Western Homes : April 21st 2011
24 Thursday, April 21, 2011 Western Homes A true treasure in Titirangi Top spot: This spacious Titirangi property is perfect for families. Picture perfect: From the home's deck you can enjoy gorgeous city views. Lovely living: Both the lounge and dining area open out to a sun-drenched deck. People looking to buy in picturesque Titirangi are sure to be charmed by 17 Tawini Road which offers peace, privacy and a gorgeous outlook over native bush towards the city. For those who don t know the location well, Tawini Road is one of Titirangi s most popular addresses, full of quality homes, situated just minutes from the village. The solid four-bedroom home at number 17 has the added advantage of a nice flat driveway and ample off-street parking which includes an internal access double garage. Discreetly set back off the road, everything about this property is spacious -- from the generous 1014 square metre section to the 290 square metre home which is simply stunning in weatherboard and tile. There s also a one- bedroom self-contained studio with a full bath- room, which could pro- vide additional income or would make an ideal teenage retreat. Step inside the main home and you ll quickly see its potential. The middle level features a contemporary kitchen, separate shower and toilet, spacious master bedroom and large open plan living and dining area which opens out to a deck with views of Auck- land City. Upstairs there are two more double bedrooms, while on the lowest level you ll find another bed- room and bathroom, along with a living area which flows out to a sec- ond deck complete with spa pool. This wonderful family home is priced by nego- tiation and had a CV of $830,000 in 2007. It can be viewed at the open home this weekend from 11am-11.45am. Properties of this class and quality are few and far between - so make sure you don t miss out! For more information contact Brett Stonham of Ray White Te Atatu Peninsula on 834 2840 or 027 476 6015. Eight step plan to kill your mortgage By ALLISTAR WALKER I talk about a plan because often when people take out a mortgage, there is no concrete plan, but rather fuzzy, mentally recorded objectives. The amount of borrowing that you consider should be part of an overall written plan that meets with your ultimate goals and values backed by a robust strategy to achieve these. Most people who take a mortgage over their own home want to get rid of this death-grip as soon as poss- ible. By adhering to a plan and a few basic principles this can be more easily achieved. 1. Make regular repayments as large as possible. For instance, our basic philosophy is to make your minimum loan repayments based on an 8 percent interest rate over 25 years. The loan may well be taken out for 30 years and also at a low rate of 5.75 percent per annum. The higher the repayments the faster the loan is repaid and you can do what really matters in life - LIVE. Say a $300,000 loan takes 30 years to pay at 6 percent per annum with repayments of $1800 per month. For a start over that 30 year period it is unlikely that you will experience 6 percent per annum for any length of time. The same loan scheduled over 25 years at 8 percent will increase repayments to $2316 per month. The average interest rate over the last 30 years is a little above 7.5 percent. So by setting your repay- ments higher, you will achieve more principal reduction under our cur- rent extended low interest rate regime. When rates do go above 8 percent you will have money in the bank so to speak and will probably not need to increase your repayments to meet the higher interest rates. Such a strategy as outlined above could take up to nine years off your mort- gage, all for the sake of an extra $12 to $13 per day or a couple of coffees and a bun. 2. Make lump sum payments. We advocate that people create a reserve fund buffer , preferably deposited at another bank or safe house. However once this is done, then any windfalls of money should be used to knock off the mortgage, to further enhance the drive to being mortgage free. Already the coffee tastes sweeter. Analytically this makes sense as well. Taking that you pay an average of 7.5 percent after tax for your mortgage, you would find it difficult to get a guaranteed, risk free 7.5 percent per annum after tax performance on your lump sum investment. 3. Pay your mortgage when you are paid. If paid fortnightly, pay the mort- gage fortnightly and if paid monthly, pay it monthly as soon as you are paid. There is a lot of misinformation in the market place about fortnightly vs monthly. The simple fact is that the more and quicker you pay, the quicker the mortgage is repaid. There is no magic or benefit for those being paid monthly, to repay the mortgage on a fortnightly basis. The magic is in the numbers ie 12 monthly payments of say $100 per month is $1200 per year. The so-called fortnightly advocates work on the fact that if you halve the monthly amount then pay this fortnightly ($50 per fort- night) you now pay off $1300 per annum (26 x $50). Effectively you are paying more off, but it makes no sense for those on monthly incomes to hold off some repayment for a fortnight. 4. Use a revolving or reducing credit account. This facility can be used to pay your salaries into and draw expenses from. Often there is a monthly charge and it is a question of weighing the advantages of not having funds sitting around idly waiting for you to spend them and so reducing your interest bill as against any charges that may apply. 5.Check your statements. Banks do make mistakes. Sometimes they may not change your interest rate when you fix, or strange debits could appear on the account. 6. Beware of flashy premises. Mortgage reduction agencies and no-deposit loans are risky. There are fish-hooks and you should talk to a Registered Financial Adviser before paying any money for these offerings. 7. Keep the mortgage alive. When the loan is repaid, don t have your mortgage released. This way if you need to borrow in the future, say for alterations, a trip, a car, you already have the documen- tation in place. Hence no need to go through the expense and rigmarole of re-registering a mortgage. 8. Consult a registered or authorised financial adviser. This will be an accredited mort- gage adviser who will analyse your position and provide individually tailored advice for you in line with your goals. DIY is not always the best option when it comes to structuring mortgages, insurances and savings. For little or no cost you can set up your strategic plan with someone who understands the numbers and the vast range of products available to achieve what you want to do. In fact it should save you heaps in the long haul. Care has been taken to ensure that any information is accurate. No lia- bility is accepted for its use. Enquiries are welcome. Allistar Walker is a Senior Fellow of Financial Services Institute of Australasia and an accredited mortgage/insurance advisor. His full disclosure is available free at www.mortgagehelp.co.nz. Phone 410-6023 or email email@example.com.
April 14th 2011
April 28th 2011