The most important role that mortgage brokers play in the New Zealand residential property market is helping potential borrowers to get a mortgage where the customers other avenues have already failed.
Mortgage brokers in Nelson generally have a lot of prior experience in the banking sector, and they have a lot of contacts right across the mortgage lending sector which includes obviously the main banks and a large number of non Bank lenders including investors and cooperatives.
The customers who approach the a normal bank for a mortgage may find that their bag no longer use them as a safe bet for new mortgage, all the new rules may mean that the customer is now excluded.
Their mortgage broker on the other hand will know exactly the situation and each bag and what roles they are enforcing and what rules they are not enforcing. Most good brokers in this situation I really just have to look for the best deal for their customer, as in many cases the broker knows that they can always find money.
The recent restrictions introduced by the Reserve Bank of New Zealand means that most residential home owners must be able to find a 20% deposit before they can qualify for a mortgage from a standard Bank, and for many homeowners who are wanting to upgrade their house this deposit requirement is just too difficult to meet. Property investors must have 40% deposit for their new purchase, but if they have a number of properties were their percentage equity is very high because of the massive increase in property values over the last 10 years then a confident mortgage broker will probably be able to aggregate the value of a number of properties, and refinance their mortgages with a single new lender in such a way that the deposit required for the new purchase is much less than 40% and in some cases even 0%.
In this situation your mortgage broker must be able to show that the customer is able to make payments on the new mortgage, and so this requirement will weed out those investors that are simply stretching too far. For the successful investors in this situation, being able to borrow on the next view property was essentially a 0% deposit means that a increase in capital value on their new property is just sheer profit.
Mortgage brokers in Marlborough will know and understand this, and it must be frustrating for them to know that their clients are making vast sums of money while the mortgage broker must do most of the work around obtaining a mortgage.
As residential homeowners become financially established with their own home and a good secure job, then they often can feel tempted to buy or even build a holiday home or bach, generally close to the sea. This is a very Kiwi custom, and the holiday home is treasured by the family and often passed down from generation to generation. Many families revolve around there annual trip to the holiday home, and the long term memories of the family members are treasured.
In many cases the decision by the homeowner to build a holiday home or to buy one is largely an emotional decision, and often not a very good financial decision. This is because the holiday home does not necessarily appreciated value, but there will still be a mortgage to pay as well as rates and power and general maintenance. Typically the homeowner will also need a decent boat, and a decent four wheel drive vehicle to tow the boat.
Mortgage brokers Manawatu often get involved, simply because the homeowner discovers that their bank is not really that interested in lending them the money. The mortgage broker however may have a lot more information then the banks, and may be able to find a way to finance all of this for the homeowner. The problem is however that building a new batch is generally just as expensive as building any other new house, and is often a lot more expensive because the batch is at some remote seaside location.
Additionally the location will generally be fairly sparsely populated, and so there may not even be a sewage water service and so the new house will require a septic tank plus a roof water supply. The mortgage brokers Gisborne may find that they have to point all these difficulties out to the homeowner, but generally the homeowner has already set their sights I’m getting there bach plus the mortgage broker wants their business and so they will find a way to finance all of this.
Te end result is that the homeowner can end up with a very nice batch along with the boat and four-wheel drive to tow the boat, but they may find that they have to work almost all the year in order to make the mortgage repayments on their bach. When they do have a holiday at the bach they may find themselves lying awake at night worrying about how they are going to afford us holiday and make their payments for the mortgage.
A lot of homeowners in this situation find themselves renting out the holiday home, these days mostly using Airbnb, but this of course introduces a whole new set of worries in terms of property management and maintenance. However Airbnb has made it much easier for the owners of holiday homes to actually make the payments on their holiday homes, but it does mean that the holiday home may not be available when the homeowner wants it.
There are advantages and disadvantages of using a mortgage broker. Most of the mortgage brokers operating in New Zealand are working for themselves or for small companies, and while they may be highly qualified and experienced and registered, they will also have to spend a large part of their day seeking out new clients. While there is a massive amount of business for mortgage brokers in New Zealand, a large percentage of this business comes online through Google searches, and unfortunately most of this business goes to a select few large companies that have spent the big money to get themselves ranked number 1 or number 2 on a Google search.
The vast bulk of the remainder of the mortgage broking sector will need to have good networks with the banks, real estate agents, survey and companies, builders, accountants, lawyers and a host of other professionals that can put them in touch with potential clients. These superfly independent brokers also need to make certain that they have a very good referral scheme for existing clients, and that they are always chasing up existing and older clients for repeat business. As much as they may enjoy the cut and thrust of the actual mortgage broking activity, they will have to spend a lot of time and effort on this very essential marketing so what they have new business coming up through the door.
These mortgage brokers in Lower Hutt are unfortunately just simply not able to either find the expertise or from the work to get their own website built professionally and rent professionally so that a decent amount of web traffic is delivered to their website. The business of SEO it’s highly technical and very expensive men done by a competent professional, and the work is not complete until the website is also designed and built in a way that absolutely maximises the number of customers who complete the form and actually apply to become clients. There is a cost and Talent barrier that’s simply shuts out all bar the wealthy few mortgage broking companies.
However presents an opportunity for disruption by a specialist SEO company that knows exactly how to rank a website to number one and also knows how to build a website to maximise completion. This a specialist SEO company is also able to package the leads that come out of their website and deliver them in real time to the mobiles of mortgage brokers, then they will have a extremely interesting business model. The brokers will willingly pay good money for a pre qualified lead that is almost guaranteed to end up in new business, and if a specialist SEO company can really focusing and tap into the 9000 or more Google searches per month for mortgage brokers in Wellington then the business model can be very successful indeed.
Mortgage brokers get involved in all sorts of property development including subdivisions for Residential Housing. The subdivision maybe rural land that has been re-zoned by the city council, all the subdivision maybe vacant land lying within a city, click this link for more information. Vacant inner city land can be ideal, as it could be a hidden gem that has remained out of sight and mind four generations. Typically this may be a school that has been abandoned, or maybe government property such as railway yards which has been downsized and left fallow. While Neighbours may be well aware of a vacant school, as it is probably a target for vandalism and such activities, the neighbours may not be aware that industrial Wasteland is also vacant.
A problem for reclaimed industrial land can often be contamination because of Industrial chemicals such as oil. A residential subdivision in this case will need to make the land safe, and this could involve removing all the topsoil to a certain depth and dumping it and replacing it with new healthy topsoil.
The mortgage brokers Westland sees financing a new subdivision can be complex and involves a number of different stages and milestones. Typically the developer is already a high net worth and highly risk tolerant individual, and they may have purchased the vacant land out of their own cash reserves. Very high risk tolerance individuals may even raise the finance via a mortgage broker for the purchase of the land, but this can be very risky as they may be depending on council decisions to even allow the eventual subdivision to go ahead. In some cases the costs to bring the land up to a level that is safe for Residential Housing can destroy the project.
Nevertheless if a developer can borrow the money to purchase the property, and if his mortgage broker can get the money on good terms that doesn’t involve the developer inexpensive monthly repayments, then the developer can make a very large amount of money if they can be certain to get the subdivision approved by the council. This generally means that the developer is very experienced, knows the science and the town planning regulations in detail, is on good speaking terms with the key decision makers on the council and has a very good mortgage broker.
In many cases the vacant land may change owners a number of times before being eventually purchased by a developer that is actually capable of making something happen. It is probable that the purchasers who then on sell the land still make a tidy profit in the trade, but it is the developer who stands to make the most money but of course they also must take the most risk.
The mortgage broker in this case needs to be able to find lenders who can cope with the level of risk facing the developer, but there are a number of high net worth individuals and consortiums they are prepared to loan money to these developments, but of course at a high interest rate. If the developer has a very good reputation for completing the project they start then the lender or lenders may even be happy to let the developer capitalise the monthly repayments on the loan.
For the developer the high interest rates are just a mild inconvenience, because the loan is for relatively short term, it will be paid off as soon as the cash flow allows it, and the profit from the project will be vastly larger than the cost of the loan. Mortgage brokers Southland will know this, and they must be able to prevent this in a highly credible business case to lenders.
When renovating an old house it is always advisable and often legally required to rewire the house to modern standards. Depending upon the age of the house this work can be either fairly straightforward or very difficult and expensive.
If the house is very old then the original wiring could have been installed inside copper conduit, and the wall cladding will probably need to be removed in order to replace the wiring. Sometimes the wiring can be pulled through the conduit, but this is rare.
In older houses it is common for the wiring to have deteriorated, and the insulation could have hardened and cracked or could even have been damaged by Rodents. In any case wiring will need to be replaced with modern wiring and this may involve removing the wall cladding and tidy or removing sections of the wall cladding by cutting it out with a sharp knife. This is much easier to do if the builder is going to be replacing any wall cladding with modern gib lining, and the work for the electrician becomes very much like the work involved in a new home build.
At the very least for an old house it will be necessary to replace all of the lighting and power switches, as these very definitely deteriorate and become unsafe over time. New lighting and power switches can modernise the look substantially, and give a feeling of comfort to the homeowner that their electrical system is safe, but this also needs to be backed up with new wiring in most cases.
The difficulty for electricians Wellington in most renovations of old houses is that modern wiring practices demand that new wiring the installed from the metre box to individual rooms, and this can mean having to run wiring through the ceilings of an old house and cabling down to the new switches. Conditions can be hot and cramped for the electrician, also was required to do fine delicate work when making safe connections to switches in the metre box.
The electrician can’t really avoid this work, because in the end he or she will need to get it approved by the electrical inspector. This is always or at least should always be a key requirement from any homeowner getting electrical work done.
The easiest way to build a quality garden shed in New Zealand is to use one of the kit set sheds supplied by companies like Trade Tested for example. These sheds are pretty easy for the average home handyman to assemble, and the finished product is attractive and sturdy easy to use.
An essential first step is to build the floor for the shed, this can present a bit of a challenge if the ground is sloping. Normally on flat ground when you would use a concrete pad or a wooden floor, but on the sloping ground, it is almost always preferable and easiest to use a wooden floor set on posts. These need to be spaced at 1.5 metre intervals up the slope and 0.5 metre intervals along a slope (the joists will be spaced at around .5 metre intervals).The posts will need to be concreted into the ground although for a shed they do not need to be set deep.
The posts also need to be set level to support the joists that go under the flooring. The easiest way to get the posts level is to get one edge of the flooring level, then cut the post to be a few centimetres shorter than the depth of a hole and half fill the hole with wet concrete. The post can be jiggled into place using a spirit level to check the exact height off the fixed edge. It is well worth spending time on this step to get everything correct and level.
Once the concrete is sufficiently set after a few hours then the joists can be mounted on top of the posts and nailed or bolted into place. The trade tested sheds come and convenient sizes wood flooring in multiples of 1.5 metres, and the easiest and cheapest way to put flooring down for a large shed is 2 years 1.5 metre by 150 centimetre fence palings, 19 centimetre thickness will suffice. This makes it easy to leave a rebate around the edge of the floor for mounting the shed walls and ensuring that the floor as above the base of a shed, and is hence watertight and dry.
Here’s a video on how to build a shed on flat ground:
Video: Build Your Own Backyard Shed
You may also want to place a concrete pad and front of your shed and this should be done prior to assembling the kit set shed.