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My Shares Doubled And All I Got Was A New Kitchen · That Home Loan Hub

• 0:10
  SPEAKER_01: Hello and welcome back to that Homeland Hub.
• 0:13
  SPEAKER_01: Hello, James.
• 0:14
  SPEAKER_01: Aloha.
• 0:16
  SPEAKER_01: You did the same thing, but with aloha.
• 0:18
  SPEAKER_01: I love it.
• 0:19
  SPEAKER_01: All right, James, what are we talking about today?
• 0:22
  SPEAKER_00: Okay, dokie.
• 0:24
  SPEAKER_00: Well, well, so I've got a real interesting mix of clients at the moment.
• 0:27
  SPEAKER_00: It's been a real it's been a very tough year for a lot of industries in New Zealand.
• 0:31
  SPEAKER_00: And I think probably the only industry that's doing well was agriculture or um the primary sector.
• 0:38
  SPEAKER_01: And before you go further, I looked at my shares yesterday for Fonterra because I suddenly got a$5 dividend.
• 0:44
  SPEAKER_01: And I was like, ooh, I've got a$5 dividend.
• 0:46
  SPEAKER_01: This is cool.
• 0:47
  SPEAKER_01: Because I'm not really investing in shares, I just buy random shares.
• 0:50
  SPEAKER_01: And I realized I have shares with Fonterra.
• 0:52
  SPEAKER_01: And then I looked back, their shares were like at$4.
• 0:55
  SPEAKER_01: And now they're at$8.
• 0:56
  SPEAKER_00: Doubled, yeah.
• 0:56
  SPEAKER_01: They doubled.
• 0:58
  unknown: What?
• 0:58
  SPEAKER_00: Yeah, so this is what can happen sometimes on the market.
• 1:01
  SPEAKER_00: And um, if you like, if you look at some of the property stocks, um, you know, I'm thinking retirement villages, carrying income property, uh, vital healthcare properties, go back a year and how low they were.
• 1:13
  SPEAKER_00: And you know, the market, financial market, is always about six months ahead of what the actual economy is doing.
• 1:19
  SPEAKER_00: So if you have an interest in property, you don't quite have enough money to buy a house, but follow the property stocks on the New Zealand share market.
• 1:28
  SPEAKER_00: Um, so you got your Ryman, you got your vital healthcare property, uh, you know, Kiwi income.
• 1:33
  SPEAKER_00: So it's a great way to learn about property.
• 1:35
  SPEAKER_01: Awesome.
• 1:36
  SPEAKER_01: Um, cool bananas.
• 1:37
  SPEAKER_01: Well, I'll put you back onto construction.
• 1:40
  SPEAKER_01: I'm so sorry to distract you, but yes.
• 1:42
  SPEAKER_01: So agriculture was doing really well.
• 1:44
  SPEAKER_01: Now, construction.
• 1:45
  SPEAKER_01: What's happening with construction?
• 1:46
  SPEAKER_00: Okay, so it's been tough, right?
• 1:48
  SPEAKER_00: So, and um so it's been a tough year for construction.
• 1:52
  SPEAKER_00: Not a lot has been going on.
• 1:54
  SPEAKER_00: Um, however, I have noticed in the last two or three months that um because I have a family member that's in uh does new home sales for in in that area, and she is beginning to get a lot more uh interest coming through about people wanting to build.
• 2:10
  SPEAKER_00: So um that's really good because it was pretty quiet m in the middle of the year, picked up at the start of the year.
• 2:14
  SPEAKER_00: Yeah, then it got a bit um it went a bit flat with all the stuff that's happening overseas, I think.
• 2:20
  SPEAKER_00: Yeah.
• 2:20
  SPEAKER_00: Um so the middle part of the year was really slow.
• 2:23
  SPEAKER_00: But yeah, we're getting a little beginning to get a lot of interest in these new houses, uh, these new houses, building new houses.
• 2:31
  SPEAKER_00: So I think that's quite interesting, and they're quite competitive with you know, buying a new house building a new house with a and buying a secondhand house, I suppose you'd call it.
• 2:42
  SPEAKER_01: Second hand.
• 2:42
  SPEAKER_01: I love it, second hand.
• 2:44
  SPEAKER_01: Um yeah, it's interesting because I also noticed I have a couple of clients, they've got um sections, you know, in Waikanae and a few other places, and they were trying to sell those sections because there was a lot of um, you know, anxiety around will they still have their jobs or not with the government restructures?
• 3:02
  SPEAKER_01: And they thought, we're not gonna build, we're just gonna put it on hold for now.
• 3:06
  SPEAKER_01: And then suddenly they decided, nope, we're good, the jobs are safe, let's build.
• 3:10
  SPEAKER_01: Yeah.
• 3:11
  SPEAKER_01: So now they're coming back to looking at building, which is um, yeah, so the confidence is lifting there.
• 3:16
  SPEAKER_01: Definitely.
• 3:16
  SPEAKER_01: I've seen the same.
• 3:18
  SPEAKER_00: I think the the main thing holding a lot of the builders are all the clients that I'm dealing with, the main thing that's holding them up is actually selling their existing property.
• 3:27
  SPEAKER_00: That's just taking a little bit longer than the what they they thought it would.
• 3:31
  SPEAKER_00: So they've got the capital to build the new house.
• 3:33
  SPEAKER_01: Yeah.
• 3:34
  SPEAKER_01: Um, but other than that, yeah, they um What three things people should know if they want to build a house?
• 3:41
  SPEAKER_01: Their first home, what should they know?
• 3:43
  SPEAKER_00: Well, that's a really good question, Zevaniso.
• 3:46
  SPEAKER_01: How much deposit do they need?
• 3:48
  SPEAKER_00: Well, that's another really good question.
• 3:51
  SPEAKER_00: Ask me all the questions.
• 3:52
  SPEAKER_00: Do you want to throw it back at me?
• 3:53
  SPEAKER_00: Hold on a second.
• 3:54
  SPEAKER_00: I've just done one of those, so I should be able to remember.
• 3:57
  SPEAKER_00: Uh we have to go phone a friend on that one, sorry.
• 4:02
  SPEAKER_00: Call a friend?
• 4:02
  SPEAKER_00: All right, friend is here.
• 4:03
  SPEAKER_00: I'll phone my friend Zevenis, so friend is here.
• 4:05
  SPEAKER_01: Right, guys.
• 4:06
  SPEAKER_01: If you are looking to build your first home, you need as little as 10% as well.
• 4:11
  SPEAKER_01: So 10% deposit, and usually the banks like fixed price contracts.
• 4:17
  SPEAKER_01: They don't like um sometimes you know I had like builder clients in the past and they're like, oh, I just want to build my own home.
• 4:23
  SPEAKER_01: The way the bank looks at it is that if you're building your own home, you're not making any money during that time because obviously you're concentrating on building your own house.
• 4:31
  SPEAKER_01: And usually they would like a little bit more deposit in those situations.
• 4:34
  SPEAKER_01: So they want like 30 or 40% deposit.
• 4:37
  SPEAKER_01: If it's uh labor-only, because we call them labor-only contracts.
• 4:40
  SPEAKER_01: But if it's a fixed-price contract, let's say it was a big group like DJ Gardner, Stonewood Homes, um, landmark homes, etc.
• 4:47
  SPEAKER_01: etc., then um, yeah, you can get away with stand and same for investors.
• 4:52
  SPEAKER_01: Um, a lot of people don't realize, but if you're an investor, if you've got 10% deposit, you can actually get a new build.
• 4:58
  SPEAKER_01: And that's a really awesome loophole for those that are thinking they need 30% to get on the property ladder because investment um new builds are exempt from RBNZ rules.
• 5:10
  SPEAKER_01: Okay.
• 5:10
  SPEAKER_01: So there you go.
• 5:12
  SPEAKER_00: That's very useful.
• 5:12
  SPEAKER_00: Yes.
• 5:13
  SPEAKER_00: Maybe I should be doing the interviewing.
• 5:15
  SPEAKER_01: That's okay.
• 5:16
  SPEAKER_01: That's okay.
• 5:17
  SPEAKER_00: The second thing I would say is um is just to make sure that when you're dealing with the construction companies, that you're you're aware of the full price of what it's going to take from beginning to finish because there's different uh standards that the that the construction companies have.
• 5:34
  SPEAKER_00: So you want to make sure that the full pri you're aware of the full price right from the beginning, rather than having a whole lot of add-ons at the end that you weren't really prepared for.
• 5:44
  SPEAKER_00: Um so that's it, that's something that catches quite a few people out.
• 5:48
  SPEAKER_00: Um obviously there's you know, there's a bit of competition between the construction companies and they want to make it as attractive as possible to you initially.
• 5:55
  SPEAKER_00: Yeah.
• 5:55
  SPEAKER_00: So just be aware of those what the full price is gonna be.
• 6:00
  SPEAKER_00: Uh, third thing.
• 6:01
  SPEAKER_01: Third thing, what should I do?
• 6:04
  SPEAKER_00: Well, you want to have a decent uh uh financial advisor.
• 6:09
  SPEAKER_01: Decent financial advisor.
• 6:10
  SPEAKER_01: Oh, that's a good one.
• 6:10
  SPEAKER_01: That's a good one.
• 6:12
  SPEAKER_00: All right, yeah.
• 6:13
  SPEAKER_00: Whether you call me or you about it, isn't it?
• 6:15
  SPEAKER_01: I'll tell you a funny story.
• 6:16
  SPEAKER_01: I had a client ring me and he's like, My little brother, he's building a house.
• 6:21
  SPEAKER_01: He's about to sign this, you know, package for land and house, and he is dealing with this bank, and this bank is being very difficult.
• 6:29
  SPEAKER_01: Can he call you?
• 6:30
  SPEAKER_01: I was like, Yeah, that's cool.
• 6:31
  SPEAKER_01: He already signed sales and purchase agreement, like literally battling with his own bank to get a mortgage approved.
• 6:38
  SPEAKER_01: He calls me in.
• 6:39
  SPEAKER_01: I talk to him and I'm like, I don't see a big problem here.
• 6:42
  SPEAKER_01: I mean, it was a little bit a hairy one, but you know me, like nothing is really much of a problem.
• 6:46
  SPEAKER_01: So I was like, nah, we can make it work.
• 6:48
  SPEAKER_01: Um, we had approval for him within two days, which was phenomenal.
• 6:51
  SPEAKER_01: And he was blown out of the waters.
• 6:53
  SPEAKER_01: And then on the third day, I had another bank come in with the approval.
• 6:56
  SPEAKER_01: And um, he had a really decent deposit, had 200k deposit, you know, 800k build and package, land and build package.
• 7:04
  SPEAKER_01: So I couldn't understand what was going on there.
• 7:06
  SPEAKER_01: But I think it was just a mixture of his job that he was doing.
• 7:09
  SPEAKER_01: He was doing two jobs, his wife was doing two jobs, and his bank couldn't wrap their head around how it all works in terms of income for them.
• 7:17
  SPEAKER_01: And yeah, we managed to get them around and stuff.
• 7:19
  SPEAKER_01: And I think again, that makes a difference if you have a person that knows what they're doing.
• 7:24
  SPEAKER_01: And look, without bragging, I've already built several properties myself, and I've put through, you know, hundreds of clients through their own build projects, whether it's labor only or fixed price or turnkeys, done hundreds of them.
• 7:36
  SPEAKER_01: So I think it's knowing how to propose a deal the way the bank will like it that makes all the difference.
• 7:43
  SPEAKER_01: Yeah.
• 7:44
  SPEAKER_01: And yeah, we managed to get him approved and hopefully he'll settle next week and ready to go.
• 7:48
  SPEAKER_01: But he was like, I can't believe how easy it's been.
• 7:51
  SPEAKER_01: Because he was just sitting there battling with his own bank for weeks and weeks at a time, and yeah, wasn't getting anywhere.
• 7:58
  SPEAKER_00: Well, that's sort of what's what's happened with us as well.
• 8:00
  SPEAKER_00: Most of the clients that are coming, uh coming to me uh have been sort of turned away by the banks or they've been put off by the banks.
• 8:08
  SPEAKER_00: And yeah, they are a little bit more complex, but it's just e you know, because we're doing them all the time.
• 8:14
  SPEAKER_00: It's it's it's just easy for us to analyze the situation and know what the banks want and which banks are more likely to go for which application.
• 8:22
  SPEAKER_01: Um, that's all good.
• 8:28
  SPEAKER_01: Awesome guys.
• 8:29
  SPEAKER_01: Well, that's a wrap.
• 8:30
  SPEAKER_01: And um if you've got any topics you want us to cover, please let us know.
• 8:36
  SPEAKER_01: We're here for you.
• 8:36
  SPEAKER_01: We're here to provide you with information we can.
• 8:39
  SPEAKER_01: And um yeah, so keep us going.
• 8:42
  SPEAKER_01: Thank you so much.
• 8:42
  SPEAKER_01: See ya.
• 8:43
  SPEAKER_01: See ya.