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2010 Crystal Ball

It is always difficult to predict the next twelve months but some trends are starting to emerge and some earlier predictions are coming true.

I believe house prices, in the main centres, will continue to appreciate, especially Auckland which has already started to occur. This is due both to supply and demand. There are less new dwellings becoming available as there are fewer being built (especially in the apartment market), demand is increasing due to higher immigration figures, more Kiwis returning home and a natural population increase.

Interest rates will go up but in the second part of the year only as the Reserve Bank honors it’s commitment to the nation when it said it would keep rates low. The amount they go up all depends on the recovery happening, how strong it is and if unemployment is starting to fall.

Finance will be difficult to obtain for self employed, businesses and construction projects due to the demise of virtually all second tier lenders. This is a serious issue for the country and will hinder our future growth.

Each month the international credit crisis moves further into the background and hopefully next year it can be consigned to part of global economic history.

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Financial Planning And Real Estate

The following is huge news for Australia.

As you will see by reading the article Property has not been something Financial Planners in Australia could traditionally recommend (unless like me you also had a full real estate license).

Property investment specialist “Quantum Group” has launched a real estate product for financial planners to support clients investing in residential property.

Quantum PropertyLink Warrant allows financial planners to find, fund, purchase, settle and manage a residential investment property for their clients.

The product has been designed for the fee-for-service advice model where sales commission normally earned by a real estate agent is rebated to the financial planner, who can then choose to reimburse the client.

Quantum managing director Peter Gribble said financial planners have traditionally been limited to direct shares and managed funds because the industry was not equipped to recommend and manage retail property investment.

“We have overcome this problem by designing a very simple structure to encompass an investment property as a financial product, with a product disclosure statement and an independent research rating,” he said.

“Real estate agents generally aren’t qualified to provide financial advice and planners aren’t set up to search and find appropriate properties, so Quantum’s PropertyLink Warrant meets them in the middle.”

The product is designed so that financial planners can establish diversification for their clients with a prudent level of gearing of up to 70 per cent loan-to-value ratio, Gribble said.

“There is a big opportunity in real estate for financial planners as many of their clients are still jittery from the last sharemarket crash and want to diversify into property,” he said.

source:
Quantum bridges property gap for planners
Launches real estate product
By Victoria Papandrea

Investor Daily.com.au

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Difficult Lending

NEW FUNDER

Products

  • No Financials 75 (Limited income evidence required)
  • Asset Lend 60 (3 months bank statements showing sufficient deposits)

Loan Amount

  • Up to $600,000 per residential security in major metropolitan areas.

Interest rates

  • 1 year fixed – 8.49%
  • 2 year fixed – 9.35%
  • 3 year fixed – 9.99%
  • Line of Credit – 9.95%, no floating rate apart from this LOC

Term & Repayments

  • Up to 30 years, Interest only or principal and interest terms available

Servicing

  • Borrowers are required to evidence sufficient income to service the loan, without providing Financial accounts.

Fees:

  • Application : $1,000 fee payable upon acceptance.(refunded if loan declined)
  • Establishment : 1.5% (including brokerage of 0.65%)

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Case Study

This is the first post on CaseStudy.Co.Nz

It is here to merely check out if the application word press to twitter is working while I build the site.

The site will be up and running in the near future and will feature one of New Zealands leading accountants as he and I post various case studies based upon the experiences we have had over the years.

The idea came about at our last conference where Stephen and I were discussing the various business issues we had faced on behalf of various clients and about how we often created written advice that was then filed away and archived.

In our discussion it was quite evident from the queries we were getting from other accountants and financial advisers that some of these experiences we had had over many years would be a great and valuable resource.

With a back ground in Financial Advice, a mortgage broker and the owner of 2 real estate agencies I am able to provide a perspective that compliments Stephens exceptional accounting knowledge.

We hope everyone will enjoy the site as we populate it with the many case studies we will be able to provide.

If you have a particular scenario you would like us to write about drop us a line using the Contact page.

If you would like to receive our newsletter please subscribe using the subscription form below.


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The Areas we will be focusing on to begin with are:

Business Info about Business in General
Business Plans Specific Business Plan Information and Tips
New Business Thinking about starting a new business then these case studies are for you.
Investment Case Studies about Investment
Real Estate Real Estate, we all love Real Estate but is it really all its cracked up to be
Share Market The Share Market. It’s not as scary as you might think once you know a bit about it.
Tax Tax. Tax? Tax! What can we say about tax? A lot!!!
GST Oh yes our wonderful Goods and Services Tax
Tax Return Information about Tax Returns
Mortgages The things people want when they don’t have one and want to get rid of once they do have one.
Facts and Figures For those of us who like to quote facts and figures this will be the section for you.

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