NZ 1st homebuyers are ScReWeD...

[jr1973]

I feel for you. Move to Australia and skip the debt maybe? Tertiary education has become largely a joke in terms of cost for benefit. Australian Uni's are in a real mess with its asian oriented degree factories. If they were not tax payer funded profit oriented I wouldn't have an issue. For my 2 pennies worth... find some way to create value that you enjoy and charge a reasonable amount for it. People will always pay for value.

[SBQ]

I feel for you. Move to Australia and skip the debt maybe? Tertiary education has become largely a joke in terms of cost for benefit. Australian Uni's are in a real mess with its asian oriented degree factories. If they were not tax payer funded profit oriented I wouldn't have an issue. For my 2 pennies worth... find some way to create value that you enjoy and charge a reasonable amount for it. People will always pay for value.

What makes a country great is by it's reputation and I applaud the people of NZ for not having this culture of 'skipping to another country to evade debt'. Unfortunately, my elders have told me the Aussies have conned and ripped NZ off far too many times.

As for the pay for value ; I do believe NZ will still buy Made in China.

If you asked me about going to Uni in the 1990s, I would say it had a clear advantage. Nowadays, the price of tuition has skyrocketed and students going into massive debt ; earning a degree for most part, has no real application or relevancy to the NZ economy (obtaining a job in that field of study). How does this make sense? Are the Asian families wrong for wanting to send their students to earn their degrees as it seems there's no shortage of that trend changing, despite their job outcome is a lot less today than it was 20 or 30 years ago.

I'm often confused on the over-emphasis of education in NZ. I know people paying $26K a year for their CHILD going to some ritzy private primary school, while the NZ gov't pours huge amounts of $ into the public schools. What value am I missing here? Add up the cost from pre-school -> finishing university and you could end up owning a house (not an Auckland house but if the same sums were invested wisely over the same period, enough for the mean average cost of a house in NZ). Just another way how the rich are creating a divide in society (old boys club).

[NeverQuestion]

So here is where this gets Scary...

• Who has the most to loose during a property downturn?

Those with low equity.

• Who would that most likely impact?

First Home Buyers

• How many will be hit?

Those who bought in the last 3 years... Maybe more


There is no escaping the mess that is the Property Market.. This has been let to run for too long... I really do think that Central Banks have realized this mistake.. Hence the desire for QE... Next stop?! Hyperinflation.. Only way to get out of this now..

[SBQ]

So here is where this gets Scary...

• Who has the most to loose during a property downturn?

Those with low equity.

• Who would that most likely impact?

First Home Buyers

• How many will be hit?

Those who bought in the last 3 years... Maybe more


There is no escaping the mess that is the Property Market.. This has been let to run for too long... I really do think that Central Banks have realized this mistake.. Hence the desire for QE... Next stop?! Hyperinflation.. Only way to get out of this now..

All those 3 points are irrelevant as long as the person can make the mortgage payment. Don't forget, mortgage rates are at record lows meaning it's never been cheaper for a 1st time owner to buy. The banks are literally screaming for people to take their money, for just as long as they have a paying job.

What mistake are you implying that the central banks have done? Oh you mean they should do nothing and let the ship sink?

Please show me data that we are heading for 'hyperinflation' - i'm sick of this claim with unfounded evidence. The QE during the 2008 GFC had resulted in no negligible rise in inflation whatsoever! The amount of deflation from COVID would of amounted to record levels never seen before if the central banks did nothing. Back in April we saw the oil price collapse - is that not deflation? It would be if the gov'ts and central banks did nothing; making it a permanent state.

One thing certain, if the asset prices of houses collapse, so will the banks fall ; meaning, central banks can not afford to let that happen. Likewise with the stock market.

[stoploss]

All those 3 points are irrelevant as long as the person can make the mortgage payment. Don't forget, mortgage rates are at record lows meaning it's never been cheaper for a 1st time owner to buy. The banks are literally screaming for people to take their money, for just as long as they have a paying job.

What mistake are you implying that the central banks have done? Oh you mean they should do nothing and let the ship sink?

Please show me data that we are heading for 'hyperinflation' - i'm sick of this claim with unfounded evidence. The QE during the 2008 GFC had resulted in no negligible rise in inflation whatsoever! The amount of deflation from COVID would of amounted to record levels never seen before if the central banks did nothing. Back in April we saw the oil price collapse - is that not deflation? It would be if the gov'ts and central banks did nothing; making it a permanent state.

One thing certain, if the asset prices of houses collapse, so will the banks fall ; meaning, central banks can not afford to let that happen. Likewise with the stock market.

SBQ , It is not true that the banks are screaming for people to take their money .It might never have been cheaper interest rate wise for a 1 st home buyer , but currently with servicing requirements it's not easy . The banks have tightened up servicing requirements dramatically . Very little lending under 20 % LVR.......
Current numbers and the wage subsidy is still going ... ( note Australia has extended mortgage deferrals )
66870 customers on reduced payments , ( Min or interest only) $ 21 Bio of lending , 55406 customers on deferred mortgage $ 19.5 Bio lending ouch ....
https://www.stuff.co.nz/business/mon...liday-lifeline

[SBQ]

SBQ , It is not true that the banks are screaming for people to take their money .It might never have been cheaper interest rate wise for a 1 st home buyer , but currently with servicing requirements it's not easy . The banks have tightened up servicing requirements dramatically . Very little lending under 20 % LVR.......
Current numbers and the wage subsidy is still going ... ( note Australia has extended mortgage deferrals )
66870 customers on reduced payments , ( Min or interest only) $ 21 Bio of lending , 55406 customers on deferred mortgage $ 19.5 Bio lending ouch ....
https://www.stuff.co.nz/business/mon...liday-lifeline

Notwithstanding the LVR ratio, show me another time in the past where banks were more eager at lending? The banks are in the business at lending and the reason for their screaming? I agree the COVID situation has put many out of work - but that's a different story to those looking for their 1st home. As far as i'm concerned, if you can prove you have steady income, stable job in these tough times, and have the 20% down payment deposit ; I can't see why a bank won't say 'yes' ?

Again, banks make no money when they can't lend and they stand to lose a lot when the market collapses with record foreclosures. This means, the lending by banks needs to ease up even more.

[stoploss]

Notwithstanding the LVR ratio, show me another time in the past where banks were more eager at lending? The banks are in the business at lending and the reason for their screaming? I agree the COVID situation has put many out of work - but that's a different story to those looking for their 1st home. As far as i'm concerned, if you can prove you have steady income, stable job in these tough times, and have the 20% down payment deposit ; I can't see why a bank won't say 'yes' ?

Again, banks make no money when they can't lend and they stand to lose a lot when the market collapses with record foreclosures. This means, the lending by banks needs to ease up even more.

SBQ ,If you have the 20 % deposit and can service a loan at 6.65 % , and also have about $ 700 spare on top of all your expenses a month yes you can get a mortgage.But call a mortgage adviser locally and ask how easy it is at the moment I think you will find it verifies what I'm saying .....
They have battened down the hatches , come back in 6 months see how things are travelling by and large .
In regards when was it easier definitely 6 months ago , But for sure , in the 1990's when you could get a 95 % loan-banks didn't have to "lend responsibly" Ie: check all your outgoings etc.
The banks don't want to ease up on their criteria when they can see how many mortgages aren't getting paid right now ,it would be good money after bad.
https://tmmonline.nz/article/9765170...nding-concerns

[SBQ]

SBQ ,If you have the 20 % deposit and can service a loan at 6.65 % , and also have about $ 700 spare on top of all your expenses a month yes you can get a mortgage.But call a mortgage adviser locally and ask how easy it is at the moment I think you will find it verifies what I'm saying .....
They have battened down the hatches , come back in 6 months see how things are travelling by and large .
In regards when was it easier definitely 6 months ago , But for sure , in the 1990's when you could get a 95 % loan-banks didn't have to "lend responsibly" Ie: check all your outgoings etc.
The banks don't want to ease up on their criteria when they can see how many mortgages aren't getting paid right now ,it would be good money after bad.
https://tmmonline.nz/article/9765170...nding-concerns

Last time I engaged in a mortgage specialist was about 2 years ago and what a complete waste of time (and these brokers want their cut). This was for lending on bridge financing for a construction project - corporate loan as it was far easier to deal direct with the bank. In fact some major banks won't deal with mortgage brokers. The lady I engaged with had a different view of the mortgage market vs what the bank manager had told us ; well if the bank manager gets you the better deal, why bother with a mortgage broker?

https://www.bnz.co.nz/personal-banki...ome-loan-rates

I'm not seeing where you get the 6.65% figure. I'm seeing fixed rates all the way up to 5 years at under 3% in the above BNZ link.

I'll reiterate with interest rates so low, the 1st time home owner SHOULD be looking to get their first home.

[stoploss]

Last time I engaged in a mortgage specialist was about 2 years ago and what a complete waste of time (and these brokers want their cut). This was for lending on bridge financing for a construction project - corporate loan as it was far easier to deal direct with the bank. In fact some major banks won't deal with mortgage brokers. The lady I engaged with had a different view of the mortgage market vs what the bank manager had told us ; well if the bank manager gets you the better deal, why bother with a mortgage broker?

https://www.bnz.co.nz/personal-banki...ome-loan-rates

I'm not seeing where you get the 6.65% figure. I'm seeing fixed rates all the way up to 5 years at under 3% in the above BNZ link.

I'll reiterate with interest rates so low, the 1st time home owner SHOULD be looking to get their first home.

I think you will find all the major banks deal with mortgage advisers . The 6.65% ( and higher is the banks test rate ) So they are generally lending for 30 years, under the responsible lending code they use a "test' rate to make sure you can service the loan if rates go higher .
So its all very well to say I can borrow X and at 2.55 % and it will cost me $ 2200 a month . However the bank is assessing you at more than double that so you need to be able to service payments at the test rate .
Whats the average house price in Auck $ 1 mio, not too many 1st home buyers with 200 K sitting around able to service an 800 K loan ......

[blackcap]

I don't know what you guys are on about with this 20% thing. A mate of mine just purchased a house with a 10% deposit. So its never easier to get a mortgage now and with interest rates being very low....

Funny thing is I would never have lent to that guy the amount he has borrowed, but the bank did.