Trading up or renovating?
While buying your first home is exciting – eventually you’ll find yourself getting antsy about your next property move. Kiwis just can’t help themselves. Is the kitchen outdated? Is one bathroom really enough? What would a study be like for the kids?
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It's easier with the right broker
The saying goes – everything is easier the second time around. However, the property market moves and shifts all the time, so many home owners find that when they return to the market, it’s very different to when they last bought. That’s where the knowledge and expertise of a good mortgage broker comes in. Your Mike Pero Adviser can guide you on what the market is doing, and what the best deals are across their panel of lenders. Whether you’re moving to the next street, next suburb, or right across the country – your Mike Pero Adviser can make your second, third and dare we suggest, fourth property purchase, more enjoyable and stress free.
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(Mike Pero Advisers are paid by the lender once your loan is settled)
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Home renovating runs deep in our DNA
Renovating your current home is the next viable option for many home owners who want to expand or improve their current property. Moving to a new home isn’t always the solution – so instead, renovating by knocking down walls, adding extensions and installing a new kitchen can be the better solution. When renovating, it is critical to have the right finance in place – but with so many options, it pays to have a mortgage broker who can guide you through the process. In some cases property owners will be able to redraw any additional payments they’ve made on their existing loan to cover renovations. In other cases you will need to apply for a supplementary loan and draw on the equity you have built up in your home or investment property over time. Knowing the intricacies between different loans is what your mortgage broker does best.
Building your dream home is achievable
When property prices are at a premium, many Kiwis look at options to build on new land or re-build on their existing site. There are numerous benefits to building. You have control over the property location, size, and materials – and there is something about being involved in the design and build process that gives owners a greater sense of achievement. The downside is that it takes time, money, and the decision-making process can become stressful.
Each bank will have different policy requirements for obtaining finance for building a new home – that’s why it’s crucial to work with a mortgage broker. For example, one bank may require you to contribute a 50% deposit to purchase the land, while the next bank may only require 20% for the same scenario. Most banks will value the house by adding the land price to the build cost, and require anywhere from 10% to 35% of the total value as the deposit. A few lenders will also look at the end value, so if the house is worth more upon completion, the lender counts that as equity. Confused? Most people are.
However, with the right information and advice, the process can be simplified. That is where the expertise of a mortgage broker really comes in handy. Your Mike Pero Adviser will walk you through each phase of the finance process, review all your options to help manage the risks, and find ways to make it work best for you.