Nicholas Schnell - Mike Pero Mortgages Hawkes Bay

Nicholas Schnell - Mike Pero Mortgages Hawkes Bay Based in Hawkes Bay, I can help secure you the right home loan, insurance or finance so that you can achieve your financial goals.

Quite predictable, but here it is, OCR down to 3%. Banks had predicted it anyway with most of them dropping shorter term...
20/08/2025

Quite predictable, but here it is, OCR down to 3%. Banks had predicted it anyway with most of them dropping shorter term rates prior.

Great news! The Reserve Bank has reduced the OCR further. Generally, with a lower OCR comes lower interest rates. Get in...
27/11/2024

Great news! The Reserve Bank has reduced the OCR further. Generally, with a lower OCR comes lower interest rates. Get in touch to explore what this means for you

The Reserve Bank has reduced the OCR further.The RBNZ has said future changes will depend on how the economy is doing. ...
10/10/2024

The Reserve Bank has reduced the OCR further.
The RBNZ has said future changes will depend on how the economy is doing. So we're in this situation where house prices have come down a fair bit, and now interest rates are pulling back. Most of the main banks dropped their rates by 0.5% following this OCR announcement.

30/06/2024

Its the 1st of July and with that comes a few changes when it comes to borrowing large sums of money from the banks.
1. Deposits for investment properties have decreased from 35% to 30%. You can still only borrow up to 80% of the value of your owner-occupied property. So, say your own home is worth $1M and you have a mortgage of $500k. You have $300k to use as your “deposit” for an investment property, so you could purchase up to $1M for the investment if you could afford it with the rental income.
2. Debt-to-income restrictions have kicked in. Your debt can’t be more than 6 times your household income for an owner-occupied property and no more than 7 times for investors. This is not too bad, having debt of less than 6 times your household income for your own home is a good thing because it means you’ll pay off your home quicker, save on interest and will be able to move on to investing for retirement.
Get in touch if you want to explore options relating to your situation.

24/11/2023

There is some good news for those interested in property coming out of the coalition government announcement today. I reckon these two below are going to benefit both property investors and tenants because previously landlords were having to pass so many new expenses onto the poor tenants, and rents were skyrocketing. This also scared investors off, meaning less rentals, and more upward pressure on rents.

• Encourage more landlords to enter the rental market by allowing 90 day notices to end a periodic tenancy, and return tenants’ notice to 21 days and landlords’ to 42 if the tenant wishes to move or the landlord wishes to sell.

• Increase the speed at which mortgage interest deductibility is restored for rental properties with a 60% deduction in 2023/24, 80% in 2024/25, and 100% in 2025/26.

Interesting seeing these graphs from QV.co.nz for Napier, Hastings and CHB. It certainly feels like there's a lot more i...
22/11/2023

Interesting seeing these graphs from QV.co.nz for Napier, Hastings and CHB. It certainly feels like there's a lot more interest in property. Quite a few first home buyers coming out of the wood work.

It feels like we're at or near the bottom of the market (and that's what a lot of economists are saying).

So in terms of the 'property cycle' it seems like a good time to buy. However, interest rates are still high and so is inflation and the cost of living.

So now, more than ever, buying needs to be a very calculated decision. If you're an owner occupied buyer - you need to calculate how the mortgage repayments will fit into your budget.

If you're an investor its about how the new purchase fits into your portfolio (even if its your first investment) and the exact financial impact it will have. For cashflow, it certainly helps if you can put in a bit of hard cash (rather than using equity alone).

06/07/2023

I’m so proud of a client of mine that settled on the purchase of her first home in Saint Leonards, Hastings, yesterday. She did it on one, average income which is always difficult (it’s so much easier for affordability when you have two incomes coming into the equation), but especially in the current environment. The key to her success was this:

1. She is a saving machine! By putting money into both Kiwisaver and her savings account each pay cycle, she was able to build up a good deposit.

2. She had no short-term debts (including buy now pay later facilities). These things really mess up your affordability when applying for a loan because they suck valuable cash that could be used for servicing a home loan.

3. She was realistic about her price point – she had a modest budget and she stuck to it. Too often first home buyers want their first home to be their forever home, which just makes it too hard.

4. We went to a bank that would allow us to use boarder income to help service the loan – that’s an extra $200-$300 available to help pay the mortgage.

5. She got prepared, got her accounts in order, got a pre-approval, and diligently hunted for a few months before finally getting one across the line. It can be tough house hunting and not being successful with a few offers. But it is a sweet moment when you settle on that first home.

Well done!

I’ve just had this three bedroom relocatable home moved onto the rear of an investment property in Waipuk today. Amazing...
03/07/2023

I’ve just had this three bedroom relocatable home moved onto the rear of an investment property in Waipuk today. Amazing what they can do. The lending for this isn’t secured by the dwelling- it’s best when you secure it with another property/ies. Expensive council fees in CHB, but it’s still a good yield (nearly 9%). The whole project will be around $250k when ready to tenant. Thanks to Houses On The Move for the smooth move and help with consents.

26/06/2023

I know it is tough out there in terms of interest rates, but it’s becoming increasingly obvious that we are at, or near the bottom of the property cycle based on reports from economists and banks. If you are a first home buyer and can make the numbers work in your budget (comfortably afford the loan after all other regular/living expenses) then it seems like the next while will be a good time to buy. For investors it is still tricky – rents keep moving up and house prices are down, which makes yields more attractive, but interest rates are up. With loan repayments being the biggest expense in your rental property, it’s difficult to make cashflow positive. That can be helped by putting in a cash deposit rather than using equity alone, and then of course trying to find a place with a high rent relative to the cost of the property.

22/12/2022

Is this a good tie to buy property?

07/12/2022

A few words about the benefits of putting in at least some cash deposit when using equity in your owner occupied home to buy an investment property

Address

Hastings
4122

Opening Hours

Monday 9am - 6:30pm
Tuesday 9am - 6:30pm
Wednesday 9am - 6:30pm
Thursday 9am - 6:30pm
Friday 9am - 5pm

Telephone

+64 21 316 131

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