HOW TO AVOID THE HOLIDAY HANGOVER
We’ve all no doubt been dreaming of a holiday. To fly from the shores of New Zealand and ‘vacay’ somewhere tropical and exotic. But the term “holiday”, like other fun phrases such as “social distancing”, “rona”, and “team of 5 million”, has taken on a new definition. “Holiday” has more recently been associated with the phrase ‘mortgage holiday’, a mortgage extension scheme designed to alleviate stress on homeowners whose household incomes were affected by COVID-19.
The mortgage-holiday was initially a six-month extension where homeowners could defer mortgage repayments, whilst still accruing the interest on the principal of their loan. As we welcomed Daylight Savings on Sunday 27 September, many homeowners would have also welcomed the extension of the mortgage-holiday, taking effect until 31 March 2021. Individual circumstances play a large factor in determining the personal choice to ‘stay on holiday’ or ‘get back to the grind’ of the real world. And whilst BNZ, Westpac, ANZ and other major banks share caution of extending the mortgage-holiday, lending experts affirm that the bigger picture needs to be considered when mapping out your next move. For some, this may be a reluctant holiday.
Lending experts, including Enable Me managing director Hannan McQueen, share that homeowners need to consider if they’re in survival mode and need the cash. Parking the problem can give you breathing space in the short term but the payments will initially be higher further on down the track, also increasing the repayment period of your mortgage. So, what can be done in the now to ensure you can get a little more control and perspective over where you’re at?
Understanding the monetary value of your home is essential when piecing together your situation and planning your future. An updated appraisal and robust conversation with property experts enables you to grasp what’s in your pocket and better plan your next move. This may not necessarily mean that you’re looking to sell; rather, it will give you perspective and consideration for choices that may have otherwise been overlooked. Our Telos Tribe are experts in the narrative of property and can assist you in a complimentary, no obligation appraisal.
What else is out there? Once you understand the current value of your home, you will be in a much stronger position to compare your options. Comparing homes without an understanding of worth is much like apples and oranges. Having a conversation with one of our experienced and friendly Telos Tribe will empower you to consider what’s important to you, features you look for in a home and what actually matters. When you strip down your essentials to a concise checklist you enter pragmatic decision making, comparing what else might be on the market that may give you more wriggle room with your own mortgage. Conversely, it may encourage you to bunker down, making a long-term game plan regarding renovations and other future opportunities.
We’ve all experienced a holiday hangover but there is large uncertainty about the hangover of the mortgage-holiday. Avoid this uncertainty by getting in touch with one of our experienced team. 2020 has been an unprecedented year for many reasons but it doesn’t need to cause you more stress. Have the hard conversations now, understand the value of your assets and ensure you’re in a future position to actually pack those bags and go on the right kind of holiday when the time comes. For those looking to holiday from home, we know first-hand how desirable the Hibiscus Coast and North Shore is. We’re lucky enough to work in a little slice of New Zealand paradise and know many potential home-owners that would love to move here too. For a complimentary appraisal, a chat on the climate of the property market or simply to learn more, we are here and look forward to helping you with your property goals.