Kapiti Financial Advice Limited – KiwiSaver and Investment
The Reserve Bank of New Zealand is to begin consultation on new proposals to tighten mortgage lending standards, including: Reducing the amount of lending banks can provide to owner-occupiers at a Loan to Value Ratio (LVR) above 80 percent – reducing the share from 20 percent of all new lending down to 10 percent. This … Read more
Sales volumes eased back a little in Q2. A continued lack of listings is still a restraining influence on volumes. However, data on valuations ordered by banks suggests demand has eased too. Buyer Classification data is showing a turning point in Q2. Investors share of purchases eased to 25%, with higher deposit requirements starting to … Read more
Earlier this week the Real Estate Institute of New Zealand (REINZ) released property market data for June. It came as no surprise to see that the data continued to reflect a tight market, squeezing further house price growth in a very stretched market. The national median price crept higher to $820,000, from $817,500 in May. … Read more
Earlier this week the Real Estate Institute of New Zealand released house price data for May reporting the familiar and increasingly concerning theme that house prices continue to rise. The Auckland region hit a new record house price again, of $1.148 million. Auckland City, North Shore City, Manukau City, Rodney District and Waitakere City all … Read more
BNZ economists expect price growth to soften in 2022 and 2023, but the longer inflation remains at current elevated levels the greater the chance that the housing market will be forced into a major correction. They have observed that: Population growth has weakened considerably House prices are simply becoming beyond reach Both the Reserve Bank … Read more
This week, financial commentator Janine Starks wrote an opinion piece on Stuff suggesting that members are are probably investing too much in their KiwiSaver scheme: Article The question is raised because members’ savings are essentially locked-in until they turn 65 years of age. Special rules ensure KiwiSaver investments are held through to retirement, with some … Read more
Earlier this week the Real Estate Institute of New Zealand released their Monthly Property Report for the month of October in which Chief Executive, Bindi Norwell, commented that “October 2020 will go down in ‘housing history’ as being the point in time when Auckland region’s median house price hit the million-dollar mark for the first … Read more
A number of factors suggest that the Reserve Bank is backing away from further cuts in the Official Cash Rate next year, as had been previously foreshadowed. This doesn’t mean that bank lending rates are on hold, rather the Reserve Bank is putting more reliance on another transmission mechanism – the new Funding for Lending … Read more
Last week’s REINZ property statistics indicated that lower and lower interest rates are feeding into higher and higher property prices, with buyers taking advantage of low interest rates and serviceability to get into a market that some fear will keep rising. In short, fear of missing out is trumping any concerns that the full extent … Read more
Latest data from the REINZ revealed that the property market continued to surpass expectations in August, supported by low interest rates, the prospect of rates moving still lower, a lack of listings, ongoing post-lockdown demand, the removal of LVR’s and first time buyers trying to get into the market. Activity continues to be underpinned by … Read more