The ideal time to work out your finances is when you first start thinking of building. Knowing how much money you can access will provide you with certainty. The various lenders in the NZ market offer a range of lending options. 

These are tightening, so perhaps now is when you should be talking to us if you have a build in mind. We may be able to help you with:

• Borrowing up to 95% of the house and land value
• Not having to make any loan payments until you move in
• Borrowing extra funds for furnishings and finishing touches
• Paying interest only on the amount of money you have drawn down to pay the build

So once again, do talk to us as we have the contacts, and can in most cases negotiate a lending package that is better than you can get as a walk in customer!

With many young adults leaving home for University or exciting career prospects, supporting them financially if things go wrong can be an incredible strain on your pocket. Up until now there has been little in the way of insurance for people that RENT and have regular bills. They are just as exposed as those with families & mortgages if their health takes a hit. 

HOUSEHOLD EXPENSES COVER Allowing for the fact that many of us at some stage will face a specific injury or illness that will affect our ability to earn income, this insurance provides an option that is similar to Income Protection Insurance. 

It is a specific amount that pays for such things as RENT, PHONE, WATER, ELECTRICITY, GAS, INTERNET and PAID TELEVISION, and we know how important those last two items are! 

So instead of bailing them out, consider shouting them or encouraging them to buy some insurance that supports them so you can concentrate on just being there when they need you.

A previous newsletter stimulated some interesting conversations around the accessibility of KiwiSaver to purchase a first home. Our article highlighted some of the criteria and rules surrounding the use of KiwiSaver Funds. Two points need to be expanded on and clarified:

To obtain the subsidy people have to apply to Housing New Zealand at LEAST SIX WEEKS BEFORE settlement date. Failure to do this may result in you not receiving the subsidy amount as a consequence. Please also be aware the portion of funds that have been contributed by you and your employer ARE AVAILABLE to use as your deposit. The Government contribution funds are not available to use. 

Whilst you are able to use your employee/employer contributions to form either all or part of your deposit funds when purchasing a first home, it is important to note that these funds can only be made available on the date of settlement. They are paid by your KiwiSaver provider direct to your lawyer and can only be used as part of your funds to purchase a property. 

There has been a tightening of lending criteria for 90-95% loans. With fewer lenders in this category, do talk with us BEFORE you make a move to avoid the stress and disappointment of having a loan turned down. In line with Government budgets, Welcome Home Loans criteria has also become more restrictive. Once again this is an area that we are experienced in, so book a time with me and we can discuss your options.

Leaving Insurance until it is too late?

‘There are two kinds of people!’  I have discovered this fact since I have been involved in the insurance industry.

The first kind are people that ‘get it’.  They understand their value, their risk and they understand that insurance is simply the method by which they protect their most important asset – themselves!

These people understand that their health, their ability to earn an income, theirs and their families futures, are worth protecting.

 And then there are the other kind of people ……….

People who either don’t understand or don’t want to think about the 'what ifs'-  What will happen if I get sick?  What happens if I can’t go to work?  Who will pay the mortgage, pay the bills, feed the kids?

These people seem to think ‘it’ will never happen to them.  But unfortunately ‘it’ does happen, to people just like them.  These who are protected by insurance at least give themselves and their family the benefit of financial support.

I have had the personal experience of meeting people who have been tragically affected by illness or injury.  Some had adequate insurance cover, some didn’t.  The potential futures of those with as opposed to those without insurance couldn’t be more different.

So as we head into Christmas, I’m making a personal plea –regardless of whether you speak to me or someone else.  Please consider insuring your and your families most important asset – You!

Scott