In New Zealand first home buyers find it particularly difficult because of the very high cost of housing. Apart from the small towns in rural New Zealand first time buyers are faced with taking out an enormous mortgage for what can often be a substandard property, and then they are saddled with massive monthly payments for many years which may prevent them from making any improvements to that property.
This is a fairly daunting prospect to virtually every first home buyer, and many simply procrastinate rather than take that all important step to purchase their first property. A very good first step, once they decide that perhaps they should look at buying a house, is to contact a good mortgage broker to find out just how much they can borrow, how much they can expect for repayments and what is a safe size for their mortgage. For these types of queries it is probably best to talk to an independent mortgage broker, who is much more likely to give them good sound advice and not just simply tell him to go elsewhere, as these people are very obviously potential new clients.
A good mortgage broker will provide a number of services, and for the client these services are almost always free, as the mortgage broker gets paid a commission by the bank. The obviously most important service for these clients is good sound advice. Fortunately for clients the New Zealand the mortgage broking sector is tightly regulated so that all mortgage brokers are fully qualified financial advisors, and are all members of high quality dispute resolution process, which means that clients can generally expect quality and independent unbiased advice.
Mortgage brokers could also provide a counselling or coaching service to help their a clients get the confidence to take the next big step. Brokers find themselves regularly reminding clients to complete and send in particular forms and details, and regularly advising clients that the prospect of the mortgage is not too scary and is more manageable for them then they may think (for more information visit www.nzmortgagebroker.net). In the end it is always the clients decision whether to proceed or not, but a good mortgage broker can help them get over the line, and of course everyone knows that once they do own a property and are starting to pay down the mortgage then in New Zealand this means they are starting a very good base for their future wealth.
In some cases customers find themselves in a situation where the banks are not prepared to help them and they are struggling to make their mortgage payments. This can impact ordinary house owners and property investors alike, and is generally a very scary and stressful time for the families involved.
Often these customers have arrears on an existing mortgage and no apparent way to catch up with the arrears and continue with the particular arrangement. There is a small group of mortgage brokers that specialise in helping these customers, and these mortgage brokers can find this little market segment very lucrative if not a little bit of extra work.
These customers generally are not in the position to pick and choose any deals that are offered, and so the success rate for the brokers that are able to find a solution is generally a lot higher then for the normal mum and pop customers. Around 70% of Mum and Pop borrowers do not go through with the deal, and all the hard work by the mortgage broker just goes to waste. Distressed customers on the other hand are desperate for a solution, and so not only is the broker getting a much higher percentage of completions but they are also generally getting larger mortgages for the customer than for the average mum and pop customer. The optimum solution for the distress customer is often a refinancing and loan aggregation solution, and these are almost always expensive. For the best mortgage brokers in Dunedin click this link.
In many cases the brokers will not use a bank but will instead use a non Bank lender or a high net worth investor who is prepared to take a somewhat larger risk with their money but obviously at a higher interest rate. Distressed customers are generally not in a position to quibble about a higher than normal interest rate, as all they are really wanting is a good solution that doesn’t involve them going bankrupt or losing the family home for example. Broker commissions may not be as high as they are with a Banks, but with the completions being much higher and the loan size being much higher for these brokers these deals are generally a lot more lucrative.
Brokers who specialise in this market will need to have carefully placed advertising and use Google AdWords to attract stressed customers, and while they may not see as many customers come through their door as might the large mortgage broking company that specialises in the mum and Pop customers, for the broker their business can be very profitable in terms of revenue per time spent.
Developers for commercial projects need the appropriate financing at the appropriate stage of the project, and while some may have a very good relationship with one bank, in most cases they will use a specialist mortgage broker. They will have a good relationship with their chosen mortgage broker and will trust the mortgage broker to do the right thing at the right time.
Danika Schulman, mortgage broker
Any commercial development proceeds as a number of different stages, with the first stage obviously being the purchase of the land which may even have an existing building they intend to knock down or significantly remodel. The financing for the purchase of the land will preferably be reasonably short term as the developer will almost certainly be selling the property at the end of the project. At this very early stage the project will have a relatively high degree of risk, and the mortgage broker will need to find a financier who is comfortable with this level of risk. This will almost certainly not be a normal bank but will instead be a second tier lender or even a collection of high networth individuals, and the lending will naturally be at a significantly higher price than the normal bank lending rates. For mortgage brokers Bay of Plenty click this link.
Once the land has been purchased then the developer will want to get all the planning and consents underway and completed as quickly as possible, and they will need some funding for this stage. The level of risk stays high until the final council consents have been received and the developer knows that they can go ahead, hopefully with the original plan which also has the original projected financial return.
When the planning and consents are complete then the developer will want to start work, and they will need more specialist finance via their mortgage broker, which will be paid out during the various milestones of the project. The financing at this stage may be deemed to be a lot less risky than at the land purchase stage and the broker may be able to get a much better deal for the developer and perhaps even roll in the land purchase (and pay off the expensive loan). As the development project proceeds more commercial interest will be paid by potential customers, and it is quite possible that the developer well actually sell most or all of their development even before the project has finished. This can be very lucrative for the developer, as the purchase price can be multiples of the cost of building and land purchase depending on the market conditions at the time. Even better for the developer, they get to pay off all their finance a lot earlier and save on the financing costs. While the developer is the one that takes the risk, its the mortgage broker who’s the brains behind the financing, but this can be very lucrative for the mortgage broker given the size of the loans that they have arranged.
If the mortgage broker is very smart then they may be able to arrange for the purchasers of the property to use them for their financing as well. There are understandably a few very wealthy mortgage brokers in any business community. For more information visit NZMortgageBroker.org.
Residential developers are a rare breed in New Zealand, as they need to have a high degree of confidence that the houses they build are going to sell quickly and for a good price. They need to have a very good team around them including urban planning specialists, very good architects and very good builders and landscapers. Click here for Nelson mortgage brokers.
Sarah Watts, mortgage broker at MortgageBrokersNZ.org
Once a residential development company gets this good team then they can become extremely successful, and there are a number of development companies up and down New Zealand they have been well known and successful even for decades. Generally the leadership of these companies is dominated by one or two very experienced developers who deeply understand the residential housing market in their areas, and have extremely good connections with the local council including the urban planning and consenting departments and the political leaders. This will ensure that the developers know where the market opportunities are in their local area, and what the planning requirements are and what they need to do to avoid any problems. Good developers work to a steady process where they have a number of projects on the go at the same time but at different stages.
One very important member of their team will be the specialist mortgage broker who makes sure that the appropriate finance is available at the appropriate time for all the projects. This can be quite complex where a number of projects are on the go, as the financing will need to work around the various stages of each project up to the time in the house is sold and paid for. Successful developers may even have sufficient cash reserves that they can finance their own developments, although many may prefer to borrow the development funds rather than risk their own money. The financing the mortgage broking obtains may be temporary finance that last as only long as each project, or it may be a more permanent large fund that can be used like a very large bank account with a large overdraft.
The specialist mortgage broker can also win business by providing finance to the new homeowners who are purchasing the properties, and so this role can potentially be extremely lucrative. A very good mortgage broker who keeps the developer very happy can also find themselves being the go to mortgage broker for the developer’s real estate agent. Interestingly for the mortgage broker, their income is from commission only, but the size of the commission for a mortgage for a modern new home can be well over $3,000, and yet may only require 2-3 hours work.
Levin is a reasonably large town with a residential population that is growing at a steady rate. New houses are always being built in the town and on the surrounding farms, but the rate of new buildings being erected is not sufficient to sustain more than half a dozen electricians doing the pre wiring and finishing work.
Fortunately for the electricians the housing stock in Levin is quite old, and so there is a continual supply of old houses needing their wiring repaired or replaced. Because Levin is so small most of the electricians will be well known to a large proportion of the population, and so word of mouth reference is the more common way to find them rather than simply searching on Google for electrician Levin.
A lot of the housing stock in Levin is so old that the wiring needs to be completely replaced, as does the switches and light fittings. The easiest way for the electrician to do this work as if the house wall linings are being replaced at the same time, as it is way easier to run new wiring an empty wall cavity then to have to run up behind an existing wall. In many cases the wiring needs to be replaced because it is so old that it is dangerous and a fire risk, and the homeowner is probably finding that often the switches is don’t work properly or reliably. Upgrading old wiring is essential if the house is to be sold, and in any case the new switches and light fittings can look very flash in a old house and can add significantly to the value.
Often old houses need their plumbing upgraded as well, and this almost always involves installing a new hot water system which definitely needs an electrician. Sometimes the homeowner chooses to use an instant hot water system which requires quite tricky electrical wiring.
In many cases old houses also need an alarm system installed, and a good electrician is required for this particularly if security lights and alarms are installed around the outside of the house. It is important that these operate reliably, so that the homeowner and even more importantly potential burglars know that the technology is keeping the house safe. Also an old houses the electrician will need to install the communication cables such as the fibre optic cable in the wiring necessary for television and audio systems. The work for an electrician in Levin can be varied and very busy.
Almost all new houses built-in New Zealand news wooden frame use wooden framing, using timber extracted and build from New Zealand exotic pine forests. All the timber used in the framing is treated, and provided the frame goes up quickly and the roof is put on before the frame gets too wet then the timber should dry out nicely and not move at all after the house is built.
The frame gets delivered to the site with all the walls and roof trusses premade in a factory, and once the concrete floor has been poured and has been cured for 2 to 3 days in the frame can be erected very quickly indeed. What’s the frame is up and has been firmly connected to the floor and the other frames then under New Zealand law scaffolding must be erected around the entire house. Old style builders may scoff it was apparent extreme level of safety, but the law is the law, and all new houses must have a safe working environment inside and outside the house for the workers.
Accident statistics speak volumes, and the level of accidents due to falls on a building site have been reduced enormously since the introduction of this law. The requirement for scaffolding obviously adds a delay to the project and adds not insignificant cost, but the return on investment is real given that huge long term cost of any accident.
All building sites must also have very clear signage on the front fence explaining that the site is it dangerous area and listing the dangerous. Or building sites must also be completely fenced off to prevent random individuals from entering the site. This can appear to be overkill to old style builders, but when taken in conjunction with the other safely steps that creates a safety mentality for everybody on the site and the results definitely show this.
Old style builders can be very dismissive of some of the other safety steps, including installing hooks around the ceiling years of every room so that netting can be hung while builders Christchurch are working in the roof space. The law surrounding the safety netting is a direct result of analysis of long-term statistics for work site accidents. The meeting is only removed once the roof has been installed and no more work as needed inside the roof space.
The combination of secure fencing, good standard safety signage, scaffolding around the entire house, internal netting and a constant focus on safe behaviour means that accidents on building sites have decreased dramatically in New Zealand over the last few years. The foreman or team leader also must lead a safety discussion at the start of each day, so that all risks are identified and safety steps decided on. Whenever a new subcontractor comes on site then the building team leader must repeat the same message to the new subcontractor.
One disadvantage for the new homeowner is that they are no longer allowed to wander through the site whenever they want to in order to check building progress. This is a small price to pay for the increased safety for all workers in the site.
Heavy machinery is an essential part of any modern construction project, and along with the heavy machinery is there skilled operator and the skills support crews working with the operator. It is important to learn how to become a crane operator.
On a modern high rise building site the most visible heavy machinery is the tall crane towering over the site and over the surrounding City. The casual Observer wonders about the mentality call someone who is prepared to climb the very skinny Tower every morning and sit there even in recently high winds concentrating on moving heavy machinery and equipment and materials around the building site.
Crane operators are a special breed, as they need a high degree of skill and coordination to operate the crane safely and efficiently, a degree of fitness in order to climb up and down the tower everyday, and a strong nerve in order to operate themselves safely at height.
The work is highly technical, and requires a good Communications system between the ground crews and the operator. The operator needs to know the weight of each load so that they can safely judge how far out on the crane the load can be moved. The cranes are very carefully counterbalanced and have Smart Systems in place to measure the loading and indicate when a problem is likely to arise, but it still needs a skilled and experienced operator to interpret the systems and operate the machinery.
One particular danger for the contractors and builders on the site is that heavy loads are being moved around above their heads. A skilled builder or labourer is required to make sure there is load is very firmly attached to the crane, but mistakes do occasionally happen and every builder on the site needs to be aware of what the crane is doing at all times.
One particularly high tech operation that all crane companies need to carry out is the erecting of the crane and the steady raising of the crane over the life of The Project as the high rise building precedes skywards. This work involves the crane lifting its own frame, and while it looks complex and dangerous all crane companies have mastered this operation and it’s always carried out safely. At the end of the project the crane must dismantle itself and Lara itself to the ground, and this is also a high skilled and technical operation that needs to be worked through via a series of set steps.
The fossil fuel industry – and the world population that has nearly entirely dependent on this industry – is wholly responsible for the climate change that is massively threatening our planet. This sheer wealth that is generated for the owners and investors in the fossil fuel sector is addictive and corrupting, and is the reason why the industry has made no attempt to clean up the emissions to protect the planet from global warming. The owners and investors see short term gain as preferable to the long-term benefit to their grandchildren if global warming where to be halted or even reversed.
The problem is really one of tragedy of The Commons, is no one company or individual can be held responsible for the current problem, and if any one company was to attempt to change their ways on any sort of scale then the costs of that would be an economic and would make them uncompetitive then what is a vicious market. There is simply no incentive that is strong enough to force a change in any of these Industries. Initiatives such as the Paris climate Accord a start, but the vested interests who own the fossil fuel companies will make certain that any changes take as long as possible, so that they can extract as much value as possible in the meantime.
The reality is that no matter how good the intent is of the politicians and scientists, the fossil fuel industry has too much power and too much at stake to make any significant change happened in the near term.
Fortunately redevelopment of electric vehicles and transport as a service coupled with development of solar and wind power and massive battery storage means that the fossil fuel industry will have no choice in the matter. Whether they like it or not their industry is going to be massively disrupted over the next 45 years as the world wakes up to the fact that the fossil fuel industry is going to die. Even the smallest drop in demand for oil will have a massive impact on the price, given that the oil exporting countries depend so heavily I’m selling as much oil as possible. The world market will be flooded with surplus oil, and the resulting price will make extracting oil completely an economic for all but a small handful of Middle East countries.
The transition away from fossil fuels to transport as a service using electric vehicles will take place over a very short time frame, and the pace of this transaction will be dictated largely by how fast the autonomous electric vehicle fleet can be manufactured. The problem for the existing manufacturers of the internal combustion plate is that they have to turn on a dime and change to electric vehicle manufacturing, and only one or two manufacturers will survive this transition.