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

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news