Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Don’t let interest rate increases delay your plans

FOR IMMEDIATE RELASE

Jennian Homes - Don’t let interest rate increases delay your plans

With the Reserve Bank increasing interest rates as expected, the country’s most awarded home builder Jennian Homes has offered up advice for homeowners questioning how the interest rate hike will impact them and how best to maximise the opportunity.

The 25 basis point rise in the official cash rate (OCR) to 2.75 per cent was fully expected for months, with the market reacting by more borrowers looking for fixed term rates to shelter from the expected interest rate increase.

Richard Carver, Director of Jennian Homes says that even with the small interest rate rise, home building remains a very viable option for those looking to enter the market in 2014. However, he stated that this decision should occur sooner rather than later to avoid resource constraints later this year and next.

“The building industry will enjoy a healthy climate for the next few years but extenuating circumstances such as the Canterbury re-build and the catch up in Auckland’s housing shortfall means that very soon resources in skilled contractors and sub-trades will be stretched to the limit.”

Some national building companies have preferential bank lending rates and special conditions with New Zealand banks meaning those wanting to build can benefit from these relationships. Mr Carver suggested that potential home builders need to choose their builder wisely to ensure that they pay the lowest funding cost possible.

“Banks have sought to better understand construction finance by aligning with larger building brands. Prospective homebuilders should research carefully when choosing their builder and enquire as to what extra benefits they can realise through the building company’s relationships with the banks,” he says.

With the LVR (Loan to Value Ratio) exemption on mortgages for new builds, those looking at entering the housing market would be well served to build new to take advantage of the lower equity requirements, says Mr Carver.

“We applauded the Government for exempting construction lending from the LVR restrictions and this has paved the way for those dreaming about a new home to seriously consider building over buying an existing home. Being able to get the home you’ve always

wanted, custom designed to meet your family’s lifestyle and your personality is now a viable option.”

Interest rates might be on the rise, but the outlook for the next two years plus sees the rates remaining at historically manageable levels. This coupled with a buoyant housing industry forecast means that building now gives would-be homebuilders an opportunity to realise gains out of bricks and mortar in the foreseeable future and the sooner they act hopefully the greater the benefit.

* Ends *


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Tourism: China Southern Airlines To Fly To Christchurch

China Southern Airlines, in partnership with Christchurch Airport and the South Island tourism industry, has announced today it will begin flying directly between Guangzhou, Mainland China and the South Island. More>>

ALSO:

Dodgy: Truck Shops Come Under Scrutiny

Mobile traders, or truck shops, target poorer communities, particularly in Auckland, with non-compliant contracts, steep prices and often lower-quality goods than can be bought at ordinary shops, a Commerce Commission investigation has found. More>>

ALSO:

Auckland Transport: Government, Council Agree On Funding Approach

The government and Auckland Council have reached a detente over transport funding, establishing a one-year, collaborative timetable for decisions on funding for the city's transport infrastructure growth in the next 30 years after the government refused to fund the $2 billion of short and medium-term plans outlined in Auckland's draft Unitary Plan. More>>

ALSO:

Bullish On China Shock: Slumping Equities, Commodities May Continue, But Not A GFC

The biggest selloff in stock markets in at least four years, slumping commodity prices and a surge in Wall Street's fear gauge don't mean the world economy is heading for another global financial crisis, fund managers say. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news