Insurance Changes & What Your Property is Worth Now
Now that National have won the election, we can move forward and hope that they’ll do the greatest possible job possible for New Zealand. Meanwhile, it’s life as normal, and with interest rates predicted to remain unchanged, we’ll give you our advice about what you should do.
What’s going to happen to interest rates?
In short, rates are expected to remain at similar levels over the next six months. The Reserve Bank wants to review the impact of previous rate increases, while also seeing what effects the current political climate, falling dairy prices, and net migration have on the wider economy.
My advice is that now is a good time to investigate committing to a long term fixed rate. Long term fixed rates have come down over the last month and if you’re prepared to lock in 3-5 year rates, then now would be a good time to do that. I feel there is good value in those loan terms, and they could provide a bit of certainty in the uncertain times ahead. Get in touch with me as we can do it on your behalf.
Your biggest asset may not be adequately insured
Would your insurance pay out enough money to rebuild your house in the event of a catastrophe? Many New Zealanders don’t realise that house insurance changed last year, and it’s now up to the property owner to calculate an accurate figure for their insurance. This video explains how the new “sum insurance” works. http://youtu.be/2O69q4UUu58
Recently, I met up with Mike Horgan from Construction Consultants Limited and he highlighted that most New Zealanders are under insured and their insurance would not pay out enough funds to cover the cost of the rebuild of their home. If you haven’t looked at your house insurance policy in the last year, do so now.
Here is what Mike and his team had to say. https://www.loanmarket.co.nz/nick-kotze/news/house-insurance-by-construction-cost-consultants
Wondering what your property is worth?
We all know that properties values in Auckland have been booming for some time now. If you want a rough estimate for what yours is worth, and how much prices in your suburb have increased by, here’s a useful link to calculate the value:
If you want to be more specific than just your local area, flick me an e-mail and I will send you a complimentary report on your house.
Hopefully all this information has been useful to you, l look forward to touching base again in October.