Mortgages for Property Investors

You are around 1.6 million households of New Zealand, and all these 63 % for around 1 million own their own home. About 14% of homeowners or 140000 alone more than one property, although not  all of these will be property investors.

However there are still a large number of property investors in New Zealand, and while most will be classified as long term buy and hold, there will be still a number of new entrants into the market and there will be a number of existing investors where you are always heading to or replacing their portfolio.

A small percentage and comparison of property investors are actual property developers, and the reason this is a small percentage of simply that property development is a very risky enterprise. A property developer needs to acquire land, do the upfront planning and Gain can sense and then build the development, and then finally they must of course sell the property they have developed. The real risk for developers is that they can barely miscalculate the difficulty of gaining consent or of meeting engineering requirements, and they can Miss calculate the absolute difficulty will cost of the development and they may badly overestimate the market demand. Often for developers there is a macro event in the economy that badly impacts on them such as a financial crash that may remove a lot of potential buyers of the year property.

For mortgage brokers in Southland the difference between the long term buy and hold and the much more shorter term property developers is extreme, as the long-term buy-and-hold investor is most probably going to want a stable long term mortgage as low and interest rate as possible. The developer by contrast is most likely first and foremost to just need short-term financing for the duration of The Project, and would actually not be overly concerned about a high interest rate as long as the financing meets all the needs of The Project up to the point of sales. Mortgage brokers in Otago need to be able to live be competent in all areas of the market, but we are out for a long term buy and hold the mortgage and the mortgage application process is very similar as for the ordinary residential buyer, for developers the mortgage and mortgage application process may not even be with a bank that may instead be with a non Bank lender. In both cases it will be necessary for the mortgage broker they have a good Insiders understanding of the investor’s business and financial status.