Mortgage Trust Wins $3.1 Million Case
In this weekís news on mortgage, an Auckland mortgage trust has won a court case which resulted in the trust winning $3.1 million. This case claim was against a company part-owned by a bankrupt property developer who also has recently invested in a failed gulf resort in the Bay of Plenty. The property developer landed in a huge debt of $13 million because the gulf resort was a complete fiasco. FM Custodians was awarded judgement for $3.1 million on behalf of the Auckland Mortgage. This was in relations to a case that they took last month against Hamilton-based SOS Investments, which also failed to provide a legitimate defence to the claim. This particular story on property investment tells us that it is always wise to take some precautions when committing to certain investments, and especially property investments.
Mortgage Rates Likely To Rise Again
Other news for this week on mortgage includes number crunchers re-thinking how quickly they believe mortgage interest rates will rise. It’s in response to the high exchange rate, weak inflation and yesterday’s data showing few people have received substantial pay rises. Westpac’s Dominick Stephens still expects the Reserve Bank to hike rates in June – but no longer believes there’ll be another rise in July. Instead, he suggests the Reserve Bank will slow the pace of hikes as all the latest data shows inflation is significantly weaker than expected and that reduces the need for OCR hikes.
Auckland City Mortgages Comparison
First-home buyers in Auckland pay a significant more amount on mortgages compared to others starting on the property ladder nationally. Recent news has shown us that these first-home buyers pay almost an extra $200 more a week on mortgage repayments. “You work out $200 a week at 52 weeks a year, it’s going to mount up pretty quickly. The reality is, Auckland house prices are well in advance of the rest of the country.”
She said Auckland’s population growth and lack of house building were behind the difference. This could be important information for you if you are paying mortgage repayments in Auckland city, and is definitely something you should look into.
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