Craig Pope Mortgage Update October
If you are like me, you are Election fatigued! I think we all want to move on with life and have a new plan moving forward as a country (and some summer weather would help).
With the cost of living being at the top of everyone’s mind, it’s been a good time to review a lot of things financially. That includes in your business/job and personally.
With mortgage volumes being a bit lower than usual, in our industry it’s prudent to check what we spend money on and where we can save money or be more cost effective. Since going back out on my own again, I have had to put on every hat possible in my business and its meant using some new technology. Though occasionally I drag my 16 year old daughter in to the office to do some cleaning and odd jobs!
If you are employed, is it time to investigate what you are worth pay-wise? Check how much you are paying into KiwiSaver. If cashflow is tight, perhaps check you are just paying the 3% minimum and worst case, take a small break on contributions for a few months.
In your personal life, it’s also a good time to review personal expenses and see where there is wastage or areas you can cut down.
I hate weeding/gardening (as does my wife) and we annoyingly have a big section. So, we ceased having an occasional gardener in and ‘employed’ one of our two teenagers. Though their motivation can vary depending on how desperate they want to buy something.
De-cluttering and selling stuff you don’t need is an awesome way to free up cash. We’ve recently culled a lot of furniture, antiques and art that sits around collecting dust. Not only do we have more space, but we also have some extra spending money for summertime.
Speaking of space, clearing out the garage is another good way to potentially raise cash and make space. If you have a family with growing needs, carpeting your garage, and insulating your garage door is a cool way to make a games room or teenage hangout!
Of course, interest rates are high on everyone’s mind and don’t appear to be going down anytime soon. Depending on the Economist you listen too it could be 12-18 months before we see any easing.
We are helping a lot of people at the moment review their current loan situation. A mix of short- and medium-term rates being the most favourable. And interestingly the longer-term rates are the lower across the board, but most people tend to be cautious locking in their rate too long.
Changing banks may be an option, but it needs to be putting you in a better position. Whilst another bank may seem like it’s got a cheaper rate, there is more complexity to that including the cost and hassle to change banks. And would another bank lend to you in todays assessment environment.
But it pays to get expert advice and we are here to help you anytime, reach out on 0800 000 518 or email craig@craigpopefinancial.co.nz