Interest rates have never been lower, so is it worth your while to break your fixed-term mortgage for a lower rate? The answer is… Maybe yes, maybe no, but it’s definitely worth running the numbers.
To get the most value out of your land, development could be your best strategy. Your development can’t succeed without funding, so you need to have the funding sorted out before you go charging ahead with your plan to subdivide and build or create three townhouses on your section.
The faster you pay off your home loan, the less you spend in interest. We’re talking serious savings here. Say I have a home loan of $700,000 over 30 years and I’m paying 4% interest. My basic repayments on a principal-and-interest loan will be $3342.
If you own a home with plenty of equity, you may well be in a position to buy your first rental property without needing any cash.
A lot of Kiwi homeowners apply to their usual bank for a loan, fix the whole lot for two years, then agree to whatever rate the bank offers them at the end of two years.
Subdividing your property can be an outstanding way to turn an unused piece of land into a sizeable chunk of cash. You can subdivide and sell the land, or subdivide and build a house (or more than one).
The big banks are a great source of lending, whether you’re buying a house, developing or buying a car. They’re long-established, they have deep pockets, branches all over New Zealand and they advertise on TV – they’re a known quantity.
If you purchased your vehicle from a dealer and signed up for dealer finance, you may be paying more than necessary for your car, ute, van or truck.
