SOME
COSTS DIRECTLY RELATED WITH THE MORTGAGE – ESPECIALLY WHEN PURCHASING A
PROPERTY
SOLICITOR
- $750 TO $ 1,000 OR EVEN MORE
· TITLE CHECK, LIM REPORT
CHECK
· MORTGAGE DOCUMENTATION,
TITLE REGISTRATION,ETC
· EXTRA COSTS DEPENDING ON
OTHER WORK
LIM
REPORT - $ 300 APPROXIMATELY-
· DETAILS OF PLANS
SANCTIONED
· PROPERTY HISTORY,
FLOODING RISKS, ILLEGALLY ERECTED STRUCTURES, SOIL CONTAMINATION, COVENANTS,ETC
· RV REQUIREMENT DEPENDS
ON LENDER.
· REQUIRED WITH PRIVATE
TREATY – ALSO DEPENDS ON LENDER, PP AND CV
BUILDING
INSPECTION $ 350 TO $500-PEACE OF MIND
TRUST FORMATION - $ 1500 ONWARDS
-DISCUSS WITH YOUR SOLICITOR
LTC
- $300 ONWARDS
·
THROUGH AN ACCOUNTANT OR SOLICITOR
·
YOU CAN FORM IT ONLINE YOURSELF-RENTAL PROPERTY
BENEFITS
LOW
EQUITY FEE/MARGIN
·
DEPENDENT ON LVR – NIL FOR LVR BELOW 80%
·
CAN BE NIL UP TO 85% LVER AT TIMES
·
IS EITHER A FEE OR A MARGIN ON THE INTEREST RATE
APPLICATION
FEES_-CAN BE NEGOTIATED MOST OF THE TIME TO NIL
AFTER THE MORTGAGE
·
HOME INSURANCE - $40 ONWARDS
·
CONTENTS INSURANCE – YOUR CHOICE
WATER RATES – DEPENDING ON USAGE -$100 PER MONTH ON AVERAGE, CAN BE MORE DEPENDING ON
FAMILY SIZE
·
COUNCIL RATES
·
ARC CHARGES (BETWEEN $200 - $300PER ANNUM FOR AUCKLANDERS)
LOAN REPAYMENTS
·
LIFE INSURANCE/TRAUMA/DISABILITY
·
MORTGAGE PROTECTION INSURANCE
·
HEALTH/MEDICAL INSURANCE
·
INCOME PROTECTION INSURANCE
·
REDUNDANCY INSURANCE
23.08.2010
30.08.2010
preparing
for the unexpected
3
THINGS TO BE AWARE OF WHEN TAKING ON A MORTGAGE:
1) LOAN IS APPROVED UNDER A SET OF CIRCUMSTANCES…INCLUDING INCOMES ( JOINT
OR INDIVIDUAL INCOMES)…LOT OF APPLICATIONS RELY ON ONE
OR MORE OF THE APPLICANT WORKING MORE THAN
1 JOB TO SERVICE THE LOAN…WHAT
WILL HAPPEN TO LOAN REPAYMENTS IF 1 INCOME IS LOST OR JOBS ARE LOST IN AN UNEXPECTED SITUATION? PREPARE FOR
THESE SITUATIONS BY NOT BORROWING TO THEMAXIMUM AND ALSOPROVIDING FOR A LITTLE
BIT OF EXTRA REPAYMENTS WHEN THE
LOAN REPAYMENTS START…THIS WAY YOU CAN REQUEST THE LENDER TO RESTRUCTURE THE
LOAN AND SCALE BACK REPAYMENTS.
2) PROPERTY PRICES WIL CHANGE WITH TIME…YOU WILL EXPERIENCE PRICE SWINGS IN
BOTH DIRECTIONS….DO NOT BE DISTURBED BY DOWNWARD SWINGS IN PRICES….ENSURE YOU
BUY AT THE APPROPRIATE PRICE…THERE IS NO FOOLPROOF METHOD TO ENSURE THIS…YOU
HAVE TO DO YOUR HOMEWORK BEFORE BUYING AND
MAKING YOUR OFFER.
3) LOAN REPAYMENTS ARE BASED ON
CURRENT INTEREST RATES AND WILL
CHANGE WITH TIME. BE PREPARED FOR HIGHER REPAYMENTS WHEN INTEREST RATES
INCREASE. ONE WAY OF PREPARING IS
TO TRYAND
START MAKING REPAYMENTS AT HIGHER INTEREST RATE
LEVELS IF THE FAMILY BUDGET ALLOWS YOU TO. THIS WAY YOU ARE
NOT TOO MUCH BOTHERED WHEN AN
INTEREST RATE HIKE INCREASES YOUR
REPAYMENT.
IF
YOU ARE NOT PREPARED FOR EVEN ONE OF THE ABOVE THREE, TAKING A MORTGAGE IS NOT AN
OPTION YOU SHOULD SERIOUSLY CONSIDER.
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