From the frontlines: End of week report for week ending July 31 2020

 
 
The market overall in most centres is extremely strong (we would use the term 'red hot' but it's a bit emotive ) and we are seeing crazy levels of activity!
 
Our clients in Wellington, Christchurch, Whangarei, Tauranga, Hamilton, Dunedin, Hawkes Bay, Palmy, are all reporting the same things, massive interest levels from home-buyers and very strong investment demand as well.
 
At our meeting in Manukau this week with our Advanced Results Team, the owner of the largest Real Estate franchise in South Auckland and several agents from his office ran us through the activity and sales results as we do most weeks, and they are as strong as we've ever seen in over 20 years of investing.
 
Auction rooms so full that 40+ people had to stand outside (see the photo, crikey ), multiple-offer situations on almost everything within a day or two of listing, some with 10+ offers! Agents desperate for stock and not enough coming to market to even closely...
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Students to earn NCEA credits through money education

This looks like a step in the right direction! 

I hope many schools adopt it into their curriculum's and run with it.

It’ll be sanitized to the extreme but it’s a start at least and if the kids can leave school knowing ANYTHING about money, they’ll be a hell of a long way ahead of me!

Very cool.

Original article HERE

 

High school students will now be able to gain NCEA credits by learning about money.

The Commission for Financial Capability (CFFC) has launched the new resources through the Sorted In Schools free financial capability programme on Tuesday.

The resources are aligned with unit standards and have NZQA accreditation allowing students to gain credits in level 1 and 2, and merit and excellence endorsements.

It is also available in te reo Māori for teaching in kura and Te Reo classes.

Students will learn about money management, saving, debt, goal setting, insurance, investing, KiwiSaver and retirement.

Director of learning Nick Thomson says the...

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The Absolute Absurdity of Paying any attention to House Prices or what’s in the news (June 2020) by Graeme Fowler

New article by Graeme Fowler below team.

As always, well worth the read.

You’ll recognise many of the alignments in messages in this to what we constantly bombard you with, particularly ‘if it makes sense now, buy it now’, and his love and trust for the media and commentators.

Enjoy! 

The Absolute Absurdity of Paying any attention to House Prices or what’s in the news (June 2020).

Here are a few headlines from various news articles, most of them over the past year or two.

1. Rotorua house prices up more than 25%

2. Rotorua - House sellers cash in, making median $200k as capital gains reach record

3. Tight Hamilton housing market pushes property values up

4. Hamilton’s house prices keep rocketing up

5. Fierce competition for Hamilton homes means prices likely to rise

6. Asking prices for Waikato homes increases 74% in five years

7. Waikato’s median house price climbs $60,000 in a year

8. Tauranga out-ranks Auckland as NZ’s most...

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Battle of the Banks: Insight into NZ's Current Interest Rate Wars: Mortgage Supply Co

Original article Here

bank-wars-interest-rates

In reaction to the speculation that the official cash rate and OCR may drop below zero in the months to come and the bid to win the business of Kiwi home buyers as the country recovers from COVID-19, we've seen the banks enter what looks like an interest rate war.

In fact, just last week ASB made the move to offer a record-breaking low two-year fixed rate of 2.69%, and Kiwi Bank responded to the forecast change by offering a one-year rate of 2.65%. These rates have literally never been seen before, even considering back in '08 after the GFC when interest rates plummeted by around 3% (from 8.6% to 5.9% fixed) the competitive and reactive environment we're witnessing now is utterly unprecedented.

So what's the reasoning behind the extremely low interest rates and New Zealand Bank wars? Well, ASB executive manager of retail banking, Craig Sims, stated;

"This has been a difficult time for a lot of our customers. While we have put in place a number of support...
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FREE VIDEO: The Power of Knowledge for Property Investment Success

Check out AssetLab coaches Arn and Sally on 'The Expert Series'. It contains some beautiful pearls of wisdom that might spark something in you, inspire you to create an action plan sooner rather than later for your financial freedom. 

Enjoy!

 

When you are ready, here’s how we can help you succeed:

Join our Facebook page for free training, updates, and chat.

Join us at an upcoming course or workshop. Subscribe to stay in the loop or check out our homepage: Events on our Homepage.

Get in touch for a chat about how we can help you with our selections of programs and coaching options.

Check out the incredible value in the Assetlab Masterclass HERE

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Airbnb: All but dead?: Steve Goodey

Airbnb: All but dead?

I wrote an article about moving my Petone, Lower Hutt 3 bedroom property from a long term rental to a holiday rental on Airbnb a few weeks ago.

https://www.stuff.co.nz/business/117932670/property-investor-my-house-makes-extra-1100-a-month-on-airbnb

I took the house from being rented at $700 per week ($36,400 pa) to getting $5,500 per mont from airbnb and booking.com ($66,000).

Some what astounding figures when you think about it but you need to consider the reality too that I’ve been paying $1,100 per month in cleaning fees, toilet paper, power and maintenance that’s over a above the previous arrangements.

I’d say in all reality my profitability is probably up by $800 per month or $9,600 pa, which really just makes it boarder line as to being worth doing or not.

 

What you need to consider is the cost of furnishings, the time it takes to...

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The best spend when renovating for profit: Steve Goodey

The best spend when renovating for profit

Quite often, I am asked what my “top 5 tips” are for renovations and where you’d get the most bang for buck. This is a hard question, because it largely depends on what each property needs.

I tried to answer the question the best I could, in an article I wrote for Stuff.co.nz a few months ago.

https://www.stuff.co.nz/business/117778203/heres-what-to-invest-in-if-you-want-your-renovations-to-put-money-in-your-pocket

Although the market has changed significantly since then, the advice still stands the test of time.

 

 

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LVR restrictions are gone – what it means to you: Steve Goodey

Original article here: https://www.stevegoodey.com/lvr-restrictions-are-gone-what-it-means-to-you/

Every commentary at the moment, is talking about the Reserve Bank getting rid of the Loan to Value Ratio restrictions.

People are saying it is a good thing for the market, but nobody has yet to explain why.

What does this mean for the investor and for the market as a whole? Is this move enough to “save” the property market from the impending recession?

 

So I grabbed some paper and tried to map out how it would actually pan out for the average property investor with a home plus two rentals. I discovered some interesting results.

I’d appreciate hearing what impact you think this will have – so post something back on Facebook and tell me how you see this going down.

  • Full credit to my cameraman/eldest son for the steady camera work.
 

 

 

 
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Which people will be “Most” affected by no LVR?: Steve Goodey

Original Article here: https://www.stevegoodey.com/which-people-will-be-most-affected-by-no-lvr/

The removal of all LVR restrictions is going to be a massive change in the property market mainly for the first home buyers. This is actually a good thing for investors too.

In this quick video I explain why.

 

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Getting Access to Money in the era of Covid-19: Steve Goody

Original Article HERE: https://www.stevegoodey.com/getting-access-to-money-in-the-era-of-covid-19/

It sure looks like there’s going to be some changes in the property market in the next few weeks and months.

Interest rates are round 3% and looking to stay there for at least a year, the restrictions on loan to value ratios are being removed and banks have been told they can relax their lending criteria from the reserve bank.

Add to that consumer confidence levels, unemployment rates and tourism numbers at zero and you can see a lot of uncertainty and equal amounts of opportunity.

I plan to start exploring this and getting my “Ducks in a row”, first thing I need to do is get some funding so I called my mate Dave Windler to see if we can make any sense of it all.

 

 

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