House prices are not only a key indicator of what is happening in an economy but they can also be a trigger for a change in economic conditions. Hence the state of the housing market comes under close scrutiny by the Reserve Bank and other Government officials. There is a very close link between house prices and inflation.
Tag Archives | money management
An interest-only mortgage, as the name suggests, is one where no principal repayments are required to be made during the term of the loan. It is usual for an interest-only mortgage to be interest-only for a fixed period of time, such as two years or five years, after which it can either be converted to […]
Receiving an inheritance presents a dilemma. Should it be spent on making dreams come true, or should it be conserved for retirement? A safe strategy would be to calculate the lump sum required to provide sufficient income for retirement and set that amount aside in a long term investment portfolio.
Let’s get it straight; your home is not an investment. While property appreciates in value over time, the best property to own from an investment point of view is a property that produces rental income as well as capital gain.
Starting an investment portfolio is usually somewhere near the bottom of a priority list for young people entering paid employment, who at that stage of life just want to have a good time. Of course, many employees are now members of KiwiSaver, which makes them investors, at least to the extent of 3% of their pay.
Most people dream of a comfortable retirement where a regular income flows into their bank account that is sufficient to cover more than just basic needs. For many retirees, this dream never becomes a reality.
Finding the deposit for a first home is a huge financial hurdle and around two thirds of first home buyers obtain a high loan-to-value ratio (LVR) loan. The LVR is simply the amount of lending compared to the value of the property, and an LVR of more than 80% is considered to be high.