NZDF Pathways to your first home

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there you go reporting progress um now
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just in case
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oh
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it doesn't have this slide on here
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because
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we don't normally run this as a webinar
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we normally run it as a seminar
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just in case a bit of housekeeping as
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well if you haven't joined me before
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everyone is on mute
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but because you join through zoom if you
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move your cursor around down the bottom
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you'll see a little raise hand button
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hit that and that'll come up my screen
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over here uh i'll unmute you and let you
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know you've been unmuted of course and
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then you just need to unmute yourself
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and you can talk so you could use that
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option instead of chatting um as well
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so
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as is always the case this is my last
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webinar with you good people
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so is there anyone that on my last day
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really trying to sell this that would
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like to take us through the karakia
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so i'm laying the challenge out
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please i want to hear someone else's
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voice go through this because
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it's always been me apart from one
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spectacular
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rendition of it uh earlier in the week
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uh three
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two
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one
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oh yeah
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all right it must be because everyone
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likes me saying it so that's pretty cool
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um
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thank you and um yes again it's a terry
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filled moment because it's the last time
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we get to say it for real good selves um
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so in the middle there to
01:46
order a retirement commission is our new
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name which i have to say and i've said
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it a few times now it's much nicer than
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commission for financial capability
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which sounds very business-like uh main
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reason for
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talking about that is that we're a
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government department
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and we run these sorted websites so
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there's a little bit of the sort of
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website we'll look at today in terms of
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the mortgage calculator but aside from
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that we're not really delving into it
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too much
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but the
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as you can see the little mouse is all
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over the website he or she is our mascot
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and
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it's there to give you with free
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impartial
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and independent information and tools
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um to really just empower us to make our
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own financial decisions for our own
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financial journeys at ront
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so um the feedback's been pretty good
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around the tools people have been using
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them which is good
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um and hopefully uh we've had a few more
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sign-ups
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in there as well so
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let's get these creative juices flowing
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you've got something on your screen at
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the moment so you know what what springs
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to mind when you're thinking about
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buying your first home um and for those
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of us that are in our first homes
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already
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what what did you go through
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prior to that
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so chuck it on the chat and uh we'll
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share it around it's just
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quite nice to
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to gauge people's feelings as his
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feelings of excitement or
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anticipation or perhaps bit of
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nervousness because it's quite
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potentially the biggest loan we'll ever
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take out in our lives
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so what what do you think
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daunting yeah daunting unaffordable
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uh yeah it's a it's a common one in
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auckland isn't it auckland is out of
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reach uh being tied down yeah
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yeah definitely
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another one shares that opinion out of
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out of reach north yeah
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then you can you can almost argue that
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even some uh regions outside of auckland
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are getting a little bit um out of
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culture as well uh more and more like
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pipe dream um
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belief i got into a house before it got
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crazy but i worry for my kids yeah
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definitely hidden costs
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yes
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i know there's always fanciful stuff
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about buying home
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and then the reality sits in about oh my
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god i've got to pay what we've got this
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this this this and we'll actually go
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through that today so you have a very
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clear understanding of what the costs
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are to get into one but also some
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potential ongoing costs as well um all
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of the other costs that come with the
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house rates et cetera yeah
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personally my biggest concern is seeking
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bank approval oh okay yeah fair enough
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um we do talk about that a little bit
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just to give you a bit of an insight
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about how a bank
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looks at a loan um application and also
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what they're looking for so hopefully it
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gives you a bit of confidence around
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that
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um
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but yeah it is quite a scary experience
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i have to have to agree with that
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um
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single income advantage in your dreaming
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yeah
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can be
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but don't let it put you off from the
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goal of
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saving for a home because there's things
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outside of our control i.e the property
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market
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but you know keep focused stay on course
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who knows what the future might bring
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um quality of house yeah definitely
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location versus cost versus work
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opportunities yeah particularly
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and then if you don't have kids yet but
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if you dream of starting a family at
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some point you start to think about well
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are we in the right zone for school and
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those sorts of things as well it all
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sort of comes into play
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uh not ticking off
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not taking everything off on your list
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of dreams nice to haves but rather than
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having to make concessions to get onto
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coffee later at all yeah
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sort of uh um
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getting rid of
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what we have to the needs and wants
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almost giving up on some of the dreams
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to get into a home and potentially just
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putting them on hold for the bundle you
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know get that uh leaving it too late in
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life to apply for a mortgage
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yeah you can sort of feel as if you've
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run out of options can't you
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um
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but still opportunities
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always an optimist
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uh and then last but not least jen uh
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uh being unaffordable now and
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potentially even super unavoidable later
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worth it to stretch
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to get it when it is
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worth it to stretch it to get it when it
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was just unaffordable now
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yeah yeah um
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one thing to bear in mind as well that
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probably prices
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or the value of company i mean
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just think about it this way if they
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kept going the way they're going in five
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or ten years time
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you know average profit price in new
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zealand would be two million perhaps
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three million
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and you need to ask yourself is that
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realistic for a country the size new
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zealand
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no i don't think so that's my personal
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opinion so you know
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don't be worried about you know if the
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price has been doing this then it's
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going to continue doing that um there
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will be other factors that play at some
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point which will pull that back or might
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actually flatline it for a while as well
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so yeah
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oh kim you've officially got the first
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question and is it better to buy land
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build or an existing home um yeah well
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you know there's a there's a slight um
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uh i guess
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anecdotal
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evidence out there that if you buy land
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and build
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you tend to unlock a little bit more
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capital value in the process
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um but then if you buy an existing home
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then you might be able to buy that a
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little bit cheaper so there's pros and
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cons we might come back to that question
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when we start looking at the options
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um and then it'd be quite good to get
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some people's opinions that have gone
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through the
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the build rather buy to build process
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versus buying their first home that's
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already built as such
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um
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yeah good oh jamie welcome back
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um yeah older homes are not well
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insulated and you could potentially be
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buying someone else's problem that
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they're trying to offload as well so
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yeah some definite pros and cons either
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way um so what's coming up today part
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one
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sort my money first so this is what i
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mean about getting to know the process
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understanding what needs to be done
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and
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you know personally it's been from my
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experience once you
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do understand how the process has worked
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it tends to take away a lot of that
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anxiety or nervousness around actually
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going to a bank or sitting down with a
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broker and giving them all your
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financial information because you know
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how it sort of fits together
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so that'll be quite handy um so what do
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i need to pay
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for my home
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what support can i get because there's a
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different different types of support out
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there
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some of us know them all some of us sort
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of know about you know maybe kiwibuild
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or kimmy's over so today's about putting
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those all together and giving you some
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links to go to and doing almost like a
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pre-approval process to see what things
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you can get
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from it
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uh and anything else you need to
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consider so that's part one and like say
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a 5-10 minute break from there and
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just let stretch bars and break coffee
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for coffee type thing uh and then
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getting into great
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now they've approved
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how do i manage my mortgage um so three
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key things mortgage basics how do they
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work what are they um how do i set it up
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so looking at the different types of
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structures you can get so floating and
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fixed obviously then you've got
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revolving credit you've got table based
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you've got a reducing based loan but
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interest only
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and you've got offset loans so there's
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all these different types of loans out
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there which one works best or is the
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combination of them um and how do i
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maintain my financial well-being so also
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just rounding it out around
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potentially some of the stresses because
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having a mortgage
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is quite a long journey and quite a
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significant part of our lives
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um you know if we're not paying it off
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over the five 10 15 years it becomes 20
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25 potentially 30 years that's a big
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chunk of their lives so just making sure
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that if we ever had
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strife
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what
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support is out there for us
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um
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and yeah good point old electrical and
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plumbing too
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uh
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tell me about it because we have to
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replace our switchboard um here so old
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wiring into the places uh it's unsafe or
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it can't get in the load
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now um bear in mind that some of this
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well this actual presentation is
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traditionally face to face and there is
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a workbook associated with it
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um so you'll see on here on the top
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right corner
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keep an eye out for the stories in your
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handout
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so don't have a handout because we're
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doing it by webinar because we're having
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effective lockdown um so
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it's uh you'll see that case studies
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come up with um ahri judy mia and fever
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uh mateo and marie uh as well so just
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just try and bring a bit of i guess
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realism around people's situations and
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perhaps your own situation you might be
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able to
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sort of associate with these particular
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case studies
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so just to let you know
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very good now as is always the case
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keep the questions coming
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because i am keeping an eye on it i do
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look off this way on the screen
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um but yeah we've got two hours and i'll
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set the mark before that if we you know
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if we run through this pretty well then
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i'd be really keen to just you know
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throw out all your questions because
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between mark and i
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uh we'll be able to answer them or put
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them in the right direction
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uh by way of background as well just to
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let you know i have spent 30 years in
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financial services so i have been a
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home lender in a broker before in my
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previous days so
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all those questions around the process
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feel free to ask obviously they do
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change a little bit
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but i can hopefully give a bit of
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insight to that process in case you've
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ever wanted to ask a question
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and this is a pretty safe environment so
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you can do so so
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uh here we go some jargons
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and some words that are synonymous with
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the home buying process so you've got
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two on there um
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and
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two key ones really equity
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and we'll we'll explain what equity is
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as well um and something called lvr
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which is loan to value ratio
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and what that has to do with is your
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effectively the
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security that the bank is going to have
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which is the house that you're gonna buy
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um
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and the bank wants to know how much
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they're gonna lend against that house so
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uh i like to think of it as your hurt
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money so how much of your money are you
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gonna put into the home
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to buy it or when you buy it because the
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bank wants to know that okay well if
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they're going to put in their
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money as well
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what are some of the things that they
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can make sure that you know you can't
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walk away for it and you want to keep
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paying the loan
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um and you're focused on paying the loan
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and like i say hurt money is one of them
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so you can see here
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um for from an equity point of view and
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the amount of money you put in in your
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equity and home at the beginning of your
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deposit
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drives the loan to value ratio so
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talk this through here so what you have
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here is um
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a house
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purchase of five hundred thousand we
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should actually put that right on top so
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we know how much we're buying for so
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we're not going to calculate all this
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but the house we're going to buy is half
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a million bucks okay
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the bank
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traditionally lends up to 80
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now just
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keep that in mind for this example but
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there are
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potential avenues where they go up to 90
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and potentially 95
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the first home loan through tying order
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um but anyway we'll cover that as well
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so 80 percent of 500 000 is 400 000
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which means that deposit that you need
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to put into the property or which
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once you do that which will create the
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equity
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is a hundred thousand so it's 80 20. so
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the bank is going to give you the bulk
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of the money to buy the house and then
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you put in your deposit
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all good so far no one's asking any
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questions that it's good we had one
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person dropped out
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um
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but hopefully they'll drop them back in
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so no question so far so it's cool all
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right so we're all good so far so
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right down the bottom here is an lvr
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example all right so working through the
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same process
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applying for a mortgage 400 000 excuse
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me while i look at this and read this
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out to you for a home that costs 500 000
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so 400 000 because the amount that the
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bank is going to give you
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divided by 500 000 gives you that 80
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percent
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now it's
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probably teaching how to suck eggs but
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that's how it works um and as i said
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before there are some scenarios
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now it's important to know that because
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you know once you're in a home
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and you know everyone keeps raving that
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property prices if they're in it it's
14:54
going up and i know this is great the
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reason why people
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are concerned about property prices or
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you know are interested in them if they
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have a home is that
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as that value of 500 000 goes up
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if you were then to take that same
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calculation because you owe the same
15:12
amount of money
15:13
so let's assume that uh your 400 000
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loan is exactly the same
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but your property price has gone from
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500 to i don't know 600 000
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so your loan to value ratio
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has decreased because if you then took
15:30
that 400 000
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and divide it into the new property
15:34
value of 600 000
15:36
your loan value ratio has gone from 80
15:38
down to
15:40
the
15:42
you know i want to tell me quickly
15:43
before i can work it out
15:47
sixty-seven
15:51
just picture um so yeah 67 so
15:54
when a bank so going into a home they're
15:57
very interested in what deposit you've
15:59
got to start your equity in the home
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uh but then once you're in it they're
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also interested
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you will be more interested as to how
16:07
much equity you're starting to build in
16:09
that home
16:10
so bear in mind
16:12
two ways to build equity
16:14
excuse me in your home
16:19
paying the loan down so as you decrease
16:21
your loan your equity bills
16:23
and also as the property price goes up
16:26
your equity can build without you
16:28
actually doing anything
16:30
so there's two ways to remember that
16:32
i put down 12 but that was about the
16:35
difference right
16:38
um sorry jamie can you clarify that
16:40
slightly i just don't quite know is 12
16:43
your equity that you put in or your
16:44
deposit is that what you mean
16:48
80 minus still 10
16:51
67.
16:52
uh
16:55
oh okay yes yes yes so you i'm sorry so
16:58
jamie you bought a house this is what
17:00
you're saying bought a house
17:02
um
17:03
but you put in
17:05
no i'm still not following that you want
17:07
to um if you've got a mic you want to
17:09
maybe ask it would that be easier
17:21
oh
17:22
my calculation right sorry now i'm not
17:23
the same wavelength all right
17:25
so all we did was
17:27
excuse me
17:28
is let's assume that our loan is still
17:31
four hundred thousand
17:32
but a year later
17:34
um
17:38
well they are sophie they're not enabled
17:40
well they are enabled but if you put
17:42
your hand up
17:43
i will unmute you and then you can just
17:46
hit unmute and then you can talk um it's
17:48
just that everyone starts on youtube so
17:50
hopefully that answers that question
17:53
um oh thanks jen yeah so my just quick
17:56
example because we talk here in this
17:58
slide about going into a property
18:01
and you know what the bank looks at in
18:03
terms of your hurt money or your deposit
18:06
and that starts you off on equity okay
18:09
because that's how much you
18:11
own of the home
18:12
now in a quick example if we assumed
18:15
that in a year's time after you bought
18:17
it that's awkward jamie we're good um
18:20
it's probably my fault for coming out
18:22
with this random example um in a year's
18:25
time the loan hasn't gone down so it's
18:27
still four hundred thousand
18:28
but let's assume that the property value
18:30
has gone up to say six hundred thousand
18:33
then what you can do to work out your
18:35
equity is to take your loan amount at
18:37
that time
18:39
and divide it into the property value so
18:42
to jen's point 400 000 divided into 600
18:46
000 which is our new property value
18:48
comes to 67 percent and then that
18:51
is what we call your lvr or loan to
18:54
value ratio
18:56
or what the bank is interested in now
18:58
from from our point of view if we're
19:00
looking to buy or getting into a home or
19:02
in one
19:03
we're interested in that because that's
19:05
how much of the house we own
19:08
and the perfect way to be as we get to a
19:11
point where we own a 100
19:13
all the equity is ours and we can say
19:15
goodbye to the bank
19:17
we can ask them to discharge or release
19:19
the mortgage and that's our our home
19:23
which is what we
19:24
want
19:25
um
19:26
tristan's asked the correct question
19:28
would the banks view gained equity as
19:29
deposit
19:30
uh for example if you if someone secured
19:33
a price on a home and settlement was a
19:34
year later would the capital gain be
19:36
seen as hear me um
19:39
strictly speaking no
19:41
um
19:42
but it does open another world because
19:44
yeah so to your example tristan no
19:47
because what it is is
19:48
you're still they're still going to
19:50
settle on the original contract
19:52
so when
19:54
you bought a house for
19:55
500 000 and it's now worth a million
19:58
bucks
19:59
when it's built and completed at a
20:01
million bucks they're still only going
20:02
to set along
20:04
what they approve the loan for yes you
20:06
could then go out and do something with
20:08
your equity in your home depending on
20:10
the bank if they approve it
20:12
but they won't see that as
20:16
part of your deposit you'd still have to
20:17
put your own
20:18
money hopefully it answers that
20:20
interesting
20:21
and then the other side of that is this
20:23
is why people
20:25
that have owned homes that have had
20:27
strong
20:29
property price increases have gone out
20:31
and bought a rental property because
20:33
they can take that equity and use that
20:36
as a deposit
20:37
for the new
20:38
home
20:40
but we'll talk about that so that don't
20:42
worry about that just yet um
20:44
so kim's asked when interest rates go up
20:47
the loan amount technically goes up with
20:48
it
20:49
uh
20:50
no it shouldn't do shouldn't do so
20:53
if your interest rate goes up then the
20:55
bank will write to you and say
20:57
okay you now have to make
21:00
instead of 100 a week your payment's now
21:02
120 a week um your payment will change
21:05
to this from
21:06
such and such date um so that means that
21:09
your loan will still be on the same
21:12
um
21:13
trajectory as what they've approved
21:16
and it's the same way that if you were
21:18
in a loan and
21:20
interest rates dropped
21:21
the bank will write you and go hey
21:23
dennis you can go from 120 dollars per
21:27
week down to 100
21:28
would you like to do that um but we
21:31
always say don't do that because if you
21:33
can keep paying the same payments you'll
21:35
actually pay that loan back
21:37
so hopefully that answers your question
21:40
cool love it lots of good um
21:43
six or seven sentence questions coming
21:45
in so that's a good thing um so we're
21:47
all clear on what equity is um
21:50
especially when you first buy a home
21:52
that hurt money or deposit that's going
21:54
in
21:55
um and one important thing when we start
21:56
looking at what the banks look for or
21:58
what what if you sit down with a broker
22:00
as well
22:02
they also want to know how that deposit
22:05
is made up
22:06
so they want to know and this is why i
22:08
call it hurt money that some of that
22:10
deposit has been through your own
22:13
efforts to save
22:16
rather than you know having it all
22:18
gifted or
22:21
coming out of
22:22
something else where you haven't
22:23
actually saved money so to speak and so
22:25
they do look for that
22:27
um
22:28
what have we got here generally
22:31
so
22:33
i know that was your confusion so that's
22:35
cool that's all good um
22:37
all right so we're all got a nat oh that
22:40
was the one i was trying to think of
22:41
inheritances yes so it can be used as
22:44
part of your deposit but they're still
22:46
going to look for some form of your own
22:48
savings
22:49
and don't get me wrong your own savings
22:51
can be
22:52
your favorite saver or your flex and
22:54
saver
22:56
that you have through instagram if
22:57
you've set up checks instead of as well
22:59
whatever you can save up yourself is
23:01
definitely considered
23:03
back in the day it used to be five
23:05
percent of the ten percent
23:07
i don't know if it's the same but it's
23:09
definitely a question you do want to ask
23:11
of either your broker or the bank you
23:13
sit down with them
23:14
but inheritances are allowed to be used
23:17
but it's not allowed to be the whole
23:18
deposit that's the key thing um
23:22
and oh yeah cool so i've got an example
23:24
here saying that equity jumped from 50
23:27
up to 80
23:29
uh and that's because the house going up
23:31
in value
23:32
um so yeah i mean it's it's definitely
23:35
eye watering
23:37
um
23:38
but i always go back to pure basics and
23:40
numbers that well can it keep going the
23:43
way it's going for the next five ten
23:45
years i mean that that's where
23:47
if you start working out what the value
23:49
will be
23:50
and our salaries aren't going to keep up
23:52
with that so how can we expect house
23:55
prices to get up there as well so what
23:57
yeah
23:58
so
23:59
what are lenders looking for so that now
24:01
this i'm going to reflect on between the
24:03
presentation and
24:05
uh
24:07
some websites
24:08
um
24:10
oh okay the value only increased a lot
24:12
in the first couple of years yeah i mean
24:14
it does that you and um you know if
24:17
you're well there's a couple of websites
24:19
that um
24:20
i use a bit um to
24:23
[Music]
24:24
uh well do research
24:26
for people as well but
24:28
homes dot co dot nz
24:31
which i'll show you up later on but it
24:33
can give you an idea of the value of the
24:34
property now sort of the market value
24:37
potentially if you're looking to buy a
24:38
house you can do a bit of background
24:40
research on the house you buy into it as
24:42
well
24:43
and there's a couple other websites too
24:45
um so
24:46
what is the bank looking for um so here
24:49
we go what a lender's looking for
24:52
um now it's it's
24:54
this is on average across all lenders
24:57
okay so bear in mind that there might be
24:58
some slight
25:00
idiosyncrasies between members
25:03
but generally speaking for a history
25:05
so there's a credit check but they
25:07
definitely want to do a credit check on
25:09
you
25:10
um and that's regardless if you bank
25:12
with the bank or going for a broker or
25:15
approaching another bank they will do a
25:17
credit check
25:21
yeah good question jamie i'll come to
25:23
that one because i'm going to show you
25:24
the web link and then also a sample
25:26
credit report what they look like just
25:28
so you know ah and that will answer your
25:30
question about what is a printer check
25:33
and then also
25:34
excuse me
25:36
three to six months worth of bank status
25:37
now
25:38
this is key because what the bank or the
25:41
lender is trying to do is though
25:43
they've they've got either got an
25:45
application in front of them or they've
25:47
got a good sale sitting in front of them
25:49
and they need to try and figure out as
25:51
quickly as possible
25:52
are they a good risk so these are the
25:55
steps they step through to figure that
25:57
out so they'll they'll take into account
25:59
some
26:00
um
26:01
some
26:03
quantitative data as you call it that
26:05
comes in so that will be
26:07
your credit check so what is your credit
26:09
score do you pay your bills on time and
26:11
i'll show you that in a second
26:12
uh your bank statements especially if
26:15
you are going to another bank that you
26:17
don't bank with because what that will
26:19
show
26:20
is and what they're looking for is have
26:21
you kept your accounts in order and when
26:24
i say an order
26:26
if you have no overdrafts
26:28
have you operated it between zero and a
26:30
positive balance you're not allowed to
26:32
overdraw and if you do overdraw
26:35
what were the reasons for it because
26:36
they will ask these questions okay
26:39
so that's figuring out your your history
26:43
your ability to save your ability to run
26:45
accounts that's one part of it
26:48
second part is they look at your
26:50
employment history so okay do you have a
26:52
set of job are you have since covert
26:55
they now also look at are you in a job
26:59
that isn't going to be affected by
27:01
covert implications i.e lockdowns
27:05
so there has been a real change in
27:07
stance around hospitality
27:10
tourism type sectors even the flight
27:13
industry sector
27:14
so they definitely look at that a lot
27:16
closer
27:19
and sufficient deposit so this is my
27:20
point around if you're going into 10 or
27:22
20
27:23
or run you know even five percent
27:26
deposit for those
27:28
that's slightly different so 10 20
27:30
percent deposit whatever it is they will
27:32
look at how that deposit
27:34
was made up
27:36
so like i say some of it has to be yours
27:38
your own savings like kiwisaver or flexi
27:41
or your own savings accounts
27:43
and some of it can be gifted from say
27:46
parents or mysterious benefactors
27:50
some of it can be inheritance as well
27:53
but they really want to know how that
27:55
deposit has come together and again
27:57
linking back to the bank statements
28:00
if it's been saved they will want to
28:02
look back
28:03
at
28:04
how it got saved
28:06
um so sometimes if you dealt with a
28:08
broker already you might be
28:11
they may say oh look you actually need a
28:13
bit more history so we'll get back
28:15
together in say three to six months
28:18
and then the reason for that is then
28:20
you've got that history of savings
28:22
in those bank statements and the bank
28:25
can potentially tell you the same as
28:26
well
28:27
the more helpful staff of banks tend to
28:29
do that
28:31
so that's
28:32
what you need to be aware of is those
28:34
key things and then last but not least
28:36
they do a test so their own little
28:39
calculators they want to make sure that
28:41
based on your deposit uh
28:44
so
28:45
purchase price of the house less deposit
28:48
equals the loan amount you're going to
28:49
borrow can you afford it so if you add
28:52
up all the factors of have you been
28:54
paying your debts on time are you good
28:56
with money so to speak you've got a
28:58
steady income
29:01
and you've been in the job a while
29:03
because they do look at
29:05
job stability as well so
29:07
you might have faced the questions
29:09
before where on an application form
29:11
they'll ask how long have you been in
29:12
the current role
29:14
and it's either if it's two or three
29:17
years less than two or three years then
29:19
they ask for your previous role
29:22
and
29:24
keep the questions coming i haven't
29:25
forgotten about them by the way um
29:27
just need a little drink of water
29:28
because i do a lot of talking in this
29:30
one
29:33
the reason why they want to know about
29:34
your previous role is
29:36
it all adds to that job stability factor
29:39
so
29:40
was dennis a um
29:43
a chef and then now he's a managing
29:45
director of a company
29:47
hang on how did that happen
29:49
and it's not to say they're going to say
29:50
no but it will open up some questions
29:52
around that um so always always always
29:55
be prepared that
29:57
if there's um
29:59
if it looks like you've gone from one
30:00
job to another
30:02
um and i'm talking about not within ends
30:05
of df because that's considered you know
30:07
one whole employer but if you've gone
30:10
from you know
30:12
i'll get this completely wrong but
30:14
recruit to a trade
30:16
um
30:17
or recruit to an officer to trade
30:20
whatever it might be um that's not
30:23
really changing your jobs that's career
30:26
progression so that that's cool that's
30:28
all in today but if i was to be um i
30:31
don't know
30:32
in new zealand
30:33
nzdf
30:35
westpac in the space of three years
30:38
then they'll lead to some questions
30:39
around okay well what how stable is your
30:42
job
30:43
and how stable would you income positive
30:46
so yeah always always look at that um
30:50
um so what else was it going to say oh
30:53
then the other thing they look at as
30:54
well as part of the application process
30:56
is your
30:57
residence so where are you living have
31:00
you lived there for more than two or
31:01
three years as well
31:03
and exactly the same thing they're
31:04
looking for that stability resident and
31:06
again they're not going to say no
31:08
because you move
31:10
but they will ask questions about it
31:12
that's that's the key
31:14
um
31:20
thanks jen that's awesome um jim just
31:23
put it on there summarise the questions
31:25
um at the start of the webinar um
31:28
so if i just have a quick look back um
31:32
so jamie asked for the credit check
31:33
there are three different companies
31:34
which one do you recommend
31:36
um yeah there's no real
31:38
um
31:41
company over the other that's
31:43
recommended there might be one that's
31:45
bigger than the other
31:47
but in effect
31:49
depending on who you've shared your
31:50
financial data with
31:52
i would say most of them would would
31:54
pick that all up
31:57
so but i'm going to show you a sample
31:58
report in a second and the person that
32:00
asked what is a credit check yes
32:02
i will show you a sample report and a
32:04
credit check is to figure out your
32:06
credit score
32:08
and it gives a lender an insight into
32:10
who you are as a potential borrower
32:14
and it's just one of the tools they look
32:16
at but having said that if your credit
32:18
score is really really low
32:20
due to some not paying bills
32:24
getting into a you know a bit of a
32:25
sticky situation with some loans
32:26
whatever it might be so the credit score
32:28
is low
32:29
they do reserve the right to say no so
32:31
we can't improve you come back when your
32:33
credit's going through and you can
32:35
improve it which is important tonight
32:37
um what if your partner is a sole trader
32:39
within consistent income yep um
32:42
so don't be put off by sole traders or
32:45
being a sole trader sorry to say um but
32:48
with inconsistent income the bank would
32:50
typically look at last two or three
32:52
years worth of
32:54
balance sheets if you've got those or
32:56
financial statements
32:58
um and
33:00
you will have a problem or people hit a
33:02
problem if they don't declare income
33:05
through their financial statements to
33:07
the ird because if it's like i do some
33:10
cashiers whatever it is there is as
33:13
a summary of it the bank won't even
33:15
consider that um they only want verified
33:18
sources of income and if it goes through
33:21
ird that's verified because you have to
33:22
pay tax on it
33:24
so yeah just keep that in mind but
33:26
they've not fussed that inconsistent
33:28
they want to know okay over a two or
33:30
three year history
33:32
okay well
33:33
yeah that year was great
33:35
this year not so much that year was
33:37
better what's been the average
33:40
that would be the key they're looking
33:41
for
33:42
uh does overseas work also count um yeah
33:44
definitely it counts um just be aware if
33:47
you own assets overseas and bringing
33:50
them back
33:51
um again they will want history on that
33:54
and especially if you've got savings
33:56
overseas you have to prove that you've
33:58
been able to save it but the same things
34:00
apply that's why i've kept this nice and
34:01
simple because it's those core
34:03
assumptions or core things they look for
34:06
um
34:07
oh thanks kurt so jamie's just gone back
34:09
to heard about centrics seeing the k and
34:11
keep going i think which is good
34:13
um
34:15
comment from kim looks like we'll have
34:16
to get the kids to go in with us as we
34:18
are only in 15 years um complicating oh
34:22
it can do it just makes it a little bit
34:23
out of the ordinary um and i think
34:27
i think it's worthwhile to say as i
34:29
depart this particular
34:31
presentation of the website
34:34
if you do have stuff out of the ordinary
34:36
um you do have a brokering service
34:38
available through nzdf through milestone
34:41
direct
34:42
talk to them because they are mortgage
34:45
brokers or as they're called now
34:47
financial advisors
34:49
so they will have seen this before or
34:51
experienced some similar situation
34:54
so always talk to somebody that can
34:57
well this is my opinion canvas the
35:00
market because unless you're happy to do
35:03
it yourself because every bank does look
35:05
at things slightly differently
35:08
even though generally on average they
35:10
look at the same rules
35:12
some banks may be more
35:14
keen to lend to
35:17
certain occupations while some banks may
35:19
not be so
35:20
dealing with a broker that can access
35:23
multiple different banks they will
35:24
understand which bank may actually suit
35:26
you best for your situation
35:28
it's just one thing we've picked up
35:30
along the way
35:31
um thanks jen for summarizing those
35:33
questions
35:34
um
35:36
uh most of the questions may be more
35:37
related to the choice of the property
35:40
maybe touching these more um yeah yeah
35:43
the
35:46
uh i don't know about that but let's
35:48
focus on credit checks for a second um
35:50
so
35:51
here is a web link i always put these on
35:54
chat so
35:55
you can just
35:58
copy and paste them uh and save them but
36:00
this is through government and this will
36:02
tell you you know check your own credit
36:04
check and then you've got centrics alien
36:07
and equifax
36:08
and i think someone's already mentioned
36:10
centrix being yeah okay so
36:13
give that a go the links to the websites
36:16
as an example this is a centrix credit
36:19
check they all follow a similar format
36:23
just different
36:24
graphics i guess uh but the key is your
36:28
credit score all right so you can sort
36:30
of see that there's a goes it's like a
36:33
fire
36:34
scale you know
36:35
everything's fine no fire all fires are
36:38
allowed it's fine or through to a high
36:40
risk zone um so this particular score of
36:43
493
36:44
is not
36:45
um oh thanks robin uh robin just put
36:48
creditsimple.co.ngb3
36:51
and this particular credit score is not
36:52
a good one because
36:54
if i show you where is it
36:58
it's not going to be on there oh it's on
37:00
this page here
37:03
no it's not on that one
37:05
i thought it was on that odd i was
37:07
looking on invest media sorry um it goes
37:10
up to a thousand you can see the top end
37:12
uh and
37:13
typically the bank one wants to be
37:15
around the
37:17
500 550 600 plus type thing you want to
37:21
be in the in the green zone so to speak
37:24
um but it goes through and says okay
37:26
here's your name date of birth make sure
37:28
you're on the right track
37:30
um
37:31
summary so judgments none so it's tick
37:33
insolvency so there's been two notices
37:35
of insolvency served against this person
37:38
that's not a good thing
37:41
so it's definitely multiple insolvencies
37:42
credit defaults there's been four
37:45
retail energy arrears no so what that
37:48
means is they're paying their power
37:50
bills in time so this may surprise you
37:53
if you don't pay your bills on time or
37:55
behind in your bills power phone water
37:58
whatever it might be
37:59
then it does get captured on a credit
38:01
score and it can lower your score all
38:03
right
38:04
um and then
38:06
so you got a score which is what the
38:08
bank looks at and then also
38:09
the stuff and as i scroll down
38:12
you'll see um
38:14
this person has a what looks like a
38:16
mortgage
38:18
and it says okay number of counts is two
38:20
number of accounts reported two
38:22
overdue report last six months none
38:24
overdue reported last 12 months or two
38:26
so there's been two instances of being
38:28
overdue in the last 12 months
38:30
and then in the last two years there's
38:32
been eight instances of being overdue in
38:34
payment
38:35
um so
38:36
again
38:38
it will lead to questions that's the key
38:40
um so if you
38:42
if you go in and apply you need to be
38:45
aware that they'll ask you questions
38:46
about credit check or your history and
38:50
you know there's there's nothing wrong
38:51
with having made an error with payments
38:54
whatever it is but you need to be very
38:55
clear and upfront about that
38:57
because it does it can come out in these
38:59
types of reports
39:00
but then you can see file activity so
39:02
what have you done with your name so to
39:05
speak
39:05
uh in the past so have you applied this
39:07
is where it shows up if you apply for
39:10
credit check lots and lots of times
39:12
and i mentioned this the other day but
39:13
that can lower your score as well
39:17
um if you
39:19
want to see a sample of that report yeah
39:21
just click on this link in the link i
39:23
just shared
39:24
and then have a good look through and
39:26
the key thing i want to say about this
39:28
is
39:28
even though you score if it's a low
39:31
score
39:32
you can
39:33
bring that back up again okay
39:35
so
39:36
by bringing it up it means paying your
39:38
bills on time keeping your accounts
39:41
and credit and also if
39:44
need be
39:47
looking at any credit defaults
39:50
because you know if you're paying them
39:52
or if they're active
39:54
how can you
39:55
you know get rid of them so to speak
39:58
um this one doesn't have any court
40:00
judgment so that's fine and insolvencies
40:03
um
40:05
so it tells you
40:06
you know the dates back 2006 and 17 for
40:09
this particular person they're companies
40:11
they are part of either as a shareholder
40:14
director
40:15
and then any name badges so
40:18
again this information is all yours and
40:21
in terms of the privacy act you have the
40:23
right to correct it so if you find that
40:26
someone's gone out and used your name
40:29
to create some debts borrow money
40:31
whatever it is
40:33
and it's not yours then you have the
40:35
right to get it corrected because it is
40:38
your information oh hang on all of that
40:40
uh there you go you can talk wait yeah
40:43
you're on
40:48
just talk away all of it should be good
40:55
hey i had the same question as mel uh
40:58
which is basically that uh i don't have
41:01
any outstanding debt or anything but
41:02
i've also got no credit card history at
41:04
all
41:05
is that do you recommend getting one and
41:07
then just sort of
41:09
no we're not not using it but
41:13
getting one just to say i have one and
41:14
then making the payments but not using
41:16
that often or is it not even worth it i
41:18
feel like that's more of an american
41:19
thing than credit cards but
41:21
yeah
41:22
it's a great question um oliver i'll
41:24
just pop your immune again and um
41:27
the reason why it's a great question is
41:28
because back in the day when i was in
41:29
banking it was a sort of an urban legend
41:32
to say oh i don't have a credit check
41:35
i never borrowed money i need to get a
41:37
credit card and that'll start giving me
41:38
a credit score which technically is
41:41
correct
41:42
um but the fact is it's a credit score
41:44
nowadays and there's a whole host of
41:46
different things that go into that
41:49
so
41:50
if you what i suggest to yourself oliver
41:52
and to mel
41:54
go and get your free credit check and
41:56
you'll be actually surprised you will
41:58
probably have a score if you've been if
41:59
you've got bank accounts in your name
42:02
and if you've been paying bills in your
42:04
name as well
42:05
you will find that you will have a
42:07
credit score
42:08
now
42:10
having a credit score that i mean if
42:12
you've kept your bank accounts cool and
42:14
your payment's up to date
42:17
you will have a reasonable score and
42:18
then the other thing that can complement
42:20
that because what they're going to look
42:22
at is
42:24
i've gotten rid of it but if they look
42:26
at the history of your inquiries if
42:28
that's nil
42:29
then that's a good thing because that
42:31
means you haven't gone and got higher
42:33
purchase agreements if not leaving or
42:37
buy now pay later arrangements at the
42:39
local shop
42:41
that shows that you don't need to borrow
42:42
money to live so to speak that makes
42:45
sense
42:46
um
42:46
so what the bank will then look at is
42:48
okay well cool oliver now what savings
42:51
have you got oh you're going kiwisaver
42:53
great so how long have you had kiwisaver
42:55
that's been building up while you're an
42:57
ngd flexi saver awesome how long have
42:59
you had that you know look at all the
43:01
deposits that you made in there
43:03
any withdrawals you made as well
43:05
they'll also look at your bank statement
43:07
so here's why they need three to six
43:09
months because they want to see
43:11
how well a how are you spending money uh
43:14
but b how you've saved money and how
43:16
you've managed money
43:17
so
43:18
yeah don't feel as if you have to go
43:20
into debt to start that credit process
43:23
you will definitely have something on
43:25
file
43:26
if you've had anything in your name that
43:28
involves a bill
43:30
or a bank account so to mel and oliver
43:33
hopefully that answers that
43:34
please do
43:37
say something
43:39
got lots of questions got we're almost
43:41
first out already um
43:44
yeah it can be if you haven't been in
43:45
business very long definitely employ an
43:47
accountant to do some cash flow
43:49
forecasting if it's part of that process
43:52
um just to give the bank a bit of an
43:54
understanding of how the business will
43:55
shape up over time
43:56
um understand that generally the
43:58
repayments bank for that you afford is
43:59
one-third of your gross weekly income if
44:01
you do not need to gross requirement
44:02
that shows your bank records that you've
44:04
been saving more than in the payment for
44:05
the bank paid perception
44:07
again to your question tristan i would
44:09
engage the services of
44:12
a broker
44:14
and the reason being is that it may well
44:16
be with one bank they do that but
44:18
another bank that may be a bit more
44:19
lenient and they will know which bank
44:21
they can put you through plus they also
44:23
have assessment calculators that pretty
44:26
much covers all the banks so they can
44:27
tell you there and then how it looks
44:29
as well as having the experience of
44:31
having doubt with previous cases before
44:35
so hopefully that answers your question
44:36
tristan uh oh thanks jamie for sharing
44:39
with that
44:40
um
44:42
never had a credit card only loan has
44:43
been student loan how's that pretty
44:45
checked um yeah so student loan again
44:47
you could show
44:49
yeah the payments are a little bit
44:50
different because it's
44:51
all attached to your income
44:53
so the moment you start earning over a
44:55
certain amount the payment just happens
44:57
like that so it's a bit harder to show
45:01
your ability to pay down debt because
45:03
you have to pay it
45:05
um but
45:06
the on the flip side um
45:09
i think student loans were around when i
45:11
left mortgage lending back in the day
45:13
this was a long time ago
45:15
we weren't instructed but we were sort
45:17
of told look if someone has student debt
45:20
that's fine because they've taken that
45:22
debt out for educational purposes and to
45:25
further their career so to speak
45:27
um
45:28
we have to allow for it in servicing i.e
45:31
can they afford that as well as the loan
45:33
but we're not to sort of be too um
45:37
hard and fast saying oh sorry you've got
45:38
fifty thousand dollars worth of student
45:40
debt you've got to pay that offers
45:41
before you borrow money
45:43
so hopefully that makes sense so as long
45:44
as you can afford both then you're all
45:46
good
45:50
is it possible for you to have credit
45:51
score of 600 plus but still high risk uh
45:55
conceptually i guess
45:57
maybe
45:59
because there's those other factors at
46:01
play around your savings history you may
46:03
well
46:04
um
46:05
maintain your accounts pay bills on time
46:07
but if you can't save money or
46:10
um
46:11
your deposit's not made up of real
46:14
consistent savings it may well be that
46:16
with a higher risk
46:18
i'm not sure how else i could answer
46:20
that one
46:21
um does anyone have a thousand score i
46:23
don't know to be honest i haven't even
46:25
checked mine i don't think i would even
46:27
have a thousand um
46:29
um
46:30
jamie yes you know that same day i could
46:32
call
46:33
thanksgiving that's awesome
46:35
there are heaps of brokers on the market
46:36
at first time buyers
46:38
oh yeah good question so um mark will
46:41
touch base on this at the end as well
46:45
but nzdf has a good working relationship
46:48
with milestone direct
46:50
your financial advisory
46:53
people so to speak
46:54
and they have oh mark's already answered
46:56
that as well so um they have more ritual
46:59
financial advisors now they're called
47:01
mortgage brokers through there
47:03
and the cool thing is they're well
47:05
acquainted with nzda arrangements and
47:09
employee and occupations
47:11
so a bit of a
47:14
insider um
47:16
broker track there i guess which helps
47:18
because it helps with those
47:19
conversations because they'll understand
47:21
what's going on a lot quicker so thanks
47:23
very much
47:24
um also i believe that anyone can set
47:26
themselves up as a breaker i'll use mzda
47:29
fonts yeah cool thanks kevin um yeah
47:30
there's a bit of a bit of a process now
47:33
to become a financial advisor um
47:35
but yeah you're quite quite right how do
47:37
you find the right one and i would say
47:40
start with um
47:42
the nzdf arrangement one because they're
47:44
on hand are there and then you know if
47:47
you're sort of feeling i want a second
47:48
opinion then ask friends or family who
47:50
they've dealt with
47:52
and build up a short list of two or
47:54
three and run it like a job interview
47:56
pick up the phone
47:58
um ask them the questions how are you
47:59
paid what banks do you deal with
48:02
that's important question because some
48:04
are aligned maybe one or two banks
48:06
whilst others are aligned to all banks
48:07
so you know those sorts of questions you
48:09
can definitely feel comfortable in
48:12
asking
48:13
oh okay all right
48:16
back to
48:17
this lots of questions which is good um
48:20
so in terms of the sorted side obviously
48:24
we've run if you've all been with me
48:26
these last few days
48:28
we've run a bunch of sessions on
48:31
getting your
48:32
financial house and order so to speak
48:36
but the sorted dot org dot mz
48:41
is your best place to find that sort of
48:44
information now the other place to find
48:46
all sorts of great information and tools
48:48
as well is through the force financial
48:50
hub
48:50
so i won't dwell on that one too much
48:52
because we've been answering lots of
48:53
questions
48:54
um so
48:56
let's look at some of the avenues that
48:57
are available to you now what i'm going
48:59
to do here is
49:02
cover it and then give you the links and
49:05
what i'd suggest you do is actually
49:07
there's one link i'll give you through
49:08
kind of order
49:10
where you can complete a an online
49:12
anonymous
49:14
text to see if you qualify for any of
49:16
these um components that i'm going to
49:19
talk about and that can be quite useful
49:21
even if you've got a pre-approval have a
49:23
look through and just see if it's
49:24
something you can use um so the first
49:26
home loan
49:27
you may or may not hear about this but
49:30
it allows you to borrow
49:33
95 so effectively you only need to find
49:35
the same deposit home loan
49:37
um
49:38
so
49:39
sort of a brief checklist here uh first
49:41
time buyer
49:43
as a single person uh do you earn less
49:45
than 95 000 a year or if you're a couple
49:48
or two or more people less than 150 000
49:53
those are your two quick rules
49:55
then there's also
49:56
regional price house price camps
49:59
so that's the
50:01
i guess the five percent home loan
50:03
so effectively you're going in with five
50:05
percent
50:06
and the bank comes in with 95
50:08
um
50:13
oh okay thanks thanks for sharing again
50:15
um again it's you know it's um each to
50:18
their own and hopefully
50:20
um you find the right one i guess
50:23
um so what was going to say so yeah five
50:26
percent from you 95 on the bank now
50:29
there are only certain banks that deal
50:31
with this type of lending
50:33
but again i'm going to give you the
50:34
links and have a look through and find
50:36
out a bit more information
50:38
the next one is the first home grant all
50:40
right sound up this one is
50:44
attached to your keyword saver okay so
50:47
do you qualify for first hand grant so
50:50
what you've got here are two types so
50:52
you've got an existing home situation so
50:54
if you're buying a home that's already
50:55
built on the market so to speak and then
50:57
you've also got one which is what they
50:59
call new homes or a new build so if
51:01
you're buying land and
51:03
building a house on it okay
51:05
so the test is haven't you contributed
51:08
to kiwisaver for at least three years so
51:10
that's your first marker
51:12
then
51:13
it goes out so you can see
51:16
i've got to use my cursor on my hands at
51:18
the same time
51:19
a thousand dollars per year up to a max
51:22
of five thousand all right
51:24
so the contributing to kiwisaver for
51:27
three years
51:29
is a very very key test
51:31
so bear in mind
51:33
the key word in that that's contributing
51:36
so if you've gone on a repayment uh
51:38
contribution holiday or anything like
51:39
that and haven't contributed
51:41
it's the
51:43
sum total of how many months
51:46
up to that three years you've
51:47
contributed if you fall short by two
51:49
months
51:51
i've had this uh example from the
51:53
marketing
51:55
development center where they're doing a
51:56
lot of kiwi build homes
51:58
they will actually work it out for you
52:00
and say well if you put this amount of
52:01
money in that'll take you up to your
52:03
three years so now you qualify so do
52:05
have a talk to them about it and they
52:07
can check it for you as well
52:10
so three years starting point out to
52:12
five
52:13
a grand per year so if you're single
52:16
that's an extra five grand
52:19
just because you've been in keemsaver
52:21
and first home grant which is pretty
52:24
cool
52:25
um
52:28
uh
52:30
yeah yeah i'll come to that question um
52:32
and then if it's a new home you double
52:34
it two thousand per year for five years
52:37
so that could be a maximum of ten
52:38
thousand dollars um again this is a
52:40
first home grant so there are some
52:42
additional rules around uh regional
52:45
house price caps and again i'm going to
52:46
show you give you the link so you can
52:48
have a faucet through that as well
52:50
but bear in mind it's only the first
52:52
home draft if you don't qualify for that
52:54
you can still pull your kiwisaver out as
52:57
to normal
52:58
um
52:59
yes it does so the question was does the
53:01
first time grant count towards deposit
53:03
um yeah you can um that that can be
53:06
added into the pot but bear in mind the
53:08
bank is still looking for you to have
53:09
your own contribution in there as well
53:12
and like i say last i heard of that is
53:14
usually half
53:16
of the total contribution
53:19
um but kiwisaver forms part of that from
53:21
your own sort of herd money um
53:24
what have we got here that new home must
53:26
have been built within 12 months is that
53:27
correct
53:28
uh
53:30
yeah
53:31
don't know but the links i'll give to
53:33
you um sarah have a faucet through
53:36
because that'll have all the negative
53:37
tricky stuff on that
53:38
um if i go through to
53:42
so if we took some repayment holidays
53:43
due to uncertainty covered that could
53:45
ruin our chances uh not necessarily like
53:47
i say have a talk to them because they
53:49
can see how many months you've
53:50
contributed adding up to those 36 months
53:53
and if you've missed say three um i've
53:56
i'm not i'm sure
53:58
uh because i ran some uh seminars out in
54:00
marketing for kiwibuild a wee while ago
54:03
uh people were going in and talking to
54:05
them and they said oh look they told us
54:06
to put in you know two months worth of
54:08
contributions and that may met
54:10
the
54:11
tick box so to speak
54:13
um so i think first and foremost find
54:15
out what you've got
54:17
if you're short
54:18
and ask the question is there any way
54:20
that i can make that up so that i am
54:22
eligible for the first time grant
54:25
um
54:27
uh great question fraser you are
54:29
completely correct yes if you're a
54:31
couple then it's 10 that's 10k in total
54:34
on an existing home for potentially 20
54:38
on a new bill
54:39
so it adds up pretty quick
54:41
um
54:42
doesn't need to be three consecutive
54:44
years uh no i think it's an accumulated
54:46
total of three years uh contributions
54:49
that's that's the key we're looking for
54:51
why is it spreading five years is that
54:53
some criteria for living
54:55
spread in five years
54:57
um
54:59
sorry jen maybe clarify that question i
55:01
don't quite understand the question
55:03
my understanding is that the house price
55:05
gets very low i'm not giving up the
55:06
housing price any comments in this you
55:08
know kurtz used my full name on that one
55:11
um yeah they have recently reviewed the
55:13
house price taps
55:16
but
55:17
the um
55:19
oh thanks jen so jen's answered um
55:21
sarah's question
55:23
uh triple c is a
55:25
code of compliance so effectively that's
55:27
what the council gives you when the
55:28
house has met all the boxes and it's
55:30
approved and off you go
55:32
um no your final thanksgiving you've
55:35
covered that one um
55:37
jamie is a mechanism to take money out
55:39
if it is not your first time uh you do
55:42
have what they call a second chance um
55:44
ability with kiwisaver so um
55:48
you are allowed to to apply for that so
55:50
to speak so if you've gone through
55:52
uh common examples of marital split
55:55
um
55:56
uh then yes you do have the opportunity
55:58
to access your keys over again to buy
56:00
your second chance home so to speak um
56:04
so here is the link
56:10
so that's kind of order and the tool
56:12
you've got here is the first home
56:14
uh decision tool um so it talks about
56:18
the five percent loan as well as the
56:19
first home loan grant um
56:23
first home grants no not my home
56:25
and then
56:27
it breaks down both of those options uh
56:30
individually so hopefully
56:32
uh oh so the recorded session will be
56:35
with us probably with your good selves
56:38
in the next couple of weeks it just
56:39
needs to be uploaded by t
56:42
edited and then obviously photoshop to
56:44
make me look a little bit nicer on
56:46
camera
56:47
uh kidding but you know we'll be up in a
56:49
couple of weeks um mark if you're
56:51
wondering if it's not there in a couple
56:52
weeks time just email benefits at
56:54
nzdf.mill.nz
56:57
and um
56:58
let's have a chat to them all right
57:00
we're getting there um and then the last
57:02
thing you've got oh cool that's good can
57:04
you get a mortgage if you're buying land
57:06
and planning to build uh you certainly
57:08
can
57:09
yes you can a little bit more out of the
57:11
box but you can um
57:14
we'll go into that a little bit later if
57:15
you need to so one all good so the last
57:18
one we've got here is a kiwisaver first
57:20
home withdrawal
57:21
now
57:22
the first two if you don't meet that
57:25
criteria it does not stop you from being
57:27
able to access your kiwisaver okay
57:30
so kiwisaver you've got the minimum of
57:32
three years
57:34
but once you've hit that mark
57:36
you'll notice it's a membership period
57:38
it's not contribution it's just
57:40
membership so that's that's key
57:42
difference
57:43
uh you can withdraw
57:45
your whole balance less a thousand bucks
57:47
so you have to keep a thousand bucks in
57:48
there
57:49
but otherwise you can pull out the
57:51
government contribution can pull out
57:53
your contribution
57:55
and you can also pull out your
57:56
employer's contribution
57:58
which is pretty awesome and you know
58:00
depending on how long you've been there
58:01
it's probably been building up over some
58:02
time
58:03
um so that means you just take a
58:05
thousand dollars off that balance of the
58:07
rest you can access for the first time
58:10
and
58:11
you've been contributing the minimum
58:12
which you obviously have because nzdf
58:15
matches that
58:17
and you must intend to live and they do
58:19
check
58:20
if you are in the property um
58:22
so jen clarification question first time
58:24
grant 5 000 is given out by a thousand
58:27
year ie square five years oh sorry no so
58:30
what they do is recognize okay so if
58:32
you've been contributing for three
58:33
that's great so you you know you're
58:35
going to get three grand but if you've
58:37
then been contributing for i don't know
58:39
10 years total
58:41
they'll go three four five cool you're
58:43
gonna get the maximum of five thousand
58:45
dollars um and you get that as one one
58:48
some not spread out at all but they just
58:50
look at your
58:51
contribution period
58:53
great um
58:55
yeah so key thing about this is yes they
58:57
do want you to live in the property
59:00
so
59:01
let's have a test
59:04
uh max is 5k for an existing home per
59:07
person or 13 per applicant so if you're
59:10
a couple it could be 10k but if you buy
59:13
a new build it could be 20k
59:15
um
59:17
wow lots of questions um so bear in mind
59:20
if you've got the time after this we
59:22
will cover lots all these questions and
59:24
more if there are more because i know
59:26
this is such an important topic and
59:29
there's a lot to this topic as well
59:31
so let's test our knowledge on deposit
59:34
quickly so you've got mateo kiwi's over
59:36
26 grand first time grant five grand
59:39
marie kim's over 26 grand
59:42
first time grant five grand so they're
59:43
eligible so how much do they have for a
59:45
deposit
59:54
oh kurtz hit the mark first 60k
60:00
oh jamie second but just slightly
60:03
slightly out um
60:05
60k so the only thing that uh may have
60:08
put you out there jamie is the one grand
60:10
piece that you have to live and leave in
60:11
your cabin savers
60:13
so yeah 60 grand so it adds up pretty
60:16
quickly
60:17
um so yeah there's that one um now this
60:20
is just a quick capture because i know
60:22
we're
60:22
in our first hour already
60:25
of what we call the housing continuum
60:28
so what you've got in the two key
60:30
sectors is provided by community housing
60:32
providers
60:34
and available in the market so this just
60:37
shows you how how i guess kiwibuild fits
60:40
in in the private market and then also
60:43
some other options that haven't while
60:45
that are out there but i last i heard
60:48
the government was looking at
60:50
a um
60:51
a shared ownership
60:53
type arrangement but making it a lot
60:55
bigger so just keep your air out for
60:56
that
60:58
but yeah rent alone there are community
61:00
or chps as we call them chips
61:03
there are chps out there that can do
61:05
rent alone
61:07
a shared ownership so that basically
61:09
means the bank lends some money you put
61:12
some money in
61:13
and the chip
61:15
community housing provider owns some of
61:16
that house as well
61:18
and leasehold as well
61:20
and then private market is such kiwi
61:23
builders in there now we talked about
61:25
price caps not being high enough
61:28
but also look at the fact that um
61:31
oh thanks mark frank you've answered
61:33
that one that's good we've also looked
61:34
at the if you look at kiwibuild
61:36
effectively price camp the housing
61:38
market in auckland so
61:40
you know if you want a new build home
61:42
that's meeting all the
61:44
rigs around
61:45
how
61:48
warm cozy and dry type thing
61:51
you can buy a home in auckland what
61:54
seven hundred thousand new build i think
61:55
is the price gap off top my head um
61:59
and that and that's it you're not you're
62:00
not paying a million bucks which is the
62:02
average house price in auckland and even
62:04
then you could possibly get an
62:06
uninsulated uh cold damp home so kingdom
62:10
build you know whilst you've got some
62:13
price caps to work with
62:15
also gives you the opportunity to buy in
62:17
auckland at much less price than say the
62:20
average house prices as well just
62:22
another way to think about it
62:23
and then obviously private market so
62:25
private home sales so that's the
62:27
continuum so to speak
62:31
the other way is to buy a home
62:33
so obviously you need some hurt money in
62:34
there uh you could use equity from
62:37
another home this is where the bank of
62:38
mum and dad come into it
62:40
so this is um where
62:43
say as parents you might have paid off
62:45
your home or got lots of equities in
62:47
there now lots of equity in the
62:49
industries that's used
62:51
and being able to take some of that and
62:53
use it as security for
62:55
your kid's home so that's one option and
62:58
we can talk about that
62:59
after this
63:01
uh or pull resources with others and
63:04
you know again it's quite a tricky
63:06
situation to be in because if it's you
63:09
and a couple of mates or
63:12
a couple and a couple of other couples
63:15
you've got to have something really
63:17
really tight and ironed out in form of
63:20
agreement because
63:21
yes you've all got a home to live in
63:24
but what happens as
63:25
situations and relationships change
63:28
that's where a big consideration comes
63:30
into it
63:32
uh how do we know when the next key
63:33
we've got opportunities come out current
63:35
once and also
63:36
um yeah depending on where you want to
63:38
look um
63:39
like i've done quite a bit of
63:41
seminar work out in marketing
63:44
so lots and lots of development out of
63:45
marketing
63:46
i would suggest starting with um going
63:50
to kainga order website which is the
63:52
link i gave you
63:54
and then just have a look through there
63:55
where their developments are and then
63:56
just get on the mailing list
63:59
because they will notify you if and when
64:02
there's something new starting
64:04
as well as if there's a new ballot
64:06
available for particular kiwibuild
64:08
builds as well that would be the best
64:10
way to do it um right
64:13
how many slides we've got to go i just
64:15
want to see how many
64:17
we've got
64:19
oh we've got quite a few actually
64:22
all right um
64:24
what we might do is
64:27
go through this and then we'll have a
64:28
quick break
64:30
um
64:31
for five two minutes just a little bit
64:32
of a leg stretch and then we'll get back
64:34
into
64:35
the presentation that's cool with
64:37
everybody
64:38
um so there was a question around you
64:41
know what are some of the costs that
64:44
could come up
64:45
and what you've got on screen is by no
64:47
means all of them but should be quite a
64:49
lot of them
64:50
um so if we look at some of the things
64:53
that we might be hit with either once
64:57
we've found the property agreed to buy
64:59
it
65:01
then there's also some costs that you're
65:03
probably going to be up for before you
65:05
even know you're going to buy the thing
65:08
so
65:09
we'll just touch on those first so a
65:11
registered valuation
65:13
can be asked for by a bank
65:15
if they want to ensure that the property
65:17
you're buying is actually worth that
65:20
and typically they ask for that if
65:22
you're getting into a 10 deposit area uh
65:26
80 deposit maybe
65:28
uh maybe case by case but they can do
65:31
their own property evaluations which
65:32
doesn't cost you anything
65:35
um yeah cool no thanks thanks for that
65:37
that'll be good
65:38
um
65:40
now uh so that's a registered valuation
65:43
so it may
65:44
that may be a cost you're faced with
65:46
even before you know
65:47
you're going to get the property and an
65:49
example of that might be at auction and
65:51
you may have read the articles about it
65:53
where people have gone to auction
65:55
missed out and have found i've had to
65:57
pay i don't know well you can see their
66:00
top end 1200 bucks
66:02
plus um 450 bucks for a limb and
66:06
information been grounded um so they're
66:08
out of pocket 1500 bucks before they've
66:10
even bought anything
66:11
so there's a bit of frustration with
66:13
that um builders inspection report again
66:16
that's another cost you could be faced
66:17
with before you know you've got the
66:19
property
66:20
but it's such a vital thing to have done
66:23
because you don't want to buy a limit
66:25
or someone else's problems which become
66:27
your own and you have to fix it
66:29
so again anywhere from 300 to a thousand
66:31
bucks
66:32
uh p lab tests
66:34
that
66:35
people still do do it
66:37
um
66:38
but again
66:39
second-hand market no existing homes
66:41
these are the sort of costs you're faced
66:43
with versus the a new build um you won't
66:47
need to worry about a p-lab um
66:50
maybe
66:51
you probably still want to do that
66:52
because you want to make sure that all
66:54
the records on the council have been met
66:57
and
66:58
is
66:58
acceptable and your solicitor will be
67:01
confirming it with you
67:02
and then last but not least right at the
67:04
top you can see lawyer costs so a lawyer
67:07
is involved
67:09
and it's important to be involved
67:10
because i they're going to guide you
67:12
through that property process but b
67:15
they're also going to guide you through
67:16
the
67:17
mortgage documents and the loan
67:18
documents because you need to know what
67:20
you're signing for
67:22
so they're going to be an important part
67:24
of that whole journey
67:25
and they can range you know thousand
67:27
bucks clicking on the button pleasingly
67:29
a lot of banks contribute towards legal
67:31
fees in the form of uh cash back so if
67:34
you do a loan through a particular bank
67:36
they might give you two three four grand
67:38
cash which can help out with that
67:41
if you go through a broker they can also
67:44
put you in touch with a bank that gives
67:46
you cash back so don't feel as if you're
67:47
not going to get a cash back to deal
67:48
with a broker
67:50
um
67:51
oh cool great comic tristan um
67:56
yeah uh mark you might want to open it
67:57
up to everyone then because that's only
67:59
coming to me um at least that way i
68:01
don't have to
68:02
recount it as well um would they require
68:05
valuation builders inspection for
68:06
kiwibuild um
68:09
valuation
68:10
may be case by case haven't ever just
68:13
asked them um
68:15
chances are maybe not
68:18
but i remember back in the day when our
68:21
home got built
68:22
they still wanted the valuation even
68:24
though i worked for the bank as well
68:25
they still wanted the valuation to make
68:27
sure
68:28
it got built to um the value that we've
68:31
agreed to pay for it
68:33
if not more
68:34
so
68:35
yeah there may still want a valuation
68:37
and builders inspection again um have a
68:40
ever ask around um it is
68:43
well worthwhile
68:45
because we have seen
68:47
cases where even new builds uh
68:50
sorry the council has signed everything
68:54
uh and you only need to think back to
68:56
the leaking the water tightness issue
68:59
council approved everything so
69:01
technically it should be okay but you
69:03
know hundreds of homeowners if not
69:04
thousands of facebook leaking or weather
69:06
tightness issues
69:08
um so i i would say err on the side of
69:10
caution because it's a half million plus
69:13
investment that you're making and for
69:15
the sake of i know 500 bucks
69:18
just to be 100 i think that's a good
69:20
thing
69:21
um and that's mark's point as well in
69:22
all likelihood it's in your interest
69:24
have an inspection sign off and the
69:25
banks will also want this uh and then
69:27
just down the bottom here
69:29
you've also got some other costs that
69:31
come into play um such as moving costs
69:34
relocation
69:36
and it's things that i never thought of
69:37
when we bought our first home um
69:40
we got called out by almost five grand
69:42
we were thinking oh my god so we had to
69:44
take it out of the credit card and pay
69:45
for it because it was our lawyer's fee
69:47
moving fees
69:49
um and i think the rates build or
69:50
something right have to be squared up um
69:53
so had we known about that stuff and i
69:55
worked for a bank this is how bad it was
69:57
had we known about it we could have
69:59
saved up for that but as it was we'd do
70:01
it very quickly and urgently um and
70:04
mortgage insurance but these are the
70:06
things that are ongoing costs
70:08
um and great sharing tristan love that
70:10
yeah i'm just trying to get in cost
70:12
candy body corporate fees is not
70:13
uncommon for them to ask the first year
70:16
payments upfront
70:17
which yeah can be
70:20
oh thanks jen that's good as well are
70:22
you able to put some of your team's
70:24
overdraw towards these extra costs or is
70:26
there no scope to do this um
70:29
that's a good question
70:31
usually it's for your deposit but if
70:32
anyone has a different understanding of
70:34
that then um
70:35
feel free to share it that would be good
70:38
um cool all right
70:41
um thanks jim that's great input as well
70:44
about the body core which is brilliant
70:46
all right um now let's take a five
70:49
minute sort of breather
70:51
and um
70:54
i will answer your question as soon as
70:55
we get back and bear in mind like i said
70:58
lots lots of questions so this is great
71:01
but yeah i might flick through some
71:03
slides a little bit quicker uh ones that
71:05
perhaps are good to know but um we won't
71:08
delve into too much just so we've got
71:11
enough time at the end for these
71:13
questions and to address all these
71:14
questions as well it's really good um so
71:16
if i say we're quarter past if we come
71:18
back at 11 20 i'm just going to switch
71:20
my camera off and go mute so i can have
71:23
a bathroom break and
71:25
have something quickly to eat but i
71:26
encourage you to do the same and then at
71:28
11 20 we'll kick it off again
71:31
and
71:32
get these questions answered and
71:34
get through this material as well
71:37
it's been good so far hopefully
71:38
hopefully you agree so here we go i'll
71:40
just
71:40
disappear for a couple minutes
72:48
you
76:01
so uh
76:02
hello
76:04
i feel like i was rushing around the
76:05
house to have something to eat and then
76:08
in the bathroom break and replenish my
76:10
water
76:11
um
76:15
so welcome back we're almost uh i did
76:17
say 11 20 so i'll give it a minute just
76:19
in case everyone's holding the tree to
76:20
that particular
76:22
time um
76:24
yeah due to uh just to your point jen
76:26
leasehold's an interesting one
76:28
um
76:29
it may well be a lease of a dollar they
76:31
call it like a peppercorn rent um
76:34
and it may well be for specific
76:36
buildings but at least these ones you
76:38
have to be careful of because you don't
76:40
own the land that buildings on
76:42
um which basically means that there's
76:45
somebody else involved with it and they
76:47
can you would have seen stories in the
76:49
herald over the past
76:50
months years uh that when it comes to
76:53
review time and the property prices have
76:55
gone astronomically high as they did
76:57
then the lease
76:58
payments for that land because it's
76:59
become more valuable
77:01
i've jumped and rocketed up in some
77:03
situations people have just left left
77:05
the home completely because
77:07
it's it's not worth anything to stay
77:10
because they can't afford it
77:12
and b trying to find somebody to buy it
77:14
at that current lease payment as well
77:16
um so it seems horribly unfair
77:18
um thanks to
77:20
um
77:21
tristan about sharing about own savings
77:23
pay for these costs yes i thought it
77:26
might have been that um so yeah keywords
77:28
over and stuff deposit solely
77:31
and then your own savings to meet those
77:33
costs but bear in mind
77:35
um
77:37
you know there's this
77:38
also depending on the settlement date
77:40
that you agree on you can settle it
77:42
later you might be able to save some
77:43
more money up in between
77:46
um
77:48
yeah
77:49
yeah to your point there you're
77:51
maybe google peppercorn rent that's
77:54
where i've come across where these
77:55
payments are very cheap and
77:59
common situations where it's a
78:01
charitable
78:02
a charity that's in a building they pay
78:05
what they call a peppercorn rent so it
78:06
might be ten dollars a year to be in
78:08
that building because they're a
78:09
charitable organization
78:11
but it signifies a very low lease
78:14
payment
78:15
um
78:16
all right so lots of questions and
78:19
hopefully we're going to get through
78:20
this
78:21
so financial headwinds i won't sort of
78:22
gloss over this but we'll we won't spend
78:24
too long on it um but you're in there
78:28
now and i think to our earlier comments
78:31
around
78:33
feeling anxious or tied down once we get
78:36
into a mortgage
78:39
we can alleviate that feeling by
78:42
knowing that we're you know protected in
78:45
some some form that's the worst happened
78:48
um
78:49
so
78:50
if we've got financial headwinds what
78:51
are some of the things we're going to
78:52
look at to protect ourselves in our
78:55
whanau what do we reckon
79:06
what would look
79:07
yeah yeah insurance love it love that
79:09
commitment to um the answer to the
79:10
agenda insurance of the question um yeah
79:12
insurance is a form of doing it so
79:14
you're asking somebody else to come
79:17
along and
79:18
pick up the risk of something going
79:20
wrong so you've um
79:22
yeah jamie mortgage protection income
79:24
protection so what you can see on your
79:25
screen at the moment
79:27
um is in terms of protecting it you're
79:30
definitely going to have to have the
79:31
house insured
79:32
because the bank
79:34
and the niceness wants to protect the
79:37
security they've got so you have to have
79:39
house insurance um and again you've got
79:41
two types and you've got a special
79:43
offering through nzdf to get that house
79:45
insurance in place which is great
79:48
contents that again is a
79:51
um it's up to you yes or no if you want
79:53
to take it the bank won't enforce
79:55
content
79:56
uh but what's important is is you know
79:58
if something happened can i afford to
80:00
replace my goods
80:02
um or do i want that risk sort of put on
80:04
to somebody else
80:06
um excuse me so contents can be quite an
80:08
important feature as well
80:10
and then you've got the other two well
80:12
other one mortgage protection insurance
80:14
and this is what typically a bank will
80:17
talk to you about because they usually
80:19
have their own mortgage protection
80:20
insurances
80:21
specific to their lending
80:24
or what you might actually find is if
80:26
you deal through a financial advisor
80:29
they can come up with a an insurance
80:31
package that includes uh some form of
80:34
loan insurance some sort of income
80:36
protection some sort of life trauma or
80:39
total disablement in one comprehensive
80:43
package that's a lot better than say a
80:45
specific mortgage protection insurance
80:48
um
80:49
i sort of having been in the insurance
80:52
world if you deal with bank you just
80:54
need to know that the mortgage protected
80:56
insurance
80:57
looks after the loan with that bank
81:00
typically and it doesn't look after you
81:02
or your phone over it's looking after
81:04
the loan and then only for a very
81:06
short period of time
81:08
so i'd definitely seek advice elsewhere
81:12
to see what you can put in place uh and
81:14
income protection because at the end of
81:16
the day it's such a vital component
81:18
because
81:19
your ability to work is how you got the
81:22
home in the first place and if there's
81:24
anything that's going to jeopardize you
81:25
being able to work in the future due to
81:27
illness
81:28
then you want to have a look at
81:30
protecting that
81:32
so you've got acc if there's an accident
81:34
but any illness orientated
81:37
mishap
81:39
then income protection is where that
81:41
kicks in as well um and it it factors
81:44
into other costs the bank doesn't use
81:47
that as an assessment
81:49
um but you have to do that as a family
81:52
unit or as a banner because
81:54
it is going to be if it's important to
81:56
you and anybody else or just you by
81:58
yourself if it's important you to have
82:01
it it's another cost you're going to
82:02
have to pay on top of the mortgage
82:04
penalty just want to be sure you've got
82:05
that
82:06
in check
82:08
the on the right here you've got other
82:10
costs to consider which
82:12
is the joy of owning a property i guess
82:14
uh council rates um so land rates
82:18
and you know in auckland they can get up
82:20
two and a half three thousand
82:23
more than that so you're talking
82:25
like 50 60 bucks a fortnight um
82:29
60 bucks a week almost if it's three
82:31
grand plus which is quite a chunk of
82:33
money
82:34
to pay to a council for the services
82:37
that you enjoy
82:38
um so that's another consideration
82:41
to
82:42
bear in mind and like i say house
82:44
insurance is a
82:46
must-have you have to have it um so you
82:48
have to factor that one and then last
82:49
but not least
82:51
yes rates are always increasing uh house
82:53
maintenance
82:54
and that's probably something that not
82:56
many people
82:58
factor that in
83:00
yes yeah you should allow
83:03
whether or not you set up a separate
83:04
account for house maintenance but you
83:06
should allow for having to
83:08
make repairs or general maintenance of
83:11
wear and tear on your own because at the
83:13
end of the day it's an investment
83:14
because
83:16
you know if it's a building block to
83:18
another home you want to have it in the
83:20
best possible shape so you get the
83:22
maximum dollar value out of it to be
83:24
able to go on to that next step of the
83:26
property letter
83:27
or
83:28
just be able to live in a house that is
83:31
that looks looks pretty
83:33
sharp on the street so to speak
83:35
um
83:36
so yeah so those are sort of the other
83:37
ongoing costs and there's probably more
83:39
but those are your key ones
83:42
so what we're looking at here is ways to
83:45
buy a home
83:47
so make an offer so that's traditionally
83:49
through
83:50
so you get the old property press or
83:52
trade me or whatever it is and you see
83:54
the property like you look at it do your
83:56
due diligence with the reports and
83:58
things
83:59
love it
84:00
i'm gonna make it offer so typically on
84:02
a sale and purchase agreement
84:04
um you've got an auction
84:06
now
84:07
when the difference between the two
84:09
that's why i put them both up when you
84:11
make an offer you have a degree of
84:13
control over you know settlement dates
84:17
making it subject to finance making it
84:19
subject to a builder's report so you
84:22
know or you almost know you can put
84:24
yourself in a position to know that
84:26
you're gonna get the property
84:28
and then if they accept your offer then
84:31
you can get the other stuff done so that
84:32
you know that when you're going to pay
84:34
for a builder's report for evaluation
84:36
or a limb
84:38
or a p-test whatever it is
84:40
you know that if they all come back
84:42
ticked you've got the property
84:44
but if you look at an auction
84:46
you have to go and prepare to settle it
84:49
100
84:50
so if you're successful it's yours there
84:52
ain't no getting out of it so you can't
84:55
then turn around and go oh actually i
84:57
need to do a builder's report
84:58
because you've already settled
85:01
like you've already been successful at
85:03
auction so you are the buyer
85:05
and so that's the key difference between
85:06
making an offer and going into auction
85:09
and hence why there's a lot of
85:11
ill feeling out there about options
85:13
because
85:14
um
85:15
lots and lots of first home buyers have
85:16
been missing out and they've been
85:18
stumping up hundreds if not thousands of
85:20
dollars to even get to the point where
85:22
they think yep i'm going to buy that
85:25
and missing out at auction
85:27
um and then last but not least is tender
85:30
or priced by negotiation and tender is
85:33
the same outcome as an auction and again
85:35
you should be talking to your
85:37
your solicitor
85:38
your broker if you're dealing with
85:40
broker even a bank um mortgage lender uh
85:43
as well as the real estate agent as well
85:46
uh keep in mind real estate agent asks
85:48
for the seller
85:49
not to say they're going to juke you but
85:51
they act for the seller so
85:53
you know if they're telling you
85:55
things that might influence your sale
85:57
price or anything just remember they act
86:00
for the seller
86:01
that's the key thing i learned that
86:03
lesson
86:04
uh my wife and i learned that that's
86:06
dealing with real estate agents over a
86:08
lifetime so it's one thing i do want to
86:09
impart but a tender
86:12
a little bit different to an auction but
86:13
it has the same full and final
86:15
settlement at the end
86:17
so tenders basically put up your best
86:20
offer
86:21
and
86:22
the real estate agent and the vendor i.e
86:25
the seller of the property will have a
86:27
look through them and pick the one that
86:28
best suits
86:30
i.e the highest price
86:32
again real estate agents may
86:34
try and sway the price by saying
86:38
oh look no that won't be high enough yet
86:40
to be higher so
86:42
do uh do your due diligence
86:45
do your research
86:46
find the price you're comfortable with
86:48
and make that offer if you're in that
86:49
position
86:51
don't be swayed by saying
86:53
by someone saying it's too low
86:55
stick to what you want to pay for it and
86:58
if you miss out you miss out just be
87:00
done with it there will always be
87:01
another house somewhere along the line
87:03
um so that's another sort of thing to
87:06
try and remove the emotion out of it
87:08
um
87:10
yeah cool great thanks for answering
87:12
that one mark that's good uh and we had
87:14
here what are some key things you should
87:16
ask qg builders finance anything else
87:19
um who are we asking kim would be the
87:22
key thing uh what what
87:24
uh key things should we ask like
87:27
who are we asking like the bank
87:29
uh the broker or the vendor or the real
87:32
estate agent
87:34
um so
87:36
just clarify that one can do it
87:37
brilliant uh legal binding contract
87:39
between vendor being judy because she's
87:41
selling the house and the purchaser
87:43
being ari
87:45
unfortunately it doesn't quite work too
87:46
well because we would normally be
87:48
circulating the same purchase agreement
87:49
at this point um but within the sale and
87:52
purchase agreement there are a whole
87:54
bunch of
87:55
almost blank spaces
87:58
uh offer condition cool all right thanks
87:59
jen
88:00
you're on to it gender awesome um
88:03
yeah there's a whole lot of blank spaces
88:05
and it's to kim's question and jen's
88:08
point in those spaces so to speak you've
88:10
got the price you can offer for the
88:12
house um so that typically goes
88:16
backwards and falls and adjusted because
88:18
you know you and the person you're
88:21
trying to buy it off the vendor you're
88:23
negotiating a final price and you know
88:25
you might have a price they might have a
88:27
price and somewhere in the middle is
88:28
what you agree on
88:30
so you've got that the next component
88:33
down is also a deposit
88:35
so
88:37
cool thanks jen um there's a deposit and
88:40
don't be misled by an estate agent
88:42
saying it has to be 10
88:44
it doesn't have to be 10 it doesn't have
88:46
to be any specific amount
88:49
it's what you negotiate as a deposit so
88:52
perhaps for a new bill yes you might
88:55
have to pay two and a half five ten
88:57
percent whatever it is
88:58
but again you can negotiate that so if
89:01
you want to pay
89:03
even for new builds if you want to pay a
89:05
lower deposit
89:06
then
89:07
ask
89:08
or put it on the contract
89:10
because if a state agent if you're
89:12
buying for six hundred thousand and they
89:14
say uh 10 60 000
89:17
if it all goes through you have to pay
89:19
that 60 000
89:20
within
89:22
five working days usually of the
89:23
contract becoming unconditional so the
89:26
moment you have to pay that that's 60
89:28
000 coming out of you going off to the
89:31
trust account or the solicitor the real
89:32
estate agent gets paid
89:34
but you're not
89:36
you're not earning anything from it so
89:37
if your settlement's a couple of months
89:38
away then you've lost out in that
89:41
opportunity so
89:42
again to me for me it was a personal
89:44
learning experience our first time we
89:46
didn't know that second one we
89:49
pulled down the deposit so that we knew
89:50
we had some money still at our disposal
89:54
so you can negotiate that
89:56
the other conditions you can put in my
89:57
contract
89:59
is
90:03
finance clause so
90:05
you know if you want to use that as a
90:07
sort of a i haven't quite got finance
90:09
ironed out so you can say subject to
90:11
finance
90:12
um subject to builders report subject to
90:15
limb report you can make it subject to
90:17
all three of those but what i'd
90:19
recommend you do is
90:21
engage with a solicitor one that you
90:24
trust of course
90:25
um and talk to them about it what would
90:27
they use typically
90:29
and what should they use to protect you
90:32
the most because it's your first time
90:34
purchase the last thing you want is
90:35
experience any anxiety with getting
90:37
something wrong definitely employ a
90:39
professional to
90:40
to help you through that process
90:43
now on here
90:44
i have
90:46
i've picked out um westpac and anz only
90:50
because
90:51
that is where you get your um
90:55
uh nzdf
90:57
benefits package through
90:59
um but i'm just popping some links on
91:01
here just so you've all got let me just
91:03
let it work
91:06
why do that goes
91:08
c drive that's not how it should be
91:11
um
91:12
let me do that at the end that's not how
91:14
it should be it should be just a link to
91:16
whisper um or anz but um
91:19
so these are first home buyer guides and
91:22
you know westpac's 43 pages 1844 but
91:25
read through those as well because
91:26
you'll see some great information in
91:28
there yeah they sell themselves a little
91:30
bit but there's some cool
91:32
tips and tricks in there as well
91:34
um as well as being your bankers of
91:37
choice in terms of the nz to your
91:38
employee package
91:40
but i'll do what i'll do at the end is
91:43
find the amz one and pop the link up
91:44
just so you have that as well
91:47
um very good all right here we go let's
91:50
get back to our presentation so
91:52
um
91:53
before buying a home it's almost a
91:55
summary as such
91:56
what do i need to pay for my home so
91:58
what
91:59
what am i comfortable paying uh what
92:01
support can i get and what else do i
92:03
need to consider so
92:05
knowing what your lender is looking for
92:07
is key because that's really going to
92:09
set everything up to begin you want to
92:10
leave facebook forward so to speak
92:13
include all your additional house costs
92:16
in a budget now one other thing i did
92:18
forget to mention which i should mention
92:20
and it's changed a little bit since i
92:22
was doing it
92:24
they do
92:25
ask for a bit of a budget from you
92:28
so they want to know what your outgoings
92:30
are
92:31
and then they do also compare that to
92:34
your actual bank statements so they just
92:36
want to know that you are in touch or in
92:39
tune in control of your expenditure
92:42
so if you say you spend
92:45
on budget application 100 bucks a month
92:48
on takeaways but on here it's showing
92:50
multiple kfc burger kings and all sorts
92:52
of ads up to 500 bucks
92:54
they'll ask that question why is there a
92:56
discrepancy
92:58
and then they might take that up
93:01
and to the point i think there's an
93:03
earlier comment around
93:05
using one third
93:07
of your gross salary
93:09
banks typically work on what they call a
93:11
minimum monthly net surplus
93:13
and again working with a broker they
93:16
they know this stuff they can tell you
93:17
what it is
93:18
let me know if you meet it easily or
93:20
short whatever it might be
93:23
but minimum monthly net surplus means
93:25
that you get your salary less what you
93:27
have to pay out less tax
93:29
you end up with net amount you have some
93:31
expected costs that you have to make and
93:33
the loan payment
93:34
and
93:35
by the end of that process if you end up
93:37
with a minimum monthly net surplus of
93:39
two thousand dollars and their
93:41
requirement for a single person to save
93:43
twelve hundred dollars then that's a
93:45
tick then you meet the servicing all
93:47
right um
93:49
for for an individual it's different to
93:51
a couple and then it's also different to
93:53
a couple with kids or an individual with
93:55
kids they have their own way of working
93:57
this out so that's part of the servicing
93:59
criteria now a bank may not necessarily
94:02
share that you can ask them but a broker
94:04
can definitely let you know what it is
94:07
and different banks have different
94:09
criteria as well
94:11
um
94:12
so yeah so this is typically where we
94:14
conclude the first half and we are 20 to
94:18
12 and we're into the second one so here
94:19
we go with conditional approved so what
94:21
we're looking at now
94:23
uh are structures all right so there's
94:25
three key words that we need to be aware
94:27
of when we're dealing with a mortgage in
94:29
any loan for that respect is the
94:31
principle so how much we're actually
94:33
borrowing
94:35
the interest
94:36
which um can i ask how often is that
94:39
calculated
94:40
you know i know uh and last but not
94:42
least time so how long have we got this
94:44
loan over for so there's three king
94:46
terms
94:47
awesome jen thank you daily yes so
94:50
interest is calculated daily
94:52
so once you've got this mortgage once
94:53
we're in this house once you're starting
94:55
to pay this loan definitely get used to
94:57
paying it because it does take getting
94:58
the old gray matter around it but once
95:00
you're there
95:01
start figuring out okay now how can we
95:03
pay this off quicker because if it's
95:05
calculated daily any little bit of money
95:07
we put into it will have a beneficial
95:10
effect that's the key
95:11
so
95:12
matteo and marie's interest this is just
95:16
on an interest-only basis um 450 000
95:20
mortgage at three percent
95:22
quite a low mortgage uh can't be
95:24
auckland um daily interest rate is three
95:26
percent divided by 365 so days a year so
95:31
point zero zero eight two one nine
95:33
percent per day
95:35
times that by the four fifty thousand
95:38
so the moment you wake up
95:40
that's 37 thanks
95:43
so that's the daily interest at work
95:45
okay now the interest is calculated
95:47
daily and in charge usually fortnightly
95:50
or
95:52
one of the two
95:54
so if october is 31 days
95:56
that's 1147
95:58
per month just
96:00
an interest
96:01
never mind the principal having to be
96:03
repaid back as well
96:05
so that's how the um
96:07
the um
96:10
payments made up there's a little bit of
96:12
principle and a great big word of
96:13
interest right at the game and then
96:15
towards the end of a typical table based
96:17
loan
96:18
a little bit of interest but a great big
96:20
wide principle and we'll see some graphs
96:22
just sort of showing that um so
96:25
managing interest rates so once you get
96:27
uh i don't know your half million dollar
96:29
loan whatever it might be
96:31
you're
96:33
susceptible to interest rates going up
96:34
and down and you can protect against
96:38
your rate going up
96:40
by taking out what they call a fixed
96:41
rate
96:42
so you can see on screen here floating
96:44
fixed interest only now interest only
96:46
for first-time buyers
96:48
probably not something you want to look
96:51
at or recommended or bank will actually
96:53
encourage either
96:56
um
96:57
good question jen i'll tell you that one
96:59
in a second um so interest only tends to
97:01
be there as a bit of a
97:04
solution to free up a bit of cash flow
97:06
for you uh even property investors used
97:08
to make use of interest only in banks of
97:10
trying to pull them away from that now
97:13
but interest only basically means you're
97:15
going to borrow
97:16
half a million bucks
97:18
you're only going to pay the interest
97:19
you're not going to pay the principal
97:20
back
97:21
so you can see why banks are a little
97:23
bit nervous about that
97:25
but yeah floating means your rate of
97:27
return can go up and down with how the
97:29
economy is doing
97:31
and fixed just means instead of going up
97:33
and down you agree to lock in a rate
97:35
for a set amount of time
97:37
and then at the end of that time you get
97:38
to renegotiate to another rate if you
97:40
want to
97:42
so there's two great websites
97:44
at the bottom
97:48
dot co dot nz
97:51
uh interest dot co dot nz i personally
97:52
use that one all the time it's great uh
97:54
if you look under the borrowing tab i
97:56
won't go into it you'll have a
97:58
full rundown of all the bank rates with
98:00
such a great website
98:02
there's also
98:05
mortgage rates.cod.nz and they still
98:08
haven't fixed that spelling mistake
98:10
it's not has done mortgage
98:13
but it should be um
98:19
there you go um
98:21
sorry mortgage rates
98:28
so that's the correct spell
98:30
um
98:31
yeah so principle so the principle
98:33
remember how we talked about those three
98:35
key
98:36
components one being the last one being
98:38
time so the principle was worked out on
98:41
your time of your loan so if you've
98:42
taken it over 30 years
98:44
and you want to pay monthly
98:46
just do 30 times 12 which is the months
98:49
there's 360 payment periods take the
98:53
principal and divide it by the payment
98:54
periods and then that is your principal
98:57
repayment amount so there's no escaping
99:00
the principle because you have to pay
99:01
that back but what we can control is how
99:04
much interest we pay
99:05
on that principle
99:07
so hopefully that answers the question
99:08
again uh in new zealand fixed rates
99:11
generally lower but in other countries
99:12
is the opposite way versus floating i
99:14
mean um yeah so
99:16
if you look through the
99:18
interest rates in a typical economy
99:21
floating rates can go up and down and
99:24
floating rates are generally
99:26
decided or influenced i should say by
99:29
the reserve bank and what they call the
99:31
overnight cash rate ocr now used to be
99:34
90 day bill but it's ocr so if the bank
99:37
decides to drop the ocr
99:40
so that means it's cheaper to borrow
99:41
money in between the banks
99:44
then
99:44
typically the floating rate drops as
99:47
well all right if they put the ocr up
99:50
which they were going to before lockdown
99:52
4 happen but if they put it up then
99:54
floating rates typically go up
99:57
now fixed rates are a little bit
99:58
different
100:00
and it's a great question jamie so fixed
100:01
rates a
100:03
let's just skip to another page here so
100:05
we're ready to go
100:06
um are
100:09
the
100:10
i guess the um
100:11
the perception of how the economy might
100:14
go by money market so
100:16
if
100:17
can you do half fixed tough loading you
100:18
certainly can and this is what we're
100:20
getting to with these types of
100:21
structures
100:23
so
100:24
you might have a situation where
100:26
floating rate is higher than fixed rates
100:28
when fixed rates are lower or you might
100:31
actually have floating rate is lower and
100:33
fixed rates are higher so typically what
100:35
happens is if the economy is improving
100:38
things look like they are improving
100:40
longer term and people are getting
100:42
better about it long term you'll see
100:44
fixed rates starting to go up before the
100:46
floating rate does all right
100:48
and then on the on the flip side i'm
100:51
just trying to do interest
100:52
rate markets cycles 101 here uh on the
100:55
flip side of the market if the economy
100:58
is doing really really well and interest
101:00
rates are high
101:01
but it actually looks like it's going to
101:02
start slowing down you'll see fixed
101:04
rates coming down before the floating
101:06
rate so there can be times excuse me
101:09
where it moves
101:12
opposite to each other
101:13
and in terms of interest rates compared
101:15
to the rest of the world
101:17
it all depends on the risk of the
101:19
country so we are
101:21
double a rated so almost triple a rated
101:24
so we're pretty safe bet so that means
101:26
we can borrow money a lot cheaper so as
101:28
a country our interest rates are
101:30
reasonably low um versus uh i don't know
101:33
a brazil of the world where they have
101:34
high inflation
101:36
and high indebtedness and a lot of risk
101:38
their interest rates are high
101:40
um
101:44
yeah good point mark um our maximum loan
101:48
fixed rate loan term is five years
101:50
um so ahri so this is to your question
101:53
kim um i split my seven hundred thousand
101:55
dollar mortgage hundred thousand
101:57
variable floating
101:58
four hundred thousand one year fixed and
102:00
two hundred thousand fixed for two years
102:03
um
102:03
there and uh fever what happens when
102:06
floating interest rates go up um
102:08
obviously oops let's go back a page and
102:10
click by accident is
102:12
your fixed rate so
102:14
ahri's fixed 600 000 over 700 is
102:18
protected
102:19
so that ain't gonna change he knows
102:20
exactly what he's paying on those
102:23
but the hundred thousand
102:25
will go up
102:26
so the payment on this hundred thousand
102:28
might go up by however much it goes up
102:30
by but that is the only one that's
102:32
affected but it's protected the other
102:34
six hundred thousand so come to your
102:36
question yes you can do half and half or
102:39
if you want you could go
102:41
the third or third or third or you could
102:43
have floating uh and the remaining third
102:46
third third you can
102:48
mix it up as much as you like whatever
102:50
suits your personal situation
102:52
and typically i don't
102:55
yeah if you go through a broker
102:57
uh saying this that you don't get
102:58
charged to fix and float your lungs um
103:01
and typically i don't think the bank
103:03
charges you either but always negotiate
103:05
that one it's going to charge you to say
103:07
i'd go through a broken gear for free
103:11
so
103:12
we have a mortgage calculator which i
103:14
won't take you through because it's just
103:16
showing you the tool and just the time
103:18
saver might take you through it but
103:20
effectively the mortgage calculator
103:21
helps to show you what your payments
103:23
will work out to be
103:25
um and again if you work through um
103:29
uh
103:30
milestone direct they'll work out the
103:31
payments for you as well and then you
103:33
can happily tell them whatever structure
103:35
you're thinking of or
103:37
get their recommendations about a
103:38
structure um but bear in mind whoever
103:41
you talk to
103:42
if they're going to start telling you
103:43
that interest rate's going up or down
103:45
nobody knows not even not even reserve
103:48
bank governors know if it's going to go
103:50
up or down yes they might be able to put
103:51
them up or down but nobody knows what
103:53
the future holds so do what's right for
103:56
your household that's the key
103:58
um let's get off this page because it's
104:00
just been slowing my connection down um
104:03
gin new zealand singapore are the only
104:05
countries that house prices shooting up
104:07
after covert that probably says that the
104:08
economy affects the interest rates house
104:10
prices also increase in the uk u.s for
104:12
large amounts
104:13
um yeah
104:15
it's a global story house prices
104:18
and it's symptomatic of easy money i.e
104:22
lots and lots of money going into system
104:23
cash and very low interest rates
104:26
um that's what's happened so it's not
104:28
just new zealand story or aussie
104:30
singapore whatever it might be
104:33
definitely a global story
104:35
and
104:36
you've actually split it three ways just
104:38
make sure you state it expired a great
104:40
point miles because
104:42
what you're trying to if you're going to
104:44
split it you can see on the screen here
104:45
you've got two types of payment
104:49
table and producing but if you're going
104:52
to
104:52
try and protect your loan against
104:54
interest rates going up
104:56
and you want certainty the last thing
104:58
you want is having the whole balance
105:01
falling due
105:02
on the same time uh potentially when
105:05
interest rates are high nobody knows
105:07
when it will be so
105:08
a way to do it to miles's point is to
105:10
split them and have a one two or three
105:14
or two three or four or a three four
105:17
five year term
105:18
just so that you've got a dollop coming
105:20
due
105:21
along the
105:23
cycle so
105:24
not using my hands a lot but i'm gonna
105:26
draw this up on the board
105:28
but again you can talk to your financial
105:30
advisor about this talk to your bank
105:33
and say well what are my options here's
105:34
what's important to me
105:36
what can i do
105:37
and
105:38
it becomes less about trying to beat the
105:41
interest rate
105:42
and more about protecting you know your
105:44
own uh your payments
105:47
and your family and your whanau's um
105:51
commitment to having a good balanced
105:53
work life balance type thing glass and
105:54
you want to stress about interest rates
105:57
so yeah you can definitely um structure
105:59
it as you want to have it structured
106:02
um so
106:04
let's have a quick switch of water here
106:09
so this is
106:10
there's two types of
106:12
well there's three types now but two
106:14
real key types of mortgage or loan
106:16
structures
106:18
the first one is what we call a table
106:20
mortgage
106:21
and it's
106:22
one payment that you make if you're
106:23
fortnight for every month typically and
106:26
it's made up of uh principal
106:29
and interest and remember at the
106:31
beginning we're paying a little bit of
106:32
principal back
106:34
and i'm sorry a little bit of principles
106:36
like i can't even get my cursor on it
106:38
and a lot of interest and then towards
106:39
the end of the loan you're paying a
106:41
little bit of interest
106:43
but a lot of principal and that that's
106:45
what we call it table based loan it's
106:46
principal and interest in one payment
106:50
we also have something that's not that
106:51
commonplace anymore but it is still
106:53
around
106:54
a reducing mortgage and you can see here
106:57
that the
106:58
little
106:59
um
107:00
light blue is what we're paying back in
107:02
the dark blue if it's dark blue is
107:04
interest so if you compare the two a
107:07
reducing mortgage wow i'm paying less
107:09
interest because i've cut off that whole
107:12
bump
107:14
and the reason for that is because
107:16
interest is calculated daily
107:19
on a table based loan i.e its principal
107:22
and interest payment the interest is
107:24
charged back to the loan so you're
107:27
technically paying interest on interest
107:30
and you're you're going the opposite way
107:32
for compounding
107:34
returns now the bank is compounding it's
107:36
returned so hence why you have this
107:38
little
107:39
little bubble here
107:41
but uh reducing mortgage is what we call
107:43
a principal plus
107:45
interest
107:47
and the key difference for you to know
107:49
is that you have two payments to make
107:52
one is the principle to jen's question
107:55
how much would the principal payment be
107:58
so that is worked out on your loan term
108:01
times the payment period so if it's 4 19
108:04
26 monthly 12
108:07
then take the principal divided by that
108:09
and that's your first payment that's
108:11
your principal payment then you also
108:13
make what we call the interest payment
108:15
but the big difference is instead of it
108:17
being charged back to the loan like a
108:19
table loan
108:21
it gets charged to your check account so
108:23
you're not paying interest on interest
108:26
does that make sense
108:27
hopefully it does
108:30
so
108:31
you can see immediately that over the
108:33
same term you're going to save a massive
108:35
amount of interest doing this type of
108:37
payment
108:38
the only downside with it and this is
108:41
why the table mortgage is so
108:43
commonplace and popular is that right at
108:46
the beginning
108:47
what are you paying a maximum amount of
108:50
it begins with a high first one you tell
108:52
me
108:56
so your principal payments stay exactly
108:58
the same yeah
109:00
but what are you paying off what's that
109:02
other pain uh payment yes
109:04
awesome kelsey i'll call you out because
109:06
that's brilliant you were there first uh
109:08
interest so just pick kim at the pit
109:11
so the key is is that when your loan
109:13
balance is at the maximum possible
109:16
balance i.e just borrowed it your
109:18
interest is also at the maximum cost so
109:21
your payments that you're going to be
109:22
making on a reducing mortgage are a lot
109:25
higher at the beginning
109:27
and then as that balance drops
109:30
starts reducing towards the end
109:33
versus the table mortgage your payments
109:35
stay exactly the same all the way
109:36
through
109:37
unless interest rates change
109:40
so that's the key difference and that's
109:41
why you know reducing mortgages used to
109:43
be you know pretty cool uh but table
109:47
mortgages are nice and easy you know
109:48
exactly what you're gonna pay it's like
109:50
paint rent you know exactly what the
109:51
payment is you can protect against with
109:53
fixed rates um otherwise floating could
109:56
change
109:57
but generally it stays the same
110:00
now there's some other
110:01
types of loan structures
110:04
what they call an offset loan revolving
110:06
credit
110:08
reducing loan which is this guy here
110:10
table loan which is this guy here
110:13
uh and paying extra so you can actually
110:15
increase you know there's one bank i
110:16
think that increases the payments every
110:18
year sort of like a pay increase type
110:20
thing um but revolving credit is i don't
110:24
think i've got a graphic on that one no
110:26
um i also do actually yeah let's do
110:29
revolving credit first because the
110:31
picture links to our table loan so
110:33
remember our
110:35
table loan looks like that so that's how
110:38
we've
110:39
approved things
110:41
so long term 25 years the principal
110:44
interest
110:45
and the potential interest savings so
110:48
remember if i go back a page
110:51
if we make a table based loan one
110:53
payment you're paying that back all
110:55
things being equal you pay a lot of
110:57
interest right
110:58
so revolving credit means you've got
111:01
your loan
111:02
and the ability to put your salary and
111:04
wages into that loan
111:06
or whatever loan balance you want
111:09
which means the moment that money goes
111:11
in you can see it here
111:13
it drops the balance down and ideally
111:17
oh okay cool so someone just said they
111:19
used revolving credit uh and that could
111:22
do you still use it
111:23
or not and if you don't use it uh tell
111:25
me why and i'll share it are you still
111:27
using cool all right um so the key is
111:29
because interest is calculated daily the
111:32
two key things with this is that yes you
111:34
want center and wages going in so it
111:36
drops the balance
111:37
so if you drop the balance you pay less
111:39
interest
111:40
and then also you want your bills to be
111:43
paid at least every month
111:45
and you know the optimal solutions on a
111:48
credit card because you get a few extra
111:50
weeks to pay it um but
111:53
please repair that there it is
111:55
by putting the bills off to the end of
111:57
the month
111:58
having your salary wages come in twice
112:01
in that month you drop the balance
112:02
before it goes back up so you see this
112:05
sort of jagged
112:06
effect and then during the year there's
112:09
also you might have other you might have
112:11
a side hustle
112:12
i don't know
112:18
you know if your partner or some if you
112:20
go into private
112:22
sector
112:23
you might be a little bonus so any of
112:25
those sort of payments coming in
112:27
the moment it hits that bank balance or
112:29
that loan balance it starts saving
112:31
interest so you can see it's a little
112:33
bit of a jagged effect and then what you
112:35
want to do is um i'll definitely not put
112:37
this thing back
112:39
is then it'll it'll
112:40
less
112:42
make the interest cost less which means
112:44
it makes your payments worth more which
112:47
can shorten the term so that's revolving
112:49
credit now um to the person that said
112:52
they still use it which is good they put
112:54
it all on their credit cards and then
112:55
pay at the end of the month the key is
112:56
then you're not charged interest on the
112:58
credit card that's that's
113:00
um
113:02
side gigs not allowed so you heard that
113:04
from me
113:06
um but yeah so that's the concept
113:08
revolving credit so key things to
113:10
remember with this one is you have to be
113:13
very very uh disciplined right gen to
113:15
your point you have to be disciplined
113:17
because you've effectively got your loan
113:20
accessible for spending
113:23
and it can't psychologically it can make
113:25
people feel as if they're always living
113:26
in debt because you don't see a credit
113:28
balance you just see a loan balance
113:30
but it does work if you've got that
113:32
discipline to stick to it
113:34
and the reason being
113:37
it could be a flexi home loan jen could
113:39
be i don't know
113:41
it might be a bank specific name but
113:43
revolving credit if you ask if that's
113:45
what it is and they say yes then you
113:47
know that flexi loan is the revolving
113:50
credit one
113:52
the cons to it is that yes as i said you
113:55
can put some protections in place
113:57
um to protect yourself from overspending
114:00
um and especially
114:03
um
114:04
yeah uh
114:07
yeah good good point jamie so new
114:09
zealand home loans does focus on that
114:10
technique and they can show you the
114:11
grants and stuff uh in terms of tim your
114:14
question how many years does that cut
114:16
off yeah it's a tricky one uh there are
114:18
some calcs out there that can do it new
114:20
zealand home loans can work is that
114:22
something that um
114:24
milestone does as well mark we'll just
114:26
ask you that
114:32
so i was just tapping a response uh yes
114:35
they will they will provide advice on
114:36
that as well okay cool that's good yeah
114:38
so at least you've got a free avenue to
114:41
to sound out this particular option um
114:44
because it definitely does work but like
114:46
i say
114:47
quite a bit of discipline goes into it
114:49
and mark's just raised a great point uh
114:51
the risk of developing credit loans you
114:52
get to the end of the mortgage journal
114:53
sort of the whole mortgage you have to
114:55
pay because if we'd liken it to a
114:56
healing balloon you could just bounce
114:58
along the loan limit that you get
115:00
approved
115:00
um
115:03
um so the last line i'm just going to
115:05
show you here is what we call the
115:08
oh yeah yeah no worries kim um is the
115:11
offset mortgage now this is a relatively
115:14
new concept and only a couple of banks
115:17
do it um but basically
115:20
um
115:23
oh yeah yeah cool all right
115:25
we'll explore that one
115:27
but basically you've got a mortgage of
115:28
650 000
115:30
and then you might have savings in
115:31
another account of 15 000 has to be with
115:34
the bank of course
115:36
but what the an offset loan does it said
115:38
the bank says okay well
115:40
we won't give you interest on your 15
115:42
000
115:43
but we can take that balance off your
115:46
mortgage balance
115:48
so 650 less 15
115:50
drops it to 635
115:56
but really
115:58
botch this one up as well um so you only
116:00
pay interest on the 635 000. so in
116:04
effect the bank has allowed that 15 000
116:06
to come off your mortgage balance and
116:08
then the interest is calculated on that
116:09
reduced balance um so that's an offset
116:12
loan and that this can work for people
116:14
that don't want to do revolve and credit
116:16
and want to know you've still got
116:18
savings and operate your accounts just
116:19
like normal and it's a way of pulling
116:22
all your accounts that you have with
116:23
that bank and recognizing the balance
116:26
and using that to offset some interest
116:28
cost
116:29
so that could be a
116:32
an option as well but like i say only a
116:34
couple of banks use it
116:36
not all banks have that particular
116:38
facility
116:39
um okay uh can you explain a bit and
116:43
mulch pay i'm going to run through these
116:45
because we're almost at the end and then
116:46
i'm going to go through these questions
116:48
um
116:50
yeah it does it does occur it is good if
116:52
you've got a separate movements fund and
116:53
then also a common place nowadays people
116:56
can use their
116:58
like a floating line to hold their
116:59
emergency fund so saving interest and
117:01
knowing that it's always there as well
117:03
but the key thing is if you're not
117:05
understanding it
117:07
you are very as first-time buyers or
117:09
people wanting to borrow money for a
117:11
home whatever it is
117:12
you are very sought after by the banks
117:15
so you're a hot commodity trust me okay
117:18
so it means that you've got the ability
117:20
to negotiate and the way you get the
117:21
best ability to negotiate is to have
117:24
yourself in the best possible position
117:26
when you go to apply that's regardless
117:28
if you go through a broker or through a
117:30
bank correctly you want to show that
117:32
you're in control of things and you know
117:34
your position you know that you're a
117:36
good candidate which means that if the
117:38
bank says yes then you're also going to
117:40
say well i'm such a great candidate
117:42
what's the best deal you're going to
117:43
give me because i know i can go to bank
117:46
b or bank c and get the best thing as
117:48
well
117:50
um uh what thanks to this i think anc
117:55
does
117:56
does anyone know um
117:58
oh westback names that jen just said so
118:00
cool thanks jen you're awesome
118:03
we might have to put you on the payroll
118:04
for these things
118:07
um
118:08
but and good point too mark miles and
118:10
direct can um will know what banks deal
118:12
with that particular
118:14
product as well so in terms of knowing
118:17
where to go to for help uh if we ever
118:20
yeah
118:22
uh kurt not my rule but the apparently
118:24
no sidekicks are entered here it'd be
118:26
quite tricky really
118:28
um
118:29
but uh money talks is a free charitable
118:31
service that can help with budgetary
118:33
advice
118:36
special rates home loan financial
118:37
advisor partnerships through your
118:39
workplace which nzdf does offer which is
118:41
good
118:43
independent financial advisors get to
118:44
the fma for more information which is a
118:46
bit tricky um if you want to look at the
118:49
marketplace for brokers uh financial
118:52
advice new zealand and it'll give you
118:54
find
118:55
an advisor and then you can specify
118:59
mortgage speciality in your region so
119:02
financial advice news i'll type that in
119:04
a second
119:05
um have a chat to your bank as well uh
119:07
because
119:08
you know you may remember last year
119:09
there was all this talk about repayment
119:11
holidays and all the banks came on board
119:13
and said look
119:14
coverts have locked down this is a
119:16
pandemic we really need to help our
119:18
people out i.e or kiwi
119:21
let's come out with repayment holidays
119:23
you still pay interest but you're not
119:24
obligated to make a payment would
119:26
hopefully just carry you through that
119:27
period of uncertainty
119:29
so that was done as a whole so that was
119:31
good
119:32
um but if we are ever in that situation
119:34
just like the presentation about debt
119:37
we want to be proactive if we think
119:39
we're going to strike some problems
119:41
talk to your bank as soon as possible or
119:42
talk to your broker whoever is acting
119:44
for you um talk to them as soon as
119:47
possible because then they can start the
119:48
process to see that looking or looking
119:51
for solutions to get you through and
119:53
that would be the key
119:54
um
119:55
yeah it says a talk for a lawyer
119:56
definitely but i mean you know talk to
119:59
your lender first because it's
120:00
completely free
120:01
versus engaging a lawyer which may
120:04
change by the hour you can hear the
120:06
clock ticking by the minute in the
120:07
background um so after buying your first
120:09
home remember talk to your financial
120:11
buyers about a mortgage that's right for
120:12
you so get advice use the sort website
120:15
as well because obviously
120:17
there's no shortage of information
120:19
um the
120:20
first time buyer's guide from westback
120:22
that i've put on there definitely talks
120:24
about that sort of stuff
120:25
and i'm going to find the amz one as
120:27
questions come through
120:28
we'll mark this as quick talk
120:31
and
120:33
use as much information as you can
120:34
obviously we've talked about a lot today
120:36
very quickly and over time
120:40
but hopefully it's giving me a little
120:41
bit of a an insight into the process
120:44
made you feel a bit more comfortable
120:45
about it and also just really
120:47
acknowledging like i say you are a hot
120:49
commodity if you're going to look at
120:51
buying a home because it's such
120:53
a profitable scheme for banks and they
120:56
want to know that a you're a great
120:58
candidate and b
121:00
you keep that loan as long as possible
121:01
with them because they'll just charge
121:03
more interest so one
121:05
negotiate negotiate
121:07
that's all i can say
121:08
um
121:09
obviously we'll talk about shop around
121:11
um
121:13
uh
121:13
structuring yes i mean
121:16
we might cover that one we've got some
121:18
tools there a little bit of help but i
121:19
do actually like those first home buyers
121:21
guys if you want to read through
121:22
something
121:24
just bypass all the talk to your own z
121:26
person or whatever it is bypass all that
121:28
have a read through the guide get the
121:30
information out of there see what's
121:32
common so you know that that's something
121:34
to be expected um and then i'm i'm all
121:38
for engaging with a
121:40
broker as such because
121:42
you just want to know
121:44
am i getting the best deal if you go to
121:46
the interest of code at nz you'll know
121:48
some of the deals out there but you know
121:50
dealing through a brokerage milestone
121:52
whatever it might be
121:53
you might just get a little bit extra
121:55
which is very awesome um
121:58
cool all right mark do you want to just
122:00
do your quick bit and i'll find this amz
122:02
thing
122:03
and then we'll get through these
122:03
questions if you like
122:05
yeah look thank you very much for that
122:07
that was an excellent webinar we've had
122:08
to rush through a whole lot of stuff but
122:10
i'm great for the questions to come and
122:12
say thank you everyone for that
122:14
um there is material available on the
122:16
force financial hub gene in terms of
122:18
your experience with milestone direct
122:19
limited i i apologize for that and i'm
122:22
that's regrettable i've actually sent
122:24
them an email while we're doing the
122:25
webinar to find out what's going on
122:27
uh because we normally get you know
122:29
positive feedback about their services
122:32
but if they've stuffed up on this
122:33
occasion my apologies and i'm trying to
122:35
find out what actually occurred
122:37
because one of the things we wanted to
122:39
monitor very carefully is the service
122:42
and the quality of the service they
122:43
provide for our people
122:44
um pre-covered and post covered we do
122:48
actually run what we call housing expos
122:50
in the camps and bases around the
122:52
country and it's basically like a speed
122:54
dating service where we bring together
122:56
under one roof a whole variety of
122:58
providers to do with the housing uh
123:01
industry and housing construction the
123:03
banks and all that sort of thing
123:05
um
123:06
we normally do about three or four of
123:07
them a year um
123:10
obviously we have to wait until we find
123:12
out what's happening next week before we
123:13
can start resurrecting these but
123:15
um anyone who's interested to know when
123:17
we've got the next housing expos in your
123:18
particular location please email me at
123:20
benefits nzf dot mil dot nz
123:23
and what we can do is let you know when
123:25
we've got uh events scheduled um
123:29
and partners of course are most welcome
123:30
to come along those as well we did one
123:32
in burnham um a couple of months ago it
123:34
was a particularly cold wet day but it
123:36
was a really great successful event and
123:39
we had over 100 and something people
123:40
come through within the space of a few
123:42
hours and normally what we do is we we
123:44
run them into the evening as well so
123:46
that working partners can come along as
123:48
well so there's a variety of resources
123:50
available within defence to help you
123:51
with your first home purchase in
123:53
particular um one of the things we look
123:55
at is what are people doing with our
123:57
savings schemes
123:58
and on average about every month we're
124:00
getting about 25 people a month taking
124:03
money out of the schemes to buy their
124:04
first home
124:05
um and that includes on average about
124:07
six in the matter or two and at about
124:10
five to ten in auckland each month as
124:12
well
124:13
we recognize those a bit two
124:15
particularly challenging regions from a
124:17
house purchase perspective but um
124:20
if some people are able to do it it's
124:22
around getting all the moons aligned and
124:24
everything else so we try to help that
124:26
as much as possible
124:28
thanks dennis all right thanks mark
124:30
brilliant um
124:32
so i just popped through um
124:35
the link for the anz first home buyer's
124:37
guide i obviously clicked on it and
124:39
downloaded so you've got a
124:41
weird wacky web address there
124:44
so pop that on there and i've also
124:45
popped on there the survey just to get
124:47
your
124:48
thoughts and feelings around
124:50
the content of this particular webinar
124:53
um bear in mind it's normally a seminar
124:55
webinar um so um thanks so much because
124:59
it's the only reason why we ran over
125:00
because we had so many great questions
125:02
and we're still going to cover some of
125:03
those questions as well um now jen you
125:06
mentioned you lost some of the links on
125:09
the chat so what i might do there is i
125:12
will see mark the links on a word
125:15
document because i can save the chat and
125:17
find them all again because it builds a
125:19
few and i just want to make sure i
125:20
capture them all um
125:22
so if you email benefits at nzdf.mill.nz
125:27
and mark can send out that word document
125:29
it has we'll have all the links is that
125:30
call mark that could
125:32
hopefully um
125:34
yeah so
125:35
uh
125:36
oh cool thanks christian i'm glad it um
125:39
associated a lot of your questions which
125:40
is good we aim to do that um
125:44
oh cool jen so my friend afforded me the
125:46
whisper okay brilliant cool uh now what
125:48
oh there's a question to you mark about
125:52
something you're talking about are they
125:54
for uniform and city
125:56
i'm guessing this is the
125:58
home seminars you're on youtube by the
126:01
way
126:03
uh
126:04
yesterday everything we do is available
126:06
for all members of defence
126:08
regular force civilian territorial force
126:11
and partners and family members
126:13
sometimes people bring along their adult
126:15
children because they are interested to
126:16
know more about buying a first home and
126:18
things as well so we we welcome all
126:20
comers
126:21
cool
126:22
um kurt oh yeah oh actually it might be
126:25
um
126:26
the questionnaire is for the webinars
126:28
and this is a seminar so just have a
126:30
look through is there like a
126:32
i don't have to still call it financing
126:34
your first time but pathways first time
126:37
um if it's just the webinars leave that
126:39
with me i'll get it fixed and we'll send
126:41
that out tonight as well
126:44
now there were some questions earlier on
126:46
and jen
126:48
did a great job of summarizing them so
126:50
i'm just going to find that
126:52
but if you have to go you have to go
126:53
thank you so much for your time and
126:55
especially if you've been with me and
126:57
mark over the course of this week
126:59
for our webinars hopefully you've not
127:01
gotten sick of the voice um but thank
127:04
you so much for joining us and it's been
127:06
a real pleasure um if you have to go
127:09
dennis just just sorry to interrupt just
127:11
to plug for the woman
127:13
members of the audience today we are
127:14
running the women's program next friday
127:17
friday the 24th
127:19
so please register for that for those
127:20
who are interested uh email benefits at
127:22
nz dot mil nz and i'll send you the
127:25
registration details
127:27
um and um uh we really encourage this is
127:30
all about woman and investing so it's
127:32
just a two-hour work um
127:36
webinar around that and we encourage
127:38
people to enroll for that as well
127:40
brilliant
127:41
um yeah so if you have to go by all
127:42
means um have a great safe weekend uh
127:45
stick around because look i've got a bit
127:47
of time to stick around for questions
127:48
and mark or stick around as well so
127:50
please do keep them coming
127:52
so gen summary around you know just
127:54
covering up some stuff and almost saying
127:56
at the end they're more related to the
127:58
choice of property and this is just
128:00
personal observation um
128:02
when we bought our first home and
128:05
literally
128:06
i know i wanted even say the price
128:07
because it was just stupid in comparison
128:09
to what it is now
128:11
um but all we wanted to do was get on
128:12
the property ladder we bought in
128:14
manurewa um
128:16
south auckland
128:17
two-bedroom home
128:19
and at that stage
128:21
we didn't have because it was just two
128:22
of us and a flatmate my best mate but it
128:25
was all about getting on on the ladder
128:27
and knowing that we had a
128:29
solid foundation so to speak
128:31
then we had our first child and
128:33
obviously we could we kicked out our
128:35
flatmate it was a three bedroom actually
128:38
um checked him out and then
128:40
my daughter got his room
128:42
uh but you know we we then added to the
128:45
house and went from there so i think
128:48
from a personal perspective around
128:49
choosing the home
128:51
you will know if the home feels right
128:54
and that's quite psychological and soft
128:56
and fluffy
128:57
but your things you need to consider
128:59
maybe you know as a place to transport
129:02
what's the school zoning like
129:04
what's the area like and you know just
129:07
from what i've picked up along the way
129:09
um
129:10
go
129:11
past the house
129:12
at different times of the day
129:14
so that you you see it obviously you see
129:16
it with a state agent and whatever time
129:18
that is but go back at night
129:21
have a look around have a walk around
129:22
the neighborhood what do you think of it
129:24
get all the things sort of addressed
129:25
that you might
129:27
want to know about before you buy it
129:31
the problem yeah with with second how
129:34
second-hand home so to speak is
129:36
yes you could be buying someone else's
129:38
problem so yes the builder's report is a
129:40
great way it's not going to be the only
129:42
way
129:43
but it is a great way to figure out okay
129:45
what are the most
129:47
prominent issues are there any leaks is
129:50
there any water in dress
129:52
and you know is that
129:56
bathroom conversion signed off properly
129:59
and i didn't touch on this but the lim
130:01
report that's available through the
130:02
council is a very very important
130:04
document for these houses that are on
130:06
the secondary market so respect because
130:09
it will show and your lawyer will look
130:11
through this
130:13
if all the stuff that's been done to the
130:15
house
130:16
has been consented for properly because
130:19
the last thing you want is if you've
130:20
bought a house for a nice
130:22
full awesome pergola deck
130:25
that's
130:26
two metres off the ground and that's the
130:28
whole reason why i'm buying a house
130:29
because it's such a lovely entertaining
130:30
area the moment you buy it it becomes
130:33
your problem
130:34
um which means the council can come
130:35
along quite happily and go well that's
130:37
not consented you either pull that down
130:39
or you pay for the consenting process
130:41
and then
130:42
they can have the legal right to say
130:44
well that's not not correct you need to
130:46
fix it um so it's your problem
130:49
um so those are the sorts of things you
130:51
need to watch out for anything to add
130:52
mark you'll be well just my niece was
130:55
buying a house on the north shore
130:56
several years ago
130:58
and and bought a a house subject to a
131:00
limb report and they discovered that the
131:03
garage had actually been built on
131:04
council land was an and was illegal
131:07
and so that's a very good example where
131:09
you can actually come acroppa and find
131:11
yourself with a lot of expenses that you
131:12
actually hadn't anticipated you're going
131:14
to have um so a limb report is an
131:16
essential part uh and you know
131:18
compliance certificates and all that
131:20
sort of stuff yeah
131:21
yeah god thanks mate that's that's a
131:23
terrible story ever golly
131:25
um
131:26
uh just coming here thanks dennis mark i
131:29
have my own home but trying to plan
131:30
long-term
131:31
kids so this helps a lot especially
131:32
looking at doing keys over smarter for
131:34
them yeah
131:35
um and and also that's the thing with
131:37
kiwisaver providing don't change
131:38
anything for your kids
131:40
the longer you have them in there the
131:42
easier you meet that um that membership
131:44
duration rule
131:46
but who knows what they've changed it to
131:48
a question here in terms of a house
131:49
deposit if you have a lump sum save for
131:51
deposit what would you recommend having
131:53
more of a deposit i.e 20
131:55
or less of a deposit 85 and a better
131:58
house in theory
132:00
uh like compromise on the house in order
132:02
to put down more of a deposit or go for
132:03
a more expensive house compromising
132:05
deposit
132:06
yeah well let's just say i had a
132:09
commentator
132:10
uh that is a fund manager that came out
132:13
and said buy the most expensive house
132:15
you can always afford and i thought
132:17
that was incredibly stupid to come out
132:20
with that i think
132:21
you know as an example my first home it
132:24
was we just wanted to get into a home
132:27
that the area was okay
132:29
um
132:30
and you know we just wanted to be in a
132:32
home and be homeowners we weren't trust
132:34
about where it was and how many bedrooms
132:36
and whatever else it had
132:39
and your question about that is
132:41
very i think very personal there's no
132:43
right or wrong and i think it's a case
132:45
of
132:45
do i have more debt
132:47
to get into a home that
132:50
feels better to me and my family or
132:52
whanau whatever it might be
132:54
or do i have less debt paid off as
132:56
quickly as possible
132:58
um but
132:59
you know sacrifice some of the things
133:01
some of the nicer things that i might
133:02
associate with with having a nicer home
133:06
tough one really
133:08
the other the other thing about that
133:09
dennis is that
133:11
if you have less than a 20 deposit some
133:15
of the banks may actually charge your
133:17
premium mortgage rate because you're
133:19
deemed to be a higher risk
133:21
yeah um now anz for with which we have a
133:24
preferential banking arrangement won't
133:26
actually charge a penalty
133:28
interest rate but some of the banks will
133:29
so you just need to watch out for that
133:31
as well
133:33
and it's an important part uh point back
133:35
as well um to that because it it limits
133:39
your ability to negotiate as well
133:41
because the more you need the bank to
133:43
help you out to get you there
133:45
uh the more i know this sounds cynical
133:48
but the more they know
133:49
or right you haven't got much room to
133:51
negotiate on this so we will just apply
133:53
your standard rates or charge an extra
133:55
fee whatever it might be
133:58
so i think yeah i can't quite answer
134:01
that one
134:02
as uh
134:03
as a you know financial professional so
134:06
to speak i think it's very personal
134:08
uh the maths would say
134:10
put in as much as you can to reduce the
134:12
debt as much as possible to pay it off
134:15
as quickly as possible but the
134:18
psychological side of it might be you
134:20
know
134:21
i want to get into a better school
134:22
zoning because i want to have kids at
134:24
some point i know i'm not going to move
134:26
from this house it's got great potential
134:28
for the future
134:29
i'm happy spending a bit more on that
134:32
because i know it takes a few more of
134:34
those sort of psychological boxes
134:37
probably doesn't really answer your
134:38
question but hopefully a bit of a bit of
134:40
idea
134:41
the other the other thing dennis was i
134:43
was going to say about the love and
134:45
everything else i'm i'm interested
134:47
intrigued to find the number of people
134:48
are actually buying houses online
134:50
without viewing them because one of the
134:52
big tests about how safer houses is the
134:54
smell test
134:56
if you go into a place and it smells
134:58
damp and mildew and all that sort of
135:00
thing then you know there's some either
135:02
leaky building or there's some problems
135:04
with drainage or
135:06
leaking pipes or whatever else um and so
135:09
you're never going to pick that up of
135:11
course if you're buying a house online
135:12
without actually physically visiting the
135:14
place so that's something to watch out
135:16
for as well i know people do it but i i
135:18
and i'm intrigued when they buy a house
135:20
online while they actually
135:21
physically visiting the place um because
135:24
i think there's some real risks in doing
135:26
that yeah and it's always the hallmarks
135:29
of a of a buoyant property market when
135:31
people start
135:33
leaving out the protection measures like
135:35
builders reports or whatever it might be
135:38
and just jumping in head first going
135:39
yeah let's buy it because we're going to
135:41
miss out and it's always the hallmarks
135:43
and i've been through a few of these
135:45
boom times in new zealand now that
135:48
it always happens and i think
135:51
if you keep
135:52
just keep your mind your wits about you
135:54
so to speak and make sure you do it you
135:56
are buying the right one doing the sniff
135:58
test as well
135:59
um you will do the best in terms of
136:01
protecting yourself as much as possible
136:04
um purchases school zones appointed for
136:06
resale even if it doesn't fight yet this
136:07
time yeah exactly i mean it's it's uh
136:10
what do they say location location
136:12
location
136:14
jamie's asked they have a fixed term
136:16
loan but online the bank lets me change
136:18
the payments if i can do that do i
136:19
assume that it's for free um yeah
136:22
if they allow you to do it but there
136:24
should always be a disclaimer to say by
136:26
changing its payments you agree to pay
136:28
an extra fee
136:29
it should be clearly disclosed if it is
136:32
but yes some banks do allow
136:34
usually about five percent extra payment
136:37
on a fixed rate payment loan um and
136:39
that's cool because that means if you do
136:41
get a let's say a pay rise or an extra
136:43
bit of money and you've got an extra bit
136:44
of cash in the pocket each fortnight
136:47
just pop those payments up one or two
136:48
percent uh it'll make a great deal of
136:50
difference
136:51
um
136:53
jim uh we have a similar question more
136:55
debt or more equity yeah
136:58
hopefully kim that answers somewhat your
137:00
question it's
137:02
math says lester uh
137:04
brain might say more debt because we get
137:06
the very own type thing so
137:09
let the two battle it out
137:11
i think you do and you've highlighted
137:13
this dentist all the way through this
137:15
week
137:16
you always have to prepare for the
137:17
unexpected you know whether it's an
137:19
unexpected pregnancy or or a covert
137:22
event where one of the partners loses
137:23
their employment or has to take a cut
137:26
and pay and all that sort of thing
137:27
because uh although all there's a
137:29
long-term illness with one of the
137:31
partners because those things can happen
137:32
and they happen every day
137:34
um now the bank in a situation like that
137:36
the banks are happy to negotiate with
137:38
the person to
137:40
defer some of the mortgage payments
137:42
where the person is facing genuine
137:43
financial hardship but you still have to
137:46
pay
137:47
um it just means the term of the
137:48
mortgage may be extended longer or
137:50
something like that but you always need
137:52
to factor in um a bit of a contingency
137:54
for the unexpected and similarly when
137:56
you buy into the house and all of a
137:58
sudden you find that something you
137:59
actually haven't planned like a hot
138:01
water cylinder that has to be replaced
138:03
yeah immediately because the you weren't
138:06
told that the hot water cylinder was
138:08
actually on its last legs and and that's
138:10
two to three thousand dollars that you
138:12
may need to fork out very quickly and
138:14
things like that so that's why it always
138:16
pays to have a bit of a contingency
138:17
amount
138:18
yeah definitely definitely um jen
138:20
hopefully you've seen who asked the
138:22
question now but um jen was just
138:24
reaching out
138:25
to the people that asked the question
138:26
about you know do i pay more or pay less
138:30
debt or equity
138:31
um
138:33
uh just jen's just saying she feels
138:35
connected to the person asking a
138:36
question because she's got similar
138:37
thoughts uh in terms of house viewing
138:40
house checking any advice how we can
138:42
check regarding pests
138:44
and i'm guessing that's human pests as
138:46
well as ants
138:47
[Laughter]
138:50
she would piss could be a real factor
138:52
where there's tenants in the place who
138:53
don't want to go
138:54
yeah
138:55
there's been a couple of events in
138:56
wellington recently where they've been
138:58
forced sales that in other words the
139:00
banks is actually foreclosed on the
139:02
mortgage and they've been selling these
139:04
houses but they've made it clear that
139:05
you can't actually view the house
139:07
and one of the houses was actually on
139:09
there's a very prominent um i can't
139:11
remember he's a greek or an italian
139:14
property developer in wellington who's
139:16
who's
139:17
i'd say dodgy to say the least uh he's
139:19
been declared bankrupt and he actually
139:21
put his 85 year old mother in one of
139:24
these places um and she refused to budge
139:28
and they
139:30
they literally had to be evicted out of
139:31
the property but when you were buying
139:33
the place you couldn't actually visit
139:34
the place you could only look at it
139:35
online because she refused to allow
139:37
people and to to have a walk through
139:40
yeah come on thanks geez
139:42
bye then jen clarified it's cockroaches
139:44
so that's that's all good um i look
139:47
interesting question and yeah it can be
139:49
i mean the house we're currently and
139:50
there seems to be ants everywhere all
139:52
the time so um that's a real pain in the
139:55
back um i would say maybe bring up a
139:58
pest control person because they would
140:00
be the expert just say hey look for 50
140:02
bucks
140:03
can i bring you around to inspect and
140:06
just tell me what to look out for or
140:07
something like that maybe maybe try that
140:09
think outside the box on it try that
140:11
um
140:13
jamie to you
140:15
rp tests mandatory no
140:17
and there was a bit of a fraud about
140:18
p-tests
140:20
um
140:21
a year or two ago where people were
140:22
being evicted out of housing or kind of
140:24
water houses
140:26
because they failed
140:28
um p-tests
140:29
a little bit sort of hit and miss and
140:33
yeah i mean definitely if you do want to
140:34
know it isn't one definitely get one
140:37
done
140:38
um
140:39
the other thing you might want to look
140:40
out for and builders reports probably go
140:42
into this is the old asbestos question
140:45
especially for the older homes
140:49
although
140:50
asbestos is only an issue if you're
140:51
proposing to do something with it
140:53
because the reality is i mean my house
140:55
was built in 1925
140:59
and i'm in a whole row of 95 year old
141:02
houses they're as solid as when we have
141:04
an earthquake i had a photograph frame
141:06
fall over the last big one
141:08
and wellington lost 30 major buildings
141:11
in my house a photograph fell over
141:14
and so um they are solemn asbestos is
141:17
actually only a problem if you're
141:19
cutting it or digging it or drilling
141:21
through it or something else
141:23
because the reality is a lot of houses
141:24
are built in new zealand
141:26
in the 30s 40s and 50s did actually have
141:28
asbestos in them um and that's just the
141:31
reality of the situation ironically it's
141:33
the newer places which are at the risk
141:35
of falling down on an earthquake or
141:37
leaky buildings or whatever else yeah
141:40
they don't make them like they used to
141:42
yeah the only reason why i brought it up
141:44
was um we had to replace our roof
141:46
because it was just really old we knew
141:48
it when we bought the house
141:50
but when we had a couple of people come
141:51
around to quote
141:53
one person said oh
141:55
when was this built that might be um
141:58
asbestos um tiling yeah it's like ah no
142:02
yes but we'll get a tester and we'll and
142:04
thankfully it wasn't um but those are
142:07
the sorts of things you might i think a
142:08
builder's report will pick up on but if
142:11
you're buying an older home um and you
142:14
know if the roof needs replacing
142:16
it just as one example then um
142:19
find out if
142:20
it is asbestos because it can be an
142:22
extra i know
142:23
five grand ten grand whatever it is on
142:25
the cost
142:26
um and
142:29
oh curt thanks for sharing that um kurt
142:31
uh says anz i think amz does a financial
142:34
health check
142:36
and there was a lot of weight on how
142:38
easily you could get hold of money if
142:39
you had an unexpected cost without
142:41
defaulting the mortgage's bills and it
142:43
just reiterates the need for emergency
142:46
funds so thanks kurt that's awesome
142:48
yeah yeah i do have a sweet tooth thanks
142:50
jamie
142:51
do you love sugar
142:52
um
142:53
my neighbor bar one has just had a new
142:55
kitchen put in and there was a best
142:57
asbestos there she actually had to move
142:59
out of the house for three months while
143:00
they were doing it
143:02
but
143:02
the neighbors actually we all got a note
143:05
in our letterboxes
143:07
the build was very good just advising us
143:09
that they were removing asbestos they
143:11
were taking all the appropriate safety
143:13
precautions but they were and they told
143:15
us what days but they were doing it and
143:18
all that sort of thing because of the
143:19
health and safety obligations now which
143:21
are pretty onerous for a builder and for
143:23
the owner of the house um you know doing
143:25
this sort of work and of course the
143:26
council will insist on these things as
143:28
well
143:29
definitely definitely and you can't just
143:31
do it yourself and get rid of it in the
143:32
rubbish dump either i know they're
143:34
definitely going out in big trouble yeah
143:36
you have to get a special permit because
143:37
i had a garden shed that was made of
143:39
asbestos and i had it removed i had to
143:41
get a contractor in and you had to get a
143:44
special
143:45
certificate from the council for the
143:47
stuff to be removed and taken to the
143:49
local tip you just can't take it to the
143:50
top tip and dump it there yeah they
143:52
actually have a separate section within
143:54
the tip we where you take asbestos
143:58
yeah wow okay especially here because
144:00
obviously very bit deeper uh what's this
144:02
question i want to put a second house in
144:03
my backyard i'm thinking of using its
144:05
revolving credit to help fund that do i
144:06
have to contact the bank
144:08
um well you probably want to have a chat
144:12
to your local council first to make sure
144:15
that
144:16
they have this this funny rule about
144:19
land usage and um
144:21
how much runoff potentially is and that
144:23
sort of stuff so have a chat to your
144:25
council first because you know the last
144:27
thing you want is a home with a
144:29
potential home and income but you can't
144:31
sell it because it's i needed a consent
144:34
and it's unconsented
144:36
um then if the council says yeah that's
144:38
fine go ahead just chuck it on there if
144:40
it's a sleepout whatever it might be
144:43
you
144:45
haven't you can have a chat to the bank
144:47
also the other person that you want to
144:49
talk to is your insurer
144:51
so definitely talk to your insurance
144:53
company as well
144:55
it's not as if the bank's going to go no
144:57
jamie that's not allowed buddy you're
144:59
not putting the sleep out or whatever it
145:00
is on the back of your yard um all the
145:02
bankers interested in is will it detract
145:05
from the value of the home so if you're
145:07
going to whack
145:08
don't up a couple of four twos and onto
145:11
the house and make it look run out
145:14
um
145:16
then you in the bank might be interested
145:17
yeah um for a project
145:21
yeah
145:22
yeah
145:23
that's that sounds really good
145:25
then it's just just a question for you i
145:27
would have thought though if the
145:29
i suppose when the bank is lending you
145:31
money the bank is linked to the title of
145:33
the land
145:35
so if you alter the title of the land by
145:37
subdividing wouldn't you have to alert
145:39
the bank to that definitely yeah yeah
145:41
but you can um
145:43
build on
145:45
one title and yeah yeah
145:47
yeah but you definitely the bank will
145:49
not release anything unless they know
145:51
they get their hands on
145:53
enough to cover the uh remaining loan
145:55
balance yup yeah yeah okay yeah well
145:58
done good luck with your project jb
146:00
yeah yeah
146:02
um i looked forward to hearing about it
146:04
on fairgo
146:11
i think the issue about subdivision is
146:13
if you're planning on selling at some
146:15
stage in the future
146:16
you would need to subdivide because you
146:18
will need to get a separate land land
146:21
title uh again one of my young
146:23
colleagues uh her father's a builder
146:25
and they were actually buying a house
146:27
and willing to look to the lovely house
146:28
of nioh which was within her price range
146:31
or she in a partner's price range and
146:33
everything was ready to go and then they
146:35
found that it was actually the land was
146:37
on the top title of the house on front
146:40
and that had never actually been
146:41
subdivided and so her father advised her
146:44
not to go anywhere near it because of
146:45
all the legal issues associated with
146:47
that yeah crikeys
146:50
um
146:51
no uh if kurt's still there i kept still
146:53
there so yeah thanks kirk i've seen your
146:55
name pop up a few times this week so um
146:57
you gotta go you gotta go thank you so
146:59
much
147:00
uh kim thanks to you as well
147:02
and james just saying yes
147:04
um any other questions
147:07
come through we're still here otherwise
147:09
um
147:10
it'll be a party pooper but we'll leave
147:12
you to your busy days uh but keep the
147:14
questions coming we'll definitely stick
147:16
around for the questions
147:17
but it looks like people are dropping
147:19
out it must be lunchtime yeah
147:21
well that that that's been excellent
147:23
thank you just i am going to send an
147:25
email to
147:26
um
147:27
um paul
147:29
just advising that the time for this be
147:31
extended and for the
147:34
kiwisaver and the investor ones
147:36
and we when we run these because we do
147:39
these face-to-face and head office and
147:41
normally it takes two and a half to
147:42
three hours because there's so many
147:44
questions and things and that's why you
147:45
need to allow sufficient time you know
147:47
two hours is not sufficient to cover
147:49
everything
147:50
um because and in particular when you're
147:52
going through the handouts because um
147:55
as you noted there's always a good run
147:56
of handouts that we give out when we're
147:58
doing these as well
148:00
and people like to ask questions about
148:01
those as well and and so um
148:05
two hours is not sufficient so no and
148:07
you always get big numbers as well which
148:10
means there's more questions than you
148:11
would normally get
148:12
yeah which is really good on that and
148:14
that's what it's all about giving people
148:16
the opportunity to answer questions
148:17
about their particular situations um
148:20
you've got a question there mark from
148:22
jamie
148:23
um so if you use jamie if you're using
148:25
milestone for mortgage brokering the
148:27
service is free they actually charge the
148:29
bank for their services you you get it
148:32
free if you're using them for the
148:33
financial advice piece you'll get a
148:36
financial plan anything between 450 and
148:39
a thousand depending on the the depth of
148:42
the financial plan that you want
148:43
um and the reason why there's a
148:45
difference but if you if you look at the
148:47
marketplace you'd be paying probably
148:50
1500