Property Investors: The Best Kind Of Investor

Residential property investment can be very lucrative, especially for those people that began investing a long time ago and have seen massive capital gains in the value of their properties. Property investment requires a lot of study, careful attention to making certain they make correct decisions, and a great deal of care in choosing the people on their team.

Ashley Baker, mortgage broker at

The team surrounding a property investor are the professionals that the investor uses to complete and manage every deal. This includes their favourite real estate agents, their solicitor, their accountant and their mortgage broker. All of these people are vital for the investor, and it is supremely important that the investor knows their capabilities and the reliability of each team member and knows that they can trust them to provide the right information and the right services at the right time.

Often the newer property investors have no previous contact with a lawyer, an accountant, a real estate agent and a mortgage broker, and they rely on advice from other investors as to who to go to. This is obviously a fairly sound way of choosing the team, but the investor has to be very careful if they do not know the the other investors very well and so do not know how well to trust them. A good example when they need to be very careful as at investment seminars, were there will be a few specialists offering their services. The very best advice for an investor is to ask for multiple references from a number of different fellow investors up and down the country, because the quality of their team can make or break their success as investor.

A vital part of the team is obviously the mortgage broker, and there are a handful of mortgage brokers in New Zealand who have truly specialised in the property investment community. These brokers can operate throughout New Zealand, and their face to face meetings with their clients are mostly by Skype calls. They have a number of banks and non Bank lenders and high net worth individuals on their books, plus they are skilled in assessing the quality of any deal that their client is wanting to get a mortgage for.

These brokers need to protect their own reputation fiercely, both with other property investors and with their lenders. They do not want to be seem to be performing poorly for any investor, and they do not want to be seen to be sending rubbish clients to any bank or non Bank lender. Click this website for mortgage brokers Whangarei. These mortgage brokers have very good systems for managing their many clients, and as they get to know their clients they also get to trust them and so the amount of work involved in each deal can be very low in proportion to the size of the commission. This can be an extremely lucrative niche for mortgage brokers who are skilled and determined enough to chase the niche.

Mortgage Brokers In Small Towns

While there are a number of small time mortgage brokers in small towns, these individuals generally need a second or  even a third job simply because the amount of new business is much lower than in the cities, and the value of the loans are generally a lot this which will therefore translate into the value of commissions mortgage brokers earns.

Life would be generally quite hard for these independent mortgage brokers in Dunedin if they relied entirely on the income from that one business, so many also double as an insurance agent and perhaps even as a real estate agent. This means that they must have skills and qualifications across all the areas, but generally they are also well knowing and well trusted in town and so most of the new traditional business will still come to them.

In most cases these mortgage brokers will be skilled in the general rules of financial and they will be able to apply this to their own personal situation, and so it is common if there are mortgage brokers for them to be living in nice houses with the nice car and the nice boat.

The problem for customers in these small towns is that these brokers may not have the specialist skills that their city counterparts will have, and they may not necessarily have access to the non bank lenders or fully understand all the tricks necessary to get clients the mortgages they want. Customers experiencing this problem will need to approach city brokers, but the big advantage in 2017 is that it is much easier to deal with a broker remotely over the internet than it was in the past. Mortgage brokers living and working in Invercargill do a face to face at least once in order to properly identify  the client and to establish a good working relationship. However nowadays this can just as easily be carried out over a Skype video call.

What this means is that for customers in small towns they can access the large pool what competent mortgage brokers throughout New Zealand, and they can be confident that they will get a good result and the service will be good. There are in fact a number of mortgage brokers particularly in the property investing sector who have never actually met with their clients face to face.

Farm Mortgages, And Why Farmers Love Them

There are around 11,000 dairy farms in New Zealand in the same number of sheep farms, and probably a similar number of horticultural operations. Wild farms do not change owners nearly so much as residential property, when they do change owners it is almost always a highly complex and difficult challenge to finance. It is important to understand the dictionary definition of a mortgage broker for this article.

Dairy farms in particular are extremely expensive to purchase because of the land prices, and nowadays it is nearly impossible for individuals to work their way up through contract milking and share  milking to the point where they can purchase a farm. Most dairy farm purchases are achieved by groups of farmers or companies, and indeed dairy farming is steadily turning into a corporate commercial operation.

The complexities for the financing of the farm mean that only specialist farm sales managers and financiers can really be involved. It takes a very skilled and qualified financial advisor to fully understand the financial books for our farm, and to be able to advise potential lenders of the likely profitability in the short and long term of a farm. The financing will also be complex and that there could possibly be multiple sources of cash for a deposit including family money and other partners, and there may need to be more than one Bank involved and supplying the finance simply for risk management reasons.

The banks that lead to farms will always have specialist staff involved throughout the whole process, and in some cases this means that a mortgage broker is not required, but in the majority of cases a mortgage broker  is a very valuable addition to the team. The farm buyer is going to want to know that they are getting the best deal, and any bank is not going to be screwing them down in a way that is to their disadvantage. Mortgage brokers in Gisborne really need to be able to compare the deals across a number of banks, and to take into account all the other sources of Finance including the family and business partners, plus they need to take into account the financial needs of the business in the short term and during periods where production maybe load for example winter or during droughts. This means that the mortgage broker really does need an intimate understanding of farming practices and farming financing needs.

However for mortgage brokers in Nelson that can service this market, the rewards are significant as it is very common for farms to sell for many millions of dollars, and in 2017 a typical sale maybe around $10,000,000. One such sale alone will generate around $65,000 for the mortgage broker, and if they are good then they should see probably half a dozen of these types of sales every year. It can be a very very lucrative business.

Subdivision Financing

Mortgage broking  as a business or career can be pretty lucrative, given that brokers generally get paid around 0.65% of the value of each loan or mortgage they write out.

 One very lucrative line of work is new subdivisions, and brokers with the right experience and contacts can get themselves involved at all aspects of The Project, including the early start up phase with a developer, the ongoing development including the preparation and clearing of the land and the building of the subdivision, and then in the ongoing marketing of the individual properties to residential home owners.

 Generally financially will be required for around 80% of the total value of the subdivision and traps even 90% or 100% of the initial costs of the subdivision, depending on the financial reputation of the developer, click this link for more information.

  A good mortgage broker may be able to provide the finance for the purchase of the property to be subdivided, for the planning and consenting work, for the development of the roading and services, for the subdivision and site preparation of each separate lot, for the sale of each lot of land, and, if they are very smart, then for some or all of the financing for the new homes on the property. It is unlikely that a single mortgage broker will be able to pick up all this work, but good brokers can often pick up a very high percentage of the total work.

 A piece of wasteland that has been resigned from industrial to residential may sell for $500,000 for example, but then this land could be subdivided into 20 sections that sell for $300,000 each. Who develop I may need to raise 1.5 million dollars for example to fully develop the 20 sections, but once the sections are finished they will make $4,000,000 in profit.

 Who smart mortgage broker  will make $13,000 on the financing for the purchase and development of the subdivision, and then could make another $40,000 on the sale of the individual sections, even if they can only get 50% of the new houses being built  they could still  earn another $40,000. In other words a single development project for the best mortgage brokers could make them over $90,000, but the total hours involved could I mount two one or two weeks work, admittedly in short intense stretches at different points on The Project. Mortgage broking can indeed be a very lucrative business.

Re Roofing Older Houses in New Zealand

New Zealand has a very large stock of older houses that were built before the 1950’s and earlier. These houses are almost all timber framed on wooden piles, and unless they have been meticulously maintained then they will require periodic renewal.

This renewal will generally involves repiling the house at least once that’s life, repainting the house at least every 10 to 15 years, and re roofing the house every 20 to 30 years. Re roofing an old house is not that expensive in the scheme of things, but it can make a huge difference to how weather proof and storm proof the house is and to how attractive it looks. In general the new roof will be long run colour Steel, and this is both strong and very long life is the colour is coated on the steel during manufacturer and will not fade or deteriorate over a number of decades.

Many older houses have earthenware tile roofs which were stylish back in the day but are now a source of leaks and ongoing maintenance as individual tiles deteriorate. Tiles can also accumulate Moss and lichen, which weakens the tiles causing them to break or crack and two leak and be vulnerable during very strong storms.

The only problem for the roofing company who is replacing and earthenware tile roof is that they must dispose of the old tiles, and this can amount to a tonne or more of broken tiles. Removing the tiles from the roof and the building site his basically hard physical labour. However once the tiles have been removed from the site then putting up the new roof is a much easier proposition. The existing roof frames are generally made from original very strong native timber and were built to support a very heavy load, and in most cases for the roofer there is no repair work required to the frame.

The new roof is mounted on top of sheets of roofing paper, and is attached using self tapping roof screws. This attachment method virtually never results in damage to the roof, and is very easy for the roofer with a modern battery powered screwdriver. The attachment process is fast, efficient and safe, and the final result is a roofing Hamilton that is very firmly attached to what is generally a very strong existing timber frame. Modern steel roofs also have very good flashing options for the corners and bends, and the end result is always a very tidy job that is extremely waterproof and resistance to the wildest storms.

Making A Compost

The benefit of a homemade compost is that is not sterile as in bought compost. It still has the bugs and bacteria in the soil as it decomposes. Place the compost bin in a warm place where it will get sun, at least for some of the year when the weather is warm.

Collect all the weeds and grass clippings from the maintenance on the section and layer them between dry matter like dry leaves, cut up corrugated cardboard or balls of newspaper from mail outs delivered to the letterbox. This is an excellent way to recycle. Avoid putting any food scraps in the compost bin if you want to avoid having rodents. Instead, use a worm farm for your scraps.

Organic Fertilizer

Prepare the area for the compost. You can use 5 pallets screwed together or buy compost harvesters. The latter often don’t have enough air holes in them to make compost efficiently. Place a layer of sticks done on the base or use a pallet as the base. This will allow airflow up from the base. Alternate layers of brown and green and spray with some water. Cover with a carpet mat and/or tarpaulin.

The cold compost method is generally used by the home gardener who add little amounts over a long period of time. This cold composting method takes time. Hot composting is when the pile is made up in one go, creating a heap of at least 1 metre by 1 metre. The compost heats up and benefits from adding oxygen/air by turning the compost with a garden fork every few days then every few weeks.

Ensure that compost is well broken down before adding to new plants of seeds. It may be best to have 2-3 compost bins in a garden so one bin is used for several months and then left to allow the pile to decompose down into soil.