Commentary for 2017. We aim to keep you informed on developments at General Finance Home Loans and the mortgage market in general.
The Money Market
This morning (9 am on 21 April 2017) the money markets were at the following levels:
Official cash rate 1.75% (unchanged)
90 day bill rate 1.95 (down from 2.00)
1 year swap rate 2.08 (up from 2.06)
3 year swap rate 2.53 (up from 2.47)
10 year bond rate 2.96 (down from 3.10)
NZ/US dollar 0.7000 (up from 0.6970)
Flipping of Properties
Flipping is where a buyer purchases a property and then on-sells it in a matter of days or weeks at a profit. Sometimes these profits can be in the hundreds of thousands of dollars. There are ways of protecting this from happening to you. Firstly, use an agent, interview several and then choose the most suitable. Secondly learn from the agents that you talk with exactly what your house is worth. Ask your agent for a comparison of sales of houses like yours and drive by these properties. Do your own research. Alternatively, you can use a valuer to appraise your property, and ask him or her, what is the best way to sell your property. If you are not using an agent, then obtaining an independent valuation is a must. Most people do not work in real estate and it can be hard at times to know exactly what your property is worth. The above pointers should assist you.
Auckland City Council Valuations
Currently the Auckland City, and other areas, are undertaking their triennial council revaluations. They were last done in July 2014. The new valuations will become available in October of this year. It will be interesting to know where and what the increases will be. Owners, as usual, can object and the process will be outlined when you receive the new valuation.
Councils and Flooding
One of the core functions of a city or regional council is to protect its citizens against natural disasters, such as floods and fires. If an area is low lying or has slumped lower due to seismic activity, and is now more prone to flooding, then it is a council’s core responsibility to ensure its citizens do not get flooded out. This can involve increasing the size or number of stop banks, creating more drainage canals and building of pumping stations. In the worse areas, it could be assisting people to raise their properties. Saying that a flood is a one in five hundred year event, and yet it happens every ten years, is just not good enough. Councils should refocus on their core functions.
Monthly Income Debentures
General Finance is a licensed non-bank deposit taker. We can accept funds from the public. One our products, for investments of $10,000 or more, is our monthly income debentures. This means that we pay our interest monthly, which suits many retired people, particularly those who have regular monthly outgoings. Our rates are, of course, more competitive than the banks.
Mortgage Interest Rates
For updated mortgage interest rates, either for new business or applicable to your existing loan, please contact your Lender (below) or the General Finance Limited Loan Administration Department.
As everyone's personal circumstances are different and the tax treatment of their affairs is always determined by their own circumstances, you should not act on any comments made in our Commentary without obtaining your own independent professional advice.
General Finance Limited is a Registered Financial Services Provider, with registration number FSP8882.