June 8, 2016
Welcome to May’s Capital Comment…
Well we seemed to have skipped Autumn and marched straight into Winter! It has been pretty grim out there! We have been amazingly lucky with the weather but it was always going to end sooner rather than later! Not so the low interest rates though with strong suggestion that the OCR will be cut again on the 9th June. In reality I still think it is unlikely that we’ll see much change to the fixed rates even if the OCR is cut with possibly just the odd rate dropping below 4% in the form of a special…special for who though…?!
At the time of writing there are only about 250 houses for sale in the whole Wellington Region…that’s not enough but it’s hard to see how it’s going to change at the moment. Perspective vendors are reluctant to put their house on the market as they can’t guarantee to find something to buy so the number of listings is dwindling. Anything that is on the market is typically selling for a premium due to the lack of stock available. It seems like a perfect storm all round! With the lack of house sales it’s a good time to remind you that not only do we arrange finance for new purchases but also for top ups; debt consolidation; renovations and for re-finances if people are wanting to change banks. Why would someone want to change banks, well it may be to restructure into a Trust; there’s a deal available elsewhere that is too good to ignore or they’ve just had enough of their existing bank! With the contributions from the banks at present, there is typically enough offered to cover the cost of the conveyancing and also have up to a couple of thousand dollars for fun spending at the end! Please get in contact if this is for you or if you have any friends/family who may be interested and remember our $100 Prezzy Card thank you for successful mortgage and risk insurance referrals. Stay warm!
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