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

 

Cairns Lockie Mortgage Commentary 20 July 2007

Cairns Lockie Mortgage Commentary

Issue 2007 / 12 20 July 2007

Welcome to the twelfth fortnightly Cairns Lockie Mortgage Commentary for 2007. We aim to keep you informed on developments at Cairns Lockie, Mortgage Bankers and the mortgage market in general. Previous issues of this commentary can be found on our website http://www.emortgage.co.nz/newsletters.htm

The Money Market

This morning (8am on 20 July 2007) the money markets were at the
following levels:

Official cash rate 8.00% (unchanged)
90 day bill rate 8.50 (up from 8.36)
1 year swap rate 8.59 (up from 8.46)
3 year swap rate 8.34 (up from 8.26)
10 year bond rate 6.86 (up from 6.69)
Kiwi dollar 0.7932 (up from 0.7817)


Regional House Prices

Quotable Value have recently released their year-on-year figures to June 2007 showing that house prices increased by an average of 12.2% from the previous year. This is no surprise but there were considerable regional variations. The Wellington market grew at 15.8%, Gisborne at 20.7% and Invercargill by a whopping 28.2%. The lowest increases were in our sunshine coastal areas, Hastings at 6.9%, Tauranga at 6.6% and Napier at 2.9%. The Auckland region was around the national average at 11.2%. The policies of the Reserve Bank, so far, are having little impact on the property market.


Building Costs Continue to Climb

One of the reason we have rising house prices is that the input costs to build new houses are continuing to increase. Over the past year, timber prices have increased around 15%, with steel and copper prices rising strongly as well. The price of labour (a large component of any new house development) is continuing to increase. Compliance costs are increasing as well. It is expected that, because of tighter rules under the Building Act 2004, following the leaky building problems of the 1990's, around 4% will be added to the price of a new dwelling. The new insulation rules that are coming in, may well add a further $5,000 to the building costs of a new house. Right across the country, councils appear to be increasing the costs of building consents. As new houses continue to cost more to build, this pushes up the cost of the existing second hand stock. This appears to be an ongoing trend.


Our Finance Company - General Finance Limited

As well as being a mortgage lender, we do take retail deposits. Our flagship rate is 10.15% for two years with interest paid quarterly in arrears. We are releasing a monthly interest option for investors who require more regular income. We use our investors' funds to provide bridging finance and second mortgage finance. If you are, say a property investor that has some spare funds available due to the sale of investments and would like to deposit your funds with a company that only lends these funds in residential property market, then we are the company for you. We keep you informed by quarterly and the odd special newsletter. Our new prospectus has just been released. Please call us if you would like a copy.


Property to Let - Greenlane

We have vacated our premises at 321 Great South Road and moved further down the street to 638. As a result our previous space is now vacant and we are looking for someone to occupy it. There is 220M2 available on a nice first floor with lots of natural light. There is a generous number of car parks available. It is ideal for accountants, lawyers, mortgage brokers or those that require a modern office space located in Greenlane with handy access to the motorway. Those that are interested, please feel free to enquire.


Our current mortgage interest rates are as follows:

Variable rate 9.95%

No Financials Home Loan 10.55

Jumbo Loan 9.95

One-year fixed rate 9.56
Two-year fixed rate 9.40
Three-year fixed rate 9.25
Five-year fixed rate 9.32

Line of credit facility 10.05

ENDS

Website http://www.emortgage.co.nz

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Economy: COVID-19 Lockdown Has Widespread Effects On Labour Market

In the June 2020 quarter, the seasonally adjusted unemployment rate fell to 4.0 percent, down from 4.2 percent last quarter, while underutilisation rose, Stats NZ said today. More>>

ALSO:

NZ Post: New Research By NZ Post Shows Online Shopping Grew 105% In Alert Level 3

New research by NZ Post into how the COVID-19 response has impacted the way Kiwis shop online, shows online shopping increased 105%* when the country moved into Alert Level 3, and may have changed the way Kiwis shop permanently. Online spend peaked ... More>>

ALSO:

Banking: Westpac NZ Lowers Merchant Fees For Small Businesses

Westpac NZ is rolling out a new merchant fee pricing structure that will lead to cost savings for more than 10,000 small and medium Kiwi businesses, and could make contactless transactions more widely available for customers. On 1 September, most ... More>>

REINZ: Million Dollar Plus Property Sales Increase 11.7% Nationally

The number of properties sold around the country for one million dollars or more during the first half (H1) of 2020 increased by 11.7% compared to H1 2019, with 5,426 million-dollar plus properties sold (up from 4,858 in H1 2019) according to the Real ... More>>

Waste: Government To Regulate Plastic Packaging, Tyres, E-Waste

The Government is stepping up action to deal with environmentally harmful products – including plastic packaging, tyres and e-waste – before they become waste. As part of the wider plan to reduce the amount of rubbish ending up in landfills, ... More>>

ALSO:

Bankers Association: Banking Becomes First Living Wage Accredited Industry

Banking has become New Zealand’s first fully living wage accredited industry, leading to nearly 1800 employees and contractors moving onto the living wage and gaining greater economic independence for them and their families. As of today, all ... More>>

ALSO:


QV Valuations: July House Price Index Illustrates Market Resilience

According to the July 2020 QV House Price Index (HPI) results out today , property values recorded a marginal increase, up 0.2% over the month. This is somewhat of a turnaround from June, after the national index edged 0.2% lower. More>>

ALSO:

Property: Queenstown Rents Experience Biggest Drop In Seven Years

Rental prices in the Queenstown-Lakes district saw the biggest annual percentage drop in seven years after falling 28 per cent on June last year, according to the latest Trade Me Rental Price Index. Trade Me Property spokesperson Aaron Clancy said ... More>>

Seismology: The Quiet Earth

As many daily activities came to a halt during lockdown, the Earth itself became quiet, probably quieter than it has been since humans developed the technology to listen in. Seismologists have analysed datasets from more than 300 international ... More>>

RNZ: James Shaw Says Kiwibank, Not Ministers Should Decide On Investors

Climate Change Minister James Shaw says Kiwibank's decision to stop doing business with companies dealing in fossil fuels is the right one. More>>

ALSO:

FMA: Kiwis Confident Financial Markets Will Recover From COVID-19, Plan To Increase Investments

Despite the majority (60%) of investors experiencing losses as a result of COVID-19, the outlook on investing remains positive, according to a Financial Markets Authority (FMA) survey. Most Kiwis (71%) were optimistic that the pandemic will pass eventually ... More>>

FIRST Union: Warehouse Using Covid For Cover As Extensive Restructure Makes Everyone Worse Off

(FIRST Union comments on The Warehouse consultation and proposed restructure) 'Unfortunately the Warehouse have done the disappointing thing and used Covid-19 to justify a bunch of operational business decisions that will leave hundreds of workers without jobs ... More>>

ALSO:

Stats NZ: Mixed Performance By Regions Leaves National Emissions Picture Unchanged

Approximately two-thirds of New Zealand’s regions recorded decreases in their total greenhouse gas emissions, while one-third of regions saw increases between 2007 and 2018, Stats NZ said today. “While some regions reduced their emissions, ... More>>