Both men have extensive backgrounds in financial advising and mortgage brokering and will make valuable additions to the mortgage express team says Marcus Williams, Mortgage Express CEO.

“Despite the recent challenges Christchurch has faced, it is pleasing to see that with the support of Harcourts we have been able to grow our team to assist more vendors and buyers. We know that buyers are facing additional challenges at the moment and due to our knowledge of the industry and real estate market, by using a Mortgage Express Broker we know they will be getting best advice. With the partnerships we have with a range of lenders, we can provide them with all the options to make informed decisions.”

Tony Falloon has over 10 years experience as a mortgage broker within the Christchurch region. in addition to running his own home loan franchise for the past 6 years, Tony’s wealth of knowledge in both brokering and financial services as well as his customer focused approach will make him a welcome addition to the Phoenix Real Estate Franchise.

Phoenix Real Estate Ltd Business Owner, Bruce Lindsay says Tony’s extensive background provides him with a breath of knowledge allowing him to assist the client in all manner of situations from investment to multimillion dollar property purchases. “Tony is an experienced broker who knows the market and business very well. He is a welcome addition to the team and it’s fantastic to have an in house person on board available to work closely with our agents and clients”.

Richard Allen also brings a solid wealth of knowledge to the table with 20 years experience in the banking and finance industry. Richard comes from working as an independent mortgage adviser and broker however he also has worked in areas such as commercial lending and risk insurance. Richard’s strong and diverse background will be a valuable addition to the Four Seasons Franchise, says Four Seasons Realty Business Owner Kevin McKay “His experience coupled with his firm belief in solid communication will be key to working with our agents to build cliental within the franchise.”

Mortgage Express has been in operation since 1998 and has a team of experienced brokers based all over New Zealand. With recent growth to the team in the Christchurch region, Mortgage Express brokers are now more equipped to assist vendors and buyers during this challenging period.

“I have strong customer service ethics with my number one focus being on ensuring my clients have the best possible customer experience. This involves actively communicating with my clients on an ongoing basis, obtaining the best possible deal and following up to ensure a smooth and successful outcome”.

“I will assist you with your home loan requirements, whether it is your first home, subsequent home or investment properties. In addition, I can also offer a comprehensive risk insurance service. I believe it is important that clients are aware of what options are available to protect them against their potential risks and protecting their assets”.

Richard is married with two children. His interests include most sports, particularly golf.

“For quality home loan or insurance advice, in a friendly and professional manner, please contact me. I look forward to working with you to help achieving your goals”.

Client Testimonial:

“Once again,You have been awesome. We have really appreciated your help and look forward to hearing from you in the future when you think we should secure a fixed rate.”

Craig & Amanda, Christchurch

Client Testimonial:

“We can happily and confidently recommend Richard Allan’s service to anyone shopping for a home mortgage.  Within a few days Richard had loan approvals from three banks allowing us to choose the deal and arrangement that suited us best.  And we bought in Northland – quite a ways from Christchurch where Richard works out of – but that was not an obstacle at all.  Richard proved himself to be efficient and professional in every regard.”

Kim & Celia, Kerikeri

Client Testimonial:

“Thank you for your invaluable service. We will not hesitate to refer you to any of our friends should they wish to purchase a house.”

Guirinder & Olga, Rolleston

Client Testimonial:

“I was introduced to Richard when buying a new property and was looking to obtain the best possible mortgage rate and terms. It was great to have Richard on board as he knows the options on offer and found the best option – this man does the work to make the process as stress free as possible! With his banking background, Richard was able to advise me and help me to tailor interest rates to meet my needs as he is independent of any one lender. I was reassured by his on-going presence should the market change (it is great to have some-one who has their eye on what the world financial markets are doing!). Richard is an excellent communicator who kept me informed all the way. I appreciated his professionalism and discretion. I look forward to future dealings with Richard & highly recommend him to others.”

Jo, Rangiora

According to these figures, the banks seem increasingly willing to write mortgages with loan to value ratios (LVRs) in excess of 80 percent, with mortgages at LVRs above 90 percent also on the rise at ASB, BNZ, and Westpac. ASB’s residential mortgages at LVRs above 90 percent increased $353 million, BNZ’s increased $81 million, and Westac’s increased $29 million. ASB’s mortgages at LVRs between 80 and 90 percent rose $133 million, Westpac’s increased $152 million, and BNZ’s increased $71 million.

According to international consultancy PricewaterhouseCoopers, renewed growth in the banking sector is due mostly to a long-term move away from fixed-rate mortgages and towards floating-rate mortgages. “This trend has taken a while to go but now it has really kicked in, and it’s coming through in these numbers,” said PwC New Zealand financial services partner Sam Shuttleworth in the latest edition of New Zealand Banking Perspectives.

Over the past few years, borrowers around the country have generally favoured floating rates above fixed rates, with 58 percent of the market now on floating rates compared with only 13 percent in 2007. The banks are now looking for new ways to continue this growth, with a relaxation in mortgage rules one of the ways to keep more money coming in. Weekly mortgage approvals are once again topping $1 billion nationally, with ASB and Westpac the most aggressive institutions.

It’s not all good news however, with residential mortgages at ANZ New Zealand falling in contrast with other banks. At ANZ, mortgages at LVRs between 80 to 90 percent dropped $28 million, with the 90 percent plus category decreasing by a massive $304 million. Overall however, the big five banks now have $14.3 billion worth of mortgages at LVRs above 90 percent, and $20.3 billion at levels between 80 to 90 percent. These figures have increased $300 million and $500 million from the last quarter respectively.

Along with strong overall growth, bad banking debts have also fallen by 35 percent, decreasing $400 million from a year ago. However, despite strong growth, Sam Shuttleworth from PwC still thinks there are many challenges for the banks to meet in 2012. “The banks’ sunny spell since 2010, brought on by improving net interest margins and reducing bad debt expenses, is now threatened by conditions that could be as bad as the 2008 GFC.”

While nothing is ever certain in the ever changing global financial climate, recent increases in mortgage approvals are a good sign for property buyers in 2012. With the banks relaxing mortgage rules and still experiencing strong growth figures across the board, lets hope this trend can continue throughout 2012 and beyond.

According to the Real Estate Institute of New Zealand (REINZ), property sales increased 20.1 percent in December when compared to December 2010. Overall, sales volumes for 2011 increased 9 percent compared to 2010, with strong December results suggesting good things to come. REINZ also recorded a drop in national property prices in December.

Some areas experienced much higher sales volumes than others, with Auckland recording its strongest December results since 2006. Overall, six regions; Waikato/Bay of Plenty, Manawatu/Wanganui, Taranaki, Nelson/Marlborough, Canterbury/Westland, and Otago, recorded their strongest December figures since 2007, while only two regions, Hawkes Bay and Wellington, had lower figures than December 2010.

“December has been a strong month for real estate sales in New Zealand, with this being the strongest level of transaction figures in December since 2007, and Auckland having its strongest December since 2006. Across the country sales volume is up by over 20% compared to December last year with some regions such as Manawatu/Wanganui and Taranaki reporting increases of more than 40%,” said REINZ chief executive Helen O’Sullivan in the latest report.

However, while annual sales volumes were up by 9 percent, and 61,269 properties were sold throughout the country, 2011 still struggled to reach half the volume of the 2003 peak. Levels were also well below the average sales volumes recorded in the 90′s, and even more depressing when viewed as moving annual totals against the total number of properties in the country.

So, while we are still a long way from the heady sales volumes experienced during the peak years of 2002 to 2007, there are some indicators that we will see more improvement in 2012. Low interest rates and improved banking conditions are already leading to growth in the first home market, with falling prices in December also likely to enhance the ambitions of first home buyers.

According to REINZ, prices were down 3.4 percent in December on a monthly basis, and just 0.9 percent up when compared with December 2010. “While the number of transactions is rising, prices have eased back from last month’s record highs, with some exceptions in parts of Auckland and the Canterbury/Westland region,” said O’Sullivan.

There are many reasons for the strong growth experienced in the early part of the century, including lots of investor activity and relatively relaxed banking conditions. While low interest rates and falling prices will lead to increased sales over time, a rise in investor market activity will also be necessary for New Zealand to experience sustained, long-term growth.

Reserve Bank Governor Alan Bollard said: “Since the time of the December Statement, financial market sentiment has improved slightly, with increased liquidity in European financial markets. However, the global economy remains fragile and risks to the outlook remain.

“World prices for New Zealand’s export commodities have remained elevated but the recent appreciation of the New Zealand dollar is reducing exporters’ returns. The European debt crisis has also increased the cost of international funding, which will likely pressure funding costs for New Zealand banks over the coming year.

“In the domestic economy we continue to see modest growth. Over recent months there have been signs of a limited recovery in household spending and the housing market. Further ahead, repairs and reconstruction in Canterbury will also provide a significant boost for an extended period, though there may be further delays resulting from the aftershocks.

“Reassuringly, inflation pressures have remained well contained. Inflation has declined and now sits below 2 percent.

“Given ongoing uncertainty around global conditions and the moderate pace of domestic demand, it remains prudent to keep the OCR on hold at 2.5 percent.”

Choosing The Right Business

The primary focus of your business should match your own skill set. For instance, a party planning business will require a highly organised person with excellent interpersonal skills. Running a retail shop takes someone with great customer service, an eye for purchasing, as well as strong management skills. It’s important to consider the day to day tasks your business will involve. Also, it’s important that you will enjoy them, as you’ll be putting in plenty of hours.

Of course, there will likely be a gap to bridge between the skills you do have and those you don’t. For instance, if you’re not sure about things like GST, it may be wise to take a bookkeeping course.

Many businesses fail because they are started for the wrong reasons. Being self-employed is hard: you’ll likely be working more hours and making far less money, at least for the first few years. You’ll need to have plenty of passion and drive.

Do Plenty of Homework

Before you start investing your time and money, it’s important to know that your business can work. If you know someone who has a similar business, ask them for their advice. Even if they are in a different industry, you can learn from other’s mistakes and take on board what they did right.

Plan for Success

Perhaps the most common reason for small business failures is bad planning. Each component of a new business should be well mapped out. Even if you are working alone from home, there are many aspects of running a business that need to be taken into consideration.

Before you do anything else, have a business plan in place. If you are looking at borrowing money, this is the first thing a bank will want to see. Target markets, operations, human resources and financial projections could all make up part of a business plan.

Another important part of your business plan is where your business is going to be located, and how people will find you. If your business depends on people coming into a shop, suite or factory, then location is everything. It’s well worth researching the right kind of spaces, their cost and availability.

Knowing your target market and how you will reach them is also important. There are a range of ways you can market your business, consider which ones will work for you.

Making Your Start

While not possible in every situation, many people choose to start building their business while still working in a full time job. The benefit of this is that when you make the plunge you will already have some clients and income to get you started. The downside is that your time is limited, and burning the candle at both ends can quickly wear you down.

There are many aspects of making your small business plans become a reality. No matter how great your ideas are, you’ll need the right skills, planning and marketing to see them come to fruition.

Multi-unit housing developments have long suffered from negative stigma in this part of the world, which has become famous for its wide open spaces and outdoor lifestyle. However, with increasing pressure on housing, ever-expanding suburbs, rising rents, and increasing commute times, some residents are taking renewed interest in high density living. A number of local governments have also come out in support of high density living, as a way to improve traffic congestion and reduce pollution.

While high density housing is widely accepted throughout Europe, parts of the United States, and much of the developing world, it has always had trouble being accepted in Australia and New Zealand. There are a number of cultural reasons for the great suburban sprawl, including a dream of home ownership that is linked to an outdoor lifestyle and fuelled by the availability of endless suburban land releases.

While dense housing projects are often the result of shear necessity, especially in the developing world, there are also many places where high density living is more of a choice. Barcelona is one of the best examples of a highly centralised urban space, with a population of 4.5 million living in an area that is only 803 square kilometres. While this kind of density is not unheard of in Europe, it seems difficult for many people in Australia and New Zealand to accept movement in this direction.

There are also a number of practical reasons for this resistance however, with power, water, and sewage infrastructure in local cities generally not designed for high density living. In another interesting take on the possible negative implications of high density housing in Sydney, Professor Joel Kotkin spoke of the potential links between lower fertility rates and denser living conditions.

At the Property Council of Australia’s Cities Summit last year, Kotkin said: “Why, in a city like Sydney, where you had wonderful inner ring suburbs, with single family homes, very pleasant places, places you want to raise kids, do they want to densify them and turn them into places people don’t want to raise kids? Where you have high amounts of high-density housing you have very low birth rates … where you have density, you tend to have very few children.”

With increasing pressure on the housing market in many of our largest cities, some experts are suggesting it is time to lose our inbuilt fear of high density urban living. While infrastructure issues and quality of life concerns still have to be overcome, for many people, it is high time to focus our energies on the improved design and regulation of high density housing projects rather than their outright rejection.

After experiencing a 16 percent trading range in 2011, it is remarkable that the dollar closed the year only 2.7 percent down from the start of 2011. However, while the local currency may have faired quite well in a year of local natural and global economic disasters, there are many questions still plaguing the markets for 2012. Depending on how the euro crisis is managed, the New Zealand dollar could steer in either direction.

According to Derek Rankin, a director at Rankin Treasury Advisory, Europe will pull itself up by the bootstraps and enjoy stable growth as the euro zone deleverages. In a statement to stuff.co.nz, Rankin said “We know that the New Zealand dollar moves about 17.5 per cent per year (on a long term average basis), meaning if we see a plan tabled that the market can accept we could finish the year in the US80c range.”

Not everyone is so optimistic however, with Imre Speizer, a market strategist at Westpac, expecting a much rougher six months ahead for the euro zone. “Our best guess is that over the first half of the year we’re looking at fairly bleak outcomes to the euro zone crisis. We think it will get worse rather than better,” said Speizer in a statement to stuff.co.nz.

While it is difficult to quantify the impact of the euro crisis and its flow-on effects within Asia and the Pacific, there are some things we do know. Europeans will generally have less money to spend, which will affect both the export and tourism sectors in New Zealand. If the local currency appreciates against the Euro, like many analysts are forecasting, there will also be a strong impact on our ability to compete in global markets.

There are also likely to be follow-on effects in terms of access to credit, with credit packages for Greece, Italy, Ireland, and Portugal reducing the availability of credit to other nations. Even small increases to the cost of borrowing will have an adverse effect on the local New Zealand economy, which is heavily dependent on the rest of the world for its long term growth prospects.

While there will certainly be many challenges to meet over the next 12 months, it remains to be seen how much the ongoing crisis in Europe will affect the New Zealand dollar. The currency markets are likely to remain volatile for at least the medium term however, as policy-makers in Europe attempt to manage the ongoing sovereign debt crisis in the coming months.

Before we forecast property prices for 2012 however, it is important to take a look at current values in context with 2011. According to QV, New Zealand residential property values rose 2.4 percent over 2011, making them 3.5 percent lower than the market peak of 2007. However, while values were mostly on the rise throughout the year, the market also experienced very low sales volume that was 20 percent lower than the long term average.

According to Jonno Ingerson in the latest QV report, “Despite national values moving upwards during the year, the property market continued to be characterised by lower-than-normal sales volumes. First home buyers came back into the market in 2011, encouraged by low interest rates, while investors were largely on the sidelines.” According to Ingerson, the outlook for 2012 is largely mixed, with different parts of the country expecting very different conditions.

Property values in Christchurch are highly dependent on ongoing seismic activity and rebuilding efforts, with Hamilton and Tauranga values expected to remain stable. Property values in Wellington and Dunedin are more difficult to forecast, as are conditions in regional centres. “A strong rural sector typically has a positive impact on the property values in towns supporting those areas, likewise the coming or going of large local industries can have a significant impact,” said Ingerson in the QV report.

Auckland is likely to experience the most movement over the next 12 months, and continue the strong growth seen in late 2011. During the last few months, Auckland property values have risen to record highs above the 2007 figures, a situation many analysts think will continue. Weak building activity, fewer new listings, and a growing population are all signifiers of high property prices, which some analysts forecast will rise by almost 30 percent in the next three years.

According to the latest Infometrics study forecast, Auckland will see an annual price growth of 9.2 percent in 2012 when compared to 2011. “Auckland house price growth is forecast to be the fastest in the country at 9.2 per cent per annum. The persistently low level of residential construction activity in Auckland over the past few years has led to a shortage of property in the region. These under-supply issues are set to provide good support for property prices over the next 12 months.”

With property prices also influenced by international economic conditions and consumer confidence, it will be interesting to see what lies in store for 2012. While the strong growth in Auckland is likely to continue throughout the year, and other markets should remain stable, it remains to be seen how well the local economy reacts to the euro crisis and how this will affect the domestic property market.