Daily Archives: November 26, 2008

Prices may come down?… but criteria just shot way up!

New Zealand’s biggest bank, ANZ / National have just announced, that effective tomorrow, 27th November property borrowers will require a 20 percent deposit on a new home loan application.

ANZ / National commented – “we treat every customer as an individual and there is no “standard scenario”.

The NZ Herald reports“But from tomorrow, generally speaking, both its ANZ and National Bank brands will not be offering new lending in excess of 80 percent loan to value ratio. This means a mortgage cannot be more than 80 percent of the value of a property.”

They also mention that there are still some circumstances where a “low doc”  loan may be considered, however these would only be issued at a maximum limit of 60% of the loan to value ratio. Low Doc loans are typically applied for by people that have difficulty with proof of income and self employed people, who for example may have a seasonal business that does not show a consistent cash flow.

They are, like many banks now indicating that if they do lend beyond 80 per cent loan to value ratio, more likely for existing clients, then an updated registered valuation would be sought.

Over recent months the media have raved on and on about prices coming down, many first home buyers have taken them at their word and sat back and waited. Now instead of a 10% deposit or approx. $30,000, they now need 20% or $60,000 on an average NZ home.

The way I see it, vendors have just had another percentage piece of the pie of potential home buyers, removed from the pool.

Marks Mortgage Commentary – Nov 26th

To fix or not to fix, that is the question?

This week, that’s the big question that everybody is asking me. A lot of clients are coming off high interest rate loans and they are looking to secure their repayments going forward.

In my personal opinion if you are coming off a fixed rate loan, and can afford it, stay with a floating rate mortgage. The RBNZ is about to announce their latest update late next week, with a 99% chance of another interest rate reduction.

You need to be in a position where, with the correct advice, you feel you are fixing a rate at the best possible rate if you are going to tie that in for the next few years. The only way you’ll know that we have reached the bottom is when it starts to go up again, and then you risk leaving your move until it’s too late.

One area that you need to give serious consideration to is your mortgage repayments.

If you can see yourself clear to maintain the payments at the level you have been used to making for the last year or two, keep those repayments up to those same levels. By maintaining the level of your payments you will thus repay your mortgage back sooner with the added benefit that you’ll save thousands more in interest too. Click on picture to right for easier to read version.

It’s in most banks corporate interests to encourage you to reduce those payments to just the regular minimums required.  That way you’ll still be paying them back for the full term 20 – 25years or so, and this is where they generate the great percentage of their profits.

Regards Mark  ( mark.papps@mortgagemoney.co.nz )

SCREEN PICTURES SHOWN ARE EXAMPLES AND FOR ILLUSTRATION PURPOSES ONLY – MARK IS HAPPY TO UPDATE YOU WITH ACTUAL CURRENT FIGURES

Thinking of Having a Garage Sale – PartVI

ON THE DAY

SECURITY

As mentioned before its always a good idea to have at least two people so that while one person is busy giving change to a paying customer the other is keeping an eye on things. Also make sure that you have the house secured while you are in the garage area.

SIGNAGE The Garage Sale Sign

Get 2-3 “Garage Sale” signs organized the day before, don’t leave it to the day of the sale. Waterproof is something to think about.

If you are placing signs out on the street or at prior or busy intersections to your street then please be aware of any council regulations that apply. You must take the signs down as soon as the Garage Sale is finished.

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LARGE GARAGE SALE SIGNS
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If you would like some large signs for your Garage Sale for free please see my contact details under “CONTACT DAVID” just under my blog header. I usually have some old For Sale signs whose reverse side make for a fantastic Garage Sale sign.

Other thoughts

You could also utilize balloons like folk do with advising visitors which house has the birthday at. They don’t need to be Helium filled, just placed high enough to be noticed from the road as someone is driving past.

HONEY, I FORGOT THE KIDS

Don’t forget the kids on the day either. Have a look around the property, are there excess Lemons, Grapefruit, Manadrins, Oranges or perhaps some veges?

Get the kids to bag them into $0-50c or $1 bags of fresh produce to sell.

If you had a real excess of Lemons, they could make some homemade lemonade and sell that.

It gives them a way to make some pocket money and they can also act as further security or as extra “salespersons”.

You’d be surprised how many folk can’t resist a youngster offering them a pre-loved toy at 75 cents.

And finally, Good Luck.

Previous Part, Part V … here.

 

Thinking of having a Garage Sale – Part V

Tricks of the Trade – Keep an eye out for these capers … cont’d from Part IV

Feigning Interest

This is a common tactic for professional buyers too. They approach something, pick it up, look all over it, and ask the owner “Whats this and what does it do” all the while knowing full well exactly what it is and how much its worth?

Once the seller says “It does this and that” the buyer can act a little interested and ask its price if it isn’t tagged, and invariably offers a lowball price. Stick to your guns and let that person know that if it doesn’t sell (if its much lower than you think its worth and you still want to sell it) by the end of the garage sale then you can have it for that price.

In fact this isn’t a bad tactic for many items you are selling. If the offer, and most will be, made right at the beginning of your sale, tell them exactly the same, come back at 11am and we’ll discuss it then. Obviously you need to make your own mind up on the spot in regards to this.

From the few sales I conducted I’ve noticed that those “professional buyers” arrive in droves just before your advertised time, make lowball offers and rush off, presumably to the next one.

If you had taken them up on one of their lowball offers, then that will mean Mr & Mrs Smith and the 2 kids that show up at 9:20am won’t be buying that same item that was more relevant to them and you could of got the asking price.

ADVERTISING

To ensure you expose the sale to the largest audience you should look at the following and if possible do all;

Advertise in “Buy Sell Swap” because at this stage private ads are still free, and they have a dedicated Garage Sale Column. You can place your ads in the following ways:-

Nelson Ph 545-9977, Free Phone 0800 735 289, Free Fax 0800 735 5329

Email the add to – selbuy@xtra.co.nz, Post to – P O Box 273, Picton

Ad Deadlines – Wednesday 5pm…..don’t forget there is a 30 word limit per add.

Nelson Mail – there is a cost involved but they have great local coverage.

Contact via Nelson 03 548 0119 or Freephone 0800 800 515

Some shops and supermarkets have notice boards near the checkouts, and for most they are free, use them.

…to be continued…Part VI here.

Previous Part IV, click here.