New Zealand Mortgage Brokers Can Help Overseas Buyers

Stuart FaceNew Zealand is a great country to live in and there are some great New Zealand mortgage brokers here for anyone shifting to our beautiful country.

A mortgage broker can be your trusted adviser providing introductions and connections to help you with the whole process of buying a home or an investment property in New Zealand.

Stuart Wills (that’s me) has worked as a mortgage broker in Auckland since 1997 and it is hard to imagine the number of first home buyers, property investors and overseas property buyers that have used our services to finance the property purchases.

Buying Property In New Zealand

If you are currently living outside on New Zealand but planning to emigrate or return to live here then you may wish to purchase your new home before returning. The advantage is you can lock in the price now and therefore budget more easily for when you arrive here.

Of course New Zealand has some great locations and this may be your major decision – where to live.

There are two major websites that list properties; Trade Me Property and my favorite Realestate.co.nz which has a great search function. Another website that is popular in the interest.co.nz website that has the current mortgage interest rates available from most of the banks and non-bank lenders here.

The house buying process is very easy here.

The process of purchasing a house in New Zealand is quite straightforward in comparison with many other countries.
When you have found a property you like, you then put in a written offer, usually through the real estate agent who has shown you through the property. In New Zealand, a verbal offer to purchase a property is not considered to be legally binding.

Your offer must be completed in writing using a Sales & Purchase Agreement, and is usually made conditional on factors such as mortgage finance, title searches and sometimes building reports or property valuation. When all the terms of the sale (including the purchase price, settlement and possession dates and any other conditions you may require) have been agreed to by the buyer and the seller, a contract will be signed.

Once the Sales & Purchase Agreement is signed and dated, you may be required to pay a deposit (usually 10% of the agreed purchase price) which your solicitor will hold for you. Sometimes this is not due until all of the conditions have been met.

This contract is legally binding, and therefore neither party can pull out of the transaction once it has been signed, unless one or more of the conditions of the contract are not able to be satisfied. For example, if your offer has been made conditional on you gaining mortgage finance, and you are unable to obtain that finance, you are entitled to withdraw from the contract on that basis.

Once all the conditions of the contract have been met to the satisfaction of both parties, the sale is then considered to be unconditional and is fully binding.

At this point, your deposit is normally released to the owner and will not be refunded should you fail to settle for any reason. There is also usually a clause in the contract for interest to be paid on the remainder of the purchase price if you are late to settle the balance of the purchase price on the due date and for any reason.

Understanding Property Investment In New Zealand

Property investment in New Zealand is really quite simple and is available for residents and non-residents; albeit there are some tax implications that you will need to consider. The great thing is you can still buy investment properties that produce enough rental income to cover a reasonable mortgage, plus cities like Auckland are seeing some significant price gains which add to the overall return that you may expect to receive.

There are some great books on property investment – the principals are the same all over the world.


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New Zealand mortgage brokers New Zealand Mortgage Brokers

Good New Zealand mortgage brokers will offer more help than just finding the best home loan, they will also be able to offer advice on all the facets of buying in New Zealand and help connect you with the other professionals that you will need.You can leave the financial issues to the New Zealand mortgage brokers who will know which bank will suit your situation the best.

Mortgage Link have offices throughout the country which makes them an ideal choice for finding a mortgage broker to work with.

I personally operate as a mortgage broker with Mortgage Link in Auckland and we have inquiries most weeks from buyers living outside of New Zealand. Some of those people are Kiwi’s living overseas, quite a few are people who are planning to shift to our country and then there are some who never have nor plan to live in New Zealand but who see the investment opportunity that we have here for property investors.

 

 

 

 

 

 

 

 

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Why Is Mortgage Protection Insurance So Important?

When you speak to your mortgage broker or bank about your home loan they invariably ask you about mortgage protection insurance – why?

mortgage protection insuranceIt is not just like McDonald’s asking if you want fries with that, it is simply because you have a mortgage which generally means you either don’t have the financial resources not to have a mortgage or you wish to leverage your capital for the maximum return.

Even if you think you are just being “sold” another product, you should take a few minutes to consider why the mortgage broker or bank choose to talk about mortgage cover rather than any other product.

The key thing is you have taken on an additional financial risk by having a mortgage and therefore the prudent thing is to consider all risks.

But There Is Minimal Risk

If things go to plan and nothing happens to you or your property then the risk may be minimal, but there is always some degree of financial risk when you have debt and are therefore committed to paying repayments to a bank or a non-bank lender.

Mortgage protection insurance is considered a very economical way of mitigating this financial risk.

Understanding The Risks With Property Ownership

When you went through the purchase process of your property, you may have already mitigated some risks by having a valuation done and by getting a building report you have secured a couple of key physical risk issues.

But are these the biggest risks?

After you have committed to the property and more importantly the mortgage, the question now changes to; what can take this property away from me?

Damage to the property from something like a fire, can affect the property value. You would insure the house against damage with house insurance, so you can repair or rebuild it and therefore restore the property value.

It is important to maintain the value in your property, as this is what the bank is relying on when they provide you a loan, but you also want to ensure that the value is maintained so that you have choices and can sell the property if you want or need to.

This leads into the next things you need to consider; the non-payment of the mortgage repayments which can happen due to a number of reasons which are unplanned, unexpected and are out of your control;

  • Loss of your job through a company restructure and therefore redundancy, meaning you do not have the money to make your mortgage repayments.
  • More seriously you are injured or ill and you cannot continue to work to earn an income.
  • You have an accident or illness that prevents you working at the same level and earning capacity as you do now – you are still working but earning less.
  • You have an illness or accident that prevents you working ever again.
  • You develop a terminal illness or pass away.

How Do We Manage These Risks?

Generally the simplest and most cost effective way to manage these risks is by putting in place an appropriate insurance cover to reduce or remove the financial burden in the event of a particular situation or event happening.

Mortgage Protection Insurance

This is generally called mortgage protection insurance.

It will include life cover, but we also have critical illness covers, income and mortgage repayment protection as well as permanent disablement which all fall under the umbrella of mortgage protection insurance.

This means should something happen to you and thus something affecting your ability to pay the mortgage repayments, there are a number of solutions to cover all of the points we mentioned above.

How A Mortgage Protection Insurance Plan Works

Let’s start with the list of events mentioned above;

Loss of job through redundancy; we can insure you for this for a maximum claim of 6 months and after any redundancy payment is applied. This does come with a caveat; you must have the cover in place for 6 months before you are able to claim a benefit and when you apply for the insurance you must not be aware of any restructure or layoffs at your place of work.

The first is the mortgage repayment insurance. This pays your mortgage repayments for you if you are unable to work due to sickness or accident. The insurance will continue to pay the mortgage repayments until you are either able to return to work or reach retirement at age 65 or 70.

The next is a traumatic condition or critical illness cover. This pays at a point where you are diagnosed with a critical illness or trauma rather than being dead or disabled. Claims on this cover are generally due to a major illness or health event which force a change in lifestyle, but may not mean you cannot work. Often the approach is to use trauma cover as a financial buffer to get through recovery and finance the change in lifestyle that may be required.

We then look at a total and permanent disability, or TPD as its known in the insurance industry. TPD is a cover that pays if you are disabled permanently and are never going to be able to return to work. There are two types of TPD cover; with own occupation cover, TPD will pay if you cannot return to the job you were in at claim time and any occupation cover will pay if you are unable to do any job you are suited to through training or experience. If you are going to have TPD cover, you want the own occupation version.

The final option is to insure yourself with life cover. Most people will consider cover for at least the value of the mortgage as this will give you or your estate the money required to clear the mortgage and retain your property if you were to pass away or become terminally ill. In normal circumstances, we recommend more than just the mortgage, as there are funeral and final expenses, credit cards and often short-term debt that need to be taken care of, but there may be other assets or funds available to take care of these and even some of the mortgage.

What Alternatives Are There?

The reason that most people have a mortgage is because they did not have the money to purchase the property outright. In this case you have borrowed the money required and have committed to making mortgage repayments until such time that the debt is repaid in full.

The best way to avoid the need for mortgage protection cover is to pay off the mortgage in full and the next best way is to ensure that the income that you earn is not reliant on you.

Paying off your mortgage faster does not mean there is no risk today; however it does mean that the risk declines more rapidly. In this case you still would require mortgage protection insurance, but as your mortgage is repaid the insurance cover can be reduced.

If you have a business or investment that creates passive income then mortgage repayment cover may not be required, or a lesser amount may be required. Rental properties do not generally require mortgage repayment cover as the rent continues to be paid regardless if you are able to work or not. It is also becoming increasingly popular for people to have a passive income from a home business or network marketing type venture and while in most cases the amount of passive income does not start off  as enough, with the right business and some focus on the business many people are able to build the level of passive income up which helps enable the repayment of the mortgage more quickly and reduces the need for mortgage repayment cover meaning those savings can also help pay the mortgage faster.

But I Already Have Income Cover

I have income protection and the mortgage repayment insurance sounds like income protection?

To a point, you are correct, it is very similar to income protection but it is cover for the mortgage payments. The major differences are; it is based on your mortgage repayments rather than your income.

There are advantages to having mortgage protection over normal income protection, the primary one being that mortgage cover will not generally be offset against any other income whereas other payments received could be offset against your income protection benefit.

Speak To An Insurance Adviser

Every situation is a little different and the information here is only intended to be of a general nature and should not be relied upon without obtaining full details of the insurance products available and a recommendation of appropriate cover cannot be made without an insurance adviser looking at your situation, your mortgage and understanding how you earn your income.

You want to ensure that you get the best mortgage cover at a reasonable cost.

Mortgage protection insurance is an option worth consideration.

 

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You Can Create Online Income Today

So, you want a home business that can create online income.

Some People Have Home Business Ideas

When some people begin to think about starting a business of their own, they know exactly what kind they are going to start, but with online businesses things can often be a little unclear – unless you are a computer wiz.

But get the right business model and things can get a bit CRAZY!

Plug In Profits

A good type of crazy…

Knowing that we want to have a business of our own is not enough. Many of us have struggled with the important question of what type of enterprise we would like to start – and the more you look, the more options there are.

A packaged business model might be easier when you decide to create online income.

Have You Thought About A Franchise?

Franchises generally offer a simple pre-packaged business, but the initial upfront cost of a franchise often makes it a prohibitive option.

For those who do not have a million dollars to buy a McDonalds franchise, we must look to other ideas for our own business.

There Are Endless Choices

There are literally hundreds of home business ideas for you to choose from.

These range from selling information on the internet as a infopreneur, to growing delicious gourmet mushrooms for sale to restaurants and catering companies; there is money to be made by filling a need, for these and a host of other necessary services.

Of course, actually liking what you do will have a lot to do with the success of any new venture.

Be sure to pick a home business that you’ll enjoy running, that will keep you motivated and also will make you money.

For example, if you’re a math whiz, an accounting or income tax service might be the ideal home business for you to start. Perhaps writing is your forte and you’d like to start your own home based copywriting service or advertising agency. Each of these businesses can be run successfully–and profitably from the comfort of your own home.

Academia might not be your cup of tea, but maybe you are good with your hands — having a creative genius where crafts are concerned. Craft items are red-hot sellers at swap meets, country fairs and world wide over the Internet, and they can provide you with solid profits. If crafts don’t interest you, then why not start a laundry service with pick-up and delivery, or a shopping service for shut-in’s–even a companion service or granny sitter or a doctor shuttle service; any of which, could be much in demand, in and around your neighborhood or community.

Brainstorming Can Give You Ideas

When brainstorming new ideas for your future home business, keep in mind the soul of any successful endeavor is providing a product or service that others will actually purchase in quantities.

Satisfy the needs of your target market, and your target market will keep you and your home based business healthy, happy and profitable.

Below are some suggestions for a home business;

Multi-level-marketing (mlm), floral/plant service for offices and hospitals, pooper-scooper service, dog walking service, answering service, vending machine service, gift basket service, homemade soap maker, mobile windshield repair service, mobile tire repair service, income tax specialist, researcher, freelance writer, business card and letterhead designer, courier, shut-in/shuttle service, landscaping service, tree
trimming service, wood crafter, carpenter, crafts and crafting supplies, pool cleaning service, plants/nursery starts, growing herbs, growing mushrooms, garage sale and swap meet vendor, proofreader, private investigator, typing service, interior decorator/designer, website design, wedding consultant, hot lunch/snack vendor at local courthouses, pet sitting service, pet grooming service, Internet entrepreneur, paralegal, gourmet catering service, new media production, mobile cosmetic technician, mobile nail technician, mobile hair stylist, aerobics instructor, personal fitness trainer, advertising consultant, companion service, small printing service.

Most of these do not easily work online, but there is almost always an angle that can be used to create online income from an offline business concept.

A Simple Business Concept

Hopefully the above ideas will give you some fresh ideas of your own to mull over but they may take a lot of effort and time to establish too.

When you work from home, you want a business that is east and quick to set up, but still has the potential to explode into a perpetual gold mine!


A simple business concept is always going to do better than a complex business and this is what makes the Plug In Profit website concept such a successful business model for those who want to create online income.

 

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How To Save A $100,000 House Deposit In 2015

We admit that saving for your first home is hard and now with a larger house deposit required it is harder than it was a few years ago, but it is still possible.

house depositIf you want to purchase a home for ‘say’ $500,000 then a 20% deposit is $100,000 and for the purposes of illustrating the point we want to show you how to put together a house deposit of this size within a year.

This might seem ridiculous, and we know it will not work for everyone but the ideas here should help everyone and should work for some while for others it may mean that it is 2-years or more before you have your house deposit.

As a mortgage broker I see people that have made home ownership a reality. Some of these people have had very little savings and quite low incomes when they started, but have taken every opportunity, dedicated themselves and got there!

Yes, it is going to be hard work saving your deposit but nobody is going to do anything about that … it is up to you.

Never believe it is impossible!

You Need A Goal And A Timeframe

When you are buying your first home you need a goal and a timeframe.

For the purposes of this example we are using the goal of buying a $500,000 home, and therefore the target for our house deposit is 20% of that which is $100,000.

We have used a timeframe of 1-year.

You must have a timeframe otherwise you can drift along and never have any urgency. With house prices rising in cities like Auckland you really do need urgency, otherwise you are just making it harder for yourself.

Of course the big question is “how” so you need a plan.

Creating Your Plan

We know that for anyone to save $100,000 it is going to be hard and many people will think impossible!

When we create a plan we are therefore not suggesting that you save ‘x’ amount into a bank account each week. If you use the Sorted savings calculator you will work out with a bank savings interest rate of 4% you would need to save $1,886 per week which for most people is unrealistic from their current income and living situation.

So we need to think of ways to cut expenses and save more.

Your plan needs to be written down, monitored and you need to stick at it but the first thing to do is to get a starting point.

Let’s look at the steps;

  1. Create a statement of position
    1. Review your assets
    2. Review your liabilities
    3. Open a savings account
  2. Create a budget
    1. Review your expenses
    2. Review your income

You need to be looking at all of these areas in detail.

Your Statement Of Position

A statement of position is a list of all of your assets and liabilities.

People today tend to have a lot of “stuff” and quite a bit of it is unnecessary when you get down to it. If you take a hard look at your stuff you will no doubt find things that you no longer use or can do without, so identify this and put it on Trade Me and get rid of it.

Can you live with just one car, or without a car at all? Cars are expensive to buy and to run so consider carefully what you could do.

Do you really need a television? You might think so, but what is more important – a television or a house?

How many clothes do you really need? Most people have their favourites that they wear a lot, and other stuff that sits there and may not even fit any longer.

Then there are the debts.

If you are serious about saving for a house deposit then you do not want to be paying off debt on a Farmers card or have a car financed.

It is easy to get into debt and hard to get out of debt, but the golden rule is never borrow money for things that decline in value or have a short life like computers, televisions and vehicles.

Create A Budget

Have you ever done a budget before?

More importantly, did it work?

In our experience budgets rarely work as people forget to include those “unexpected” expenses that crop up from time to time like the dentist, new tyres or travel to a funeral. These expenses do happen and need to be allowed for.

There is some great budgeting software that we suggest called PocketSmith.

Open You Savings Account

I would suggest that you open a savings account with a different bank that which you use for your everyday banking as this way you are less likely to touch the money.

Don’t worry too much about who offers the best interest rates as this should only be a short-term project.

What Have You Found So Far?

Most people will find two things;

  • There are quite a few things that they could live without.
  • They are spending everything that they earn.

This is quite normal and while not ideal what we now have is something to work with.

The first thing to do is to sell the things you have identified as not being required. The easiest place to sell these is on Trade Me and you might raise ‘say’ $5000 from the sales which can go straight into your new savings account.

Straight away that changes how much you need to be saving each week by about $100.

But it is still a huge weekly target!

When you took a hard look at your budget I am sure you found some savings too.

Most people will be able to shave $200 – $300 per week or more from their expenses if they are serious and this reduces the weekly savings target to closer to $1,500 per week.

Where Can I Find $1,500 Every Week?

So how can you find $1,500 more every week to save your house deposit?

Increase what you earn – some people have jobs where they are able to increase their earnings by either getting a promotion, a pay increase, by reaching targets that trigger bonuses or by earning higher commissions. Any of these will generally require extra effort on your part, but the results can make it well worthwhile – but probably this alone will not increase your earnings by $1,500 a week.

Get a 2nd job – when you are focused on saving getting a 2nd job might seem the logical option as you can earn extra money and by working longer hours you have less time to spend money. The amount you are able to earn will vary depending on what work is available and the pay they are offering; however assuming you are paid ‘say’ $20 per hour for 15-hours a week that gives you $300 extra per week before tax. This is a help, but alone will not mean you make enough.

Start a business from home – plenty of people operate a business from home in addition to their main job. There are plenty of ways to make money with a business at home from buying and selling stuff on Trade Me or e-Bay, a range of network marketing companies offer business packages and there are options with online businesses to make money too.

The aim is to work on these all.

If you are paid by someone else then you should be talking to them about what you do and see if there are opportunities to do more and be paid more.

If you have evenings or weekends free you could look at what part-time jobs are available.

And a lot of people are doing some home based business.

About Home Based Businesses

The internet has changed the way a home based business operates and has provided a lot more choice so you can find something to suit you.

It is no longer a matter of selling Amway to all of your family!

Let’s look at the 3-types of business models mentioned;

Selling Online

Selling products online can be quite lucrative if you find something that is popular and you have a good margin between the price you purchase for and the price you sell for. Most people will buy the products in bulk and then sell them at a margin, the difference after selling costs is your profit.

Others are using a process known as drop-shipping where you sell a product first and then purchase from a wholesaler and have the products delivered directly to the buyer. This means you have less risk and cost as you only purchase product after it has been sold and paid for.

In New Zealand we have Trade Me and in other places there is e-Bay.

Both of these platforms are similar in the way you can sell stuff and pay a commission once the product sells which helps manage your costs so that you know what your profit will be on each sale.

Quite a few New Zealander’s are now selling online at e-Bay in the United States using drop-shipping and when done properly they are making a very good income (often more than $1,500 per week) for doing a few hours a day with the time difference making it easier to manage.

Network Marketing

Some people get turned off by the mention of ‘network marketing’ as they think of this as selling Amway or some pyramid scheme; however the reality is this is a business model that is perfect for online businesses and home based businesses.

The fact is that you introduce some people to the business and then those people introduce people to the business and so on and so on … until you build a network of people. Assuming the product is good and priced okay this can be an easy concept to sell and with online business becoming more popular this model is being used more now and you can build a network anywhere with people that you have never even met.

Generally you will not make much money in the first few months, but once it starts building you get a good steady passive income which helps when you are saving your deposit, but also helps you pay your mortgage off faster.

The Online Businesses

The most popular online business is to create a website or blog linked to a business opportunity.

One of the most popular is Plug-In-Profits which was set up by Stone Evans.

The concept is to be provided a free website with five income opportunities linked to it. People can then either get their own free website, join one of the income opportunities or get a free website and join all five opportunities.

Assuming you have joined the businesses, you get paid each time someone joins the business via your website and like network marketing you can earn money from your website and your down lines websites too.


When you join you are supplied full training which makes is quite easy.

READ A REVIEW – CLICK HERE 

Again, this business can be operated from anywhere with an internet connection and the sales process is fully automated so you can have the site making money from five different businesses while you sleep.

It Will Not Be Easy!

Let’s not pretend that it will be easy.

If you want to save a decent sized house deposit it is going to be hard work and you are going to have to do more than most people would, and maybe try something a little unconventional.

You also need to remain dedicated.

There is no guarantees in life – no guarantees that you will still have a job, no guarantees that expenses won’t jump up, no guarantees that any home business will make money – no guarantees at all!

In 12-months you will know whether what you have done has worked, but I can assure you that if you take action on some of these ideas you will have a better chance of success than if you do nothing.

Speak To A Mortgage Broker – Not A Banker

Many people will approach the bank and apply for their first home loan without really knowing if they are ready or not. You are better to speak with a mortgage broker who can tell you if any bank will offer you a home loan now, or what you need to do to prepare better.

A mortgage broker also has options, so if one bank says ‘no’ another might say ‘yes’ and most brokers will have access to a range of bank and non-bank lenders which gives them a better chance of getting the ‘yes’ that you want.

You mission if you choose to accept it is to save a house deposit – starting today!

 

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Prostitution Is Another Way For Ladies To Make Money

Prostitution Has Always Been Popular

Ladies have been selling sex since time began and still prostitution is popular as a profession for women and provides service for men.

It is a way for ladies to make money in an industry where demand exceeds supply, but socially it is deemed unacceptable by many.

Many sex workers have never told their families what they do to earn money, but is selling your body any different than selling other services? Maybe a lady should be able to work as a prostitute without the stigma attached and therefore discuss her work at the family dinner in the same way as others do.

It might be a lot more interesting!

This video provides an interesting perspective into the world of the sex workers and asks what harm there is.


Prostitution Whats the Harm HD by limoslight

Actor Hugh Grant has a prostitution arrest for being on the receiving end of oral services offered by Divine Brown who became famous after this. In June of 1993, Heidi Fleiss was arrested at her Benedict Canyon home accused of running a high-priced call girl service catering to rich and famous clients. The most high-profile client identified in court proceedings was actor Charlie Sheen, who testified to paying Fleiss $50,000 for escorts who charged up to $2500.00 a night and other names like Jack Nicholson, Billy Idol and Mick Jagger were connected by the tabloids.

Let’s also take a look at the world of prostitution.

Prostitution Is PopularOther Names For Prostitution

Prostitution is popular and defined as “the act or practice of engaging in sex acts for hire.”

A prostitute is generally thought of as a women, but there are male and transgender prostitutes too.

People refer to a prostitute by many names including; call girls, hostesses, working girls, hookers, escorts, a mistress, ladies of the night, tramp, slut, whore, streetwalker, sex worker and various others.

The bible says the men go whoring but the women are or course blamed – nothing has really changed as today as publically people frown at the concept of ladies selling their bodies, but some ladies will sleep with anyone for a promotion or to secure a deal and of course men hire prostitutes.

You Find Prostitution In The Bible

There are many references to prostitutes within the bible.

Gomer was the prostitute Hosea married when god told him to pick a whore for a wife [Hosea 1] and there are references to male prostitutes in the temple [1 Kings 14:24]. There have been prostitutes throughout history and as the Bible covers a wide scope of history it would be a bit weird if prostitutes were never mentioned.

Is prostitution is a taboo topic that we should pretend did not exist?

Maybe some people think so, but it does exist and many people that read this will have either paid a prostitute for sex, be considering paying a prostitute for sex or may be or have been a prostitute themselves.

There is no question that prostitution is popular.

Mature ProstitueWhy Prostitution Is Popular

Firstly, for a guy being able to pay a lady for sex is simple.

You pay a lady for sex and get exactly what you want without the emotional baggage that you would normally get when you are provided sex for free.

As well as treating a man well and performing oral and straight sex, often a prostitute will offer extra’s that appeal to men. These can be sex acts that a girlfriend or wife might not offer or which they think of as being disgusting or for weirdo’s.

Men are not always looking for those young attractive ladies either and today we are seeing a lot of more mature and refined ladies working in the sex industry and offering a range of options to men from the very sensual and loving sessions to sessions for those men wanting various kinks.

Private escorts in New Zealand tend to offer more variety than you would get in many of the brothels with many of the private ladies offering services without condoms, anal (Greek) and rimming, BDSM, multiple guys, lesbian shows or 2-girl sessions, watersports (pissing) or even scat (shitting) for you or on you.

They may even wear a strap-on and fuck your arse.

Would you ask your wife to piss over you?

What Is The Future

We have discussed the present and past, but what about the future?

Will ladies continue to offer sex for money, and will men still be willing to pay. Of course the answer to these questions is almost certainly still going to be “yes” but maybe like other industries technology will be introduced to help and not just like the adult websites on internet to help “sell” sex.

In the future researchers say brothels will have robot prostitutes offering clean, guilt-free sex. The prediction was made in a research paper examining what the sex industry will be like in the year 2050.

Even though it may be a robot that provides the act of sex, the fact remains that prostitution is popular.

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Four Good Reasons for Mortgage Refinance

Many people will consider a mortgage refinance, but then it all seems too hard with changing banks, getting new eftpos cards and changing all of the automatic payments and bill payments – is it really worth it?

Mortgage Refinance

Home owners are being marketed too by the banks and given incentives to change banks, but as mortgage brokers we often see refinancing that has been done for the wrong reasons.

Your bank is really just a product supplier, supplying you the finance that you required when you purchased your home.

All of the banks have money available, and you therefore have the choice of banks and the non-bank lenders who all have the same money, just packaged slightly differently.

What Are The Differences?

Interest rates – the first thing that most people look at with any home loan is the interest rate being offered by the bank. The banks are quite competitive on mortgage interest rates so be aware that what rates are advertised are not always the best rates they can offer. Speak to your mortgage broker and they will let you know if the rates are okay, or they may be able to negotiate better rates.

Split mortgages are better – this means you can split your fixed loans over different terms so they never come off a fixed rate at the same time. This protects you against any interest rate increases.

Revolving credit accounts can be used as part of the overall home loan and when set up correctly can be a great account to help repay your mortgage more quickly and to give you control over your finances.

Other Bank Products & Fees

You will see that the banks are making record profits and some of those profits come from the various bank fees charged.

Often with a home loan the banks will try to “sell” you other banking products and while the bank staff may seem helpful, they are really trying to sell more products as this way the bank makes more money.

Bank Fees – most bank accounts attract fees, so be careful how many accounts you have and try to minimise the fees you are charged.

Overdrafts – banks will offer you an overdraft when it is really not needed. Overdrafts generally attract fees and there is a tendency to use the overdraft which means you will be paying interest too, which can be quite high – typically around 12%

Credit Cards – while credit cards can be useful, if you are not good at managing money they should be avoided as the fees and interest is very high. Most standard credit cards charge interest of close to 20% and with minimum  repayments it can take years to wipe out credit card debt.

Insurance – banks offer insurance, but generally only have one option to offer you. You would be better advised to seek to an insurance adviser who has knowledge and options available for you. Getting insurance should not be about the ease of the application, but about providing peace of mind and a good claims experience. Mortgage Protection Insurance is important to get right.

KiwiSaver – banks love “selling” KiwiSaver and it forms a very cheap way for the banks to get deposits too! For most people KiwiSaver is going to form a large portion of their retirement income and so the better this investment is, the better lifestyle they can expect in retirement. So it is important not to be “sold” a bank product when there are better products available. CLICK HERE to see how much you really know about KiwiSaver.

Four Good Reasons for Mortgage RefinanceFour Good Reasons

Here are four good reasons that a mortgage refinance might be a worthwhile consideration.

1. Lower Your Repayments

Simply changing your home loan to a lower interest rate will reduce your mortgage payments. But you may additionally be in a position to lower your payment by changing from one sort of loan to a different type of loan.

The key is to take advantage of lower repayments by applying the savings to debt reduction.

2. Retaining A Good Mortgage Rate

People will often use fixed term mortgages to ensure that they have some certainty regarding their mortgage repayments; however as the fixed terms are coming to the end of the term there is always a degree of uncertainty and it can be quite nerve-racking.

Sometimes you might restructure or refinance your mortgage midway through a fixed term and therefore extend the fixed term period to provide more certainty.

3. Require Extra Cash

You can get additional funds by doing a cash-out refinancing, where you’ll be able to draw on your home’s equity by borrowing more than you currently owe.

This additional money may be to complete renovations, to invest in a business (which increases your income), refinance some other debt (which reduces your expenses) or purely for a lifestyle purchase like a new car, a boat or a holiday.


Renovations should increase the value of your home, but you need to always carefully plan and budget for these as costs can easily end up higher than you first think. You also need to consider what the additional repayments will cost and make sure you are comfortable with those increases.

Investing in business seems logical if the additional income exceeds the additional repayments. The purpose of having a business is to make money, so generally this is a good reason to borrow more money. If you are borrowing to fund business or a home business purchase like an online business or purchasing and selling products on e-Bay or Trade Me, then you should keep the business loan separate to your home loan.

Refinancing other more expensive debt is always a good idea. To make the most of any debt consolidation you should aim to pay more than the minimum to ensure you pay off your home loan sooner. This is especially important if you are consolidating debt for things like cars etc that will have to be replaced in just a few years.

Purchasing a new car, boat or paying for a holiday may seem like a good idea too but this is really spending for a better lifestyle and borrowing to fund a lifestyle will cost you more in the long-run.

4. Making Debt Manageable

Sometimes in life we go through a period when our household income reduces or we have had an increase in expenses and we find that the burden of debt is getting on top of us. We therefore need to reevaluate and see if there is a way to restructure the debt so that it relieves some of the financial pressure, and it is better to do this as soon as you identify this as an issue and importantly before you start defaulting on any repayments.

If you’ve got enough equity in your home to refinance your other debts then this can often work to your advantage.

Debt consolidation can reduce your total repayments as the home loan interest rates should be a lot less than the  debts that you are refinancing. This makes the repayments a lot easier to manage.

Should You Refinance Your Mortgage?

There is no answer that fits all situations and it’s important to define your wants and your goals before refinancing your mortgage.

A mortgage broker can certainly help you decide if a mortgage refinance to another bank is the right thing to do, or if you are better to renegotiate with your existing bank. Often a broker can structure a deal with a bank that they would not offer you directly, and most brokers are paid by the banks so you can get this advise and help for free.

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Make Your Business Profit In 2015

The end of this year is almost upon us and we therefore do not have much time left to increase our business profit; however we have the opportunity over the Christmas break to recharge the batteries and plan for the year ahead.

Let’s Make 2015 A Great Year!Make Your Business Profit In 2015

The New Zealand economy has recovered quite well from the Global Financial Crisis that has plagued the world economies. While many economies are still struggling we are told that things are improving here, but not everyone is seeing a benefit yet.

Maybe 2015 will be a better year, but with a little planning and direction it could be a great year!

If you don’t take the opportunity then someone else will.

So get prepared now so you can rip into 2015 and focus on banking the business profit that is sitting there for the taking.

Albert Einstein once said the definition of insanity is doing the same thing over and over again and expecting different results.

So why do so many business owners continue doing the same thing?

The Four Areas To Focus On In Your Business

I believe there are four areas of focus for most small businesses, and if you can get these four areas right then it would be hard not to increase your earnings.

1: Look After Your Existing Clients

We are not talking about marketing or selling more “stuff” or services to your existing clients, rather making sure that you’re serving your existing clients to the best you can and exceeding what they would expect.

Looking after your existing clients means you’re keeping them extremely happy, which changes them into advocates for your business. This means as well as securing their business, you will be more likely to have them refer their friends, family and associated to you.

Repeat business and referrals are two of the most powerful sources of business growth and therefore business profits.

2: Focus On Immediate Sales

Getting new clients is crucial to business growth.

The key is you must have the ability to create new and immediate business to really grow your business. We often fool ourselves into thinking that the work we do does not need to create immediate sales and that the sales will come (and often they do if your product or service is good) over time if we keep chipping away.

The problem is that a long sales process is hard to fund – you have expenses to cover and you can easily work for weeks or months and then still miss out on the sale.  Have a look at your business model and see if there is a small product or service that you can “sell” immediately to help fund the cost of your time which also reduces the heartache should a sale not proceed.

3: Have A Long-Term Strategy Or Plan

Whilst it’s very important to make sales quickly, it’s also important to have long term strategy or plan.

When you have a long-term strategy or plan it gives your business a map and something to refer back to as you make business decisions. Any plan can be as simple as a 1-page document or a 20+ page document that goes into detail on how you plan to deliver your product or service to the marketplace. You plan will vary depending on your product or service and what your unique point of difference is.

Banks provide home loans and most customers think that all home loans are roughly the same. So when Resimac Home Loans came into the New Zealand market they needed to do things differently, so they choose to only offer their home loans through mortgage brokers and created some specialist home loans that help people that do not meet bank criteria such as low doc lending for self employed who can demonstrate but cannot prove their income, home loans for people with credit impairment and low deposit home loans.

They are not competing with the banks, but offer a clear point of difference.

The best plans are simple, have a clear vision and have some easy measures so you can track your progress and successes.

It is important to have a long term vision and plan for your business.

4: Adapt To A Profitable Business Model

BusinessThis is crucial, if your business model (how you make money) is not profitable then focusing on business growth may have a negative impact on your business profit and cashflow. Too often we see business coaches, mentors and even accountants that put the focus on acquiring new clients and increasing sales without identifying first if the business model you have is going to benefit from more sales, or if there are other factors that should be addressed first.

The key word we use here is “adapt”.

Most businesses have a reasonable business model, otherwise they would never have been able to survive; however the markets we do business in have changed and therefore we should be changing and constantly tweaking our businesses to ensure that they can operate to the full potential and reap us the rewards that we deserve.

Increasing profit is not all about increasing prices.

Have a look at the product or services that you offer and see if there is a complementary product or service that you can offer too. A little like the McDonald’s “would you like chips or a drink with that” or can I “up-size you” there may be something that you can offer.

As a mortgage broker I get to talk to people about their money, and recently we made a decision to offer KiwiSaver as we saw how many people the banks had signed over, and the banks do not offer a great product. Just by talking about KiwiSaver and giving people a basic overview and understanding of how it really works we have been signing up a few people each week.

We know by spending an extra 10-minutes we are helping our clients financially and the extra commission earned helps increase our business profit too. 

Look at your business competitors, the other successful businesses and even some of the smaller or home businesses and see if you can get some ideas from them. Large business and franchise operations are always worth looking at, some online businesses have great free ideas and up to date training and network meetings are a good place to meet other business owners who want to tell you about their businesses.

Do You Want Increased Business Profit?

business profitsI’m sure you do.

We are in business for a variety of reasons, but one of those reasons surely must be to make a profit.

What you do with that profit is then up to you, but at least by producing a good level of profits you have the choices – you could take some money out of the business for yourself and your family, you could reinvest into the business or invest in some other business or assets, you could reward your staff or you can give money away.

The main thing is to start by generating a bigger business profit.

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Your New Auckland Council Valuation Might Help

Your New Auckland Council Valuation Is Done

The rateable value for your house is set by the local authority for the purpose of determining and allocating rates. It is calculated every few years based on the general value of houses in the area and some key housing statistics and is used by the Auckland Council to set the rates you pay for the privilege of owning a house.

The new Auckland Council valuations have just been updated and were due out on Monday 10th November.

Council ValuationUnfortunately the Auckland Council website could not handle the amount of enquiry and crashed so people have been unable to check what the new values are. The Auckland Council has said they will now be posting these new valuations out so with the “efficiency” of the Auckland Council and NZ Post we should see these values before Christmas – seriously we should see them this week!

Does your property’s new rating valuation accurately reflect its current market value?

This is always going to be controversial – everyone has a different opinion.

A homeowner and a buyer will no doubt have different ideas on the value of a property, and even real estate agents find it hard to agree.

There is nothing new in this!

How Accurate Are The New Council’s Valuations?

The council valuation of a property is a good rough-guide of value but can be completely inaccurate and therefore at times seems irrelevant.

The rateable value doesn’t usually take into account anything that makes a property better or worse than others in the area meaning that often the rateable value of the worst house can overstate the value, where the rateable value of the best house in an area can be lower than the true market value.

The best way to get a true market value is to engage a registered valuer who will inspect your individual property, measure and assess the property before comparing sales of similar properties to establish the market value of your property.

Why Should This Matter To You?

Some people are happy to receive a lower valuation as this would suggest that your rates may be lower too; however if you plan to sell your house within the next 3-years you may find that potential buyers assume that your house is worth less than other similar properties and therefore the price you end up being paid may be lower.

Banks also take notice of your council valuation and mortgage brokers can often use this to show the equity that you have in your property which helps when negotiating better interest rates for you. Stuart Wills says that we all like to think that we have value in our homes, but there are some valid reasons to want an accurate valuation.

Auckland Council Can Often Get Values Wrong Too

council ratesA rateable value is the council valuation and these can seem wrong, especially when a house has been very recently renovated, or when a property is unusual. Home owners can choose to get their house’s rateable value re-assessed by the local council if they feel that it is incorrect (too high or too low).

If you think that your engage a registered valuer who will provide a written report with an assessment of the market value of your property. There is a limited in which you can make an objection should you believe your valuation is wrong.

You only have until 19th December to object.

Opportunities With New Valuations & LVR Rules

If you had a mortgage that was close to or over 80% of the property value that the bank have then you are unlikely to be getting the best interest rates that the banks are offering.

In addition many banks have not allowed you to top-up your mortgage and instead have provided personal loans or vehicle finance where they can charge you higher interest rates. Having a new and higher property value may provide the opportunity to consolidate any of that more expensive debt.

There has been talk recently that the LVR restrictions may be relaxed or even lifted totally; however this is still speculation and no detail is available yet – it may be announced this week so we will update you when something is announced by The Reserve Bank.

Saving Money On Your Home Loan

We all like to save money and to own our own homes.

It doesn’t really matter who you are, what income you earn or what your employment is, even laborers, taxi drivers, private escorts, accountants, solicitors and priests understand the value of money and get frustrated when they see the banks continue to announce record profits while they are being charged more than needed by their banks.

Banks are money making machines and you should always try to minimise what you pay with interest and fees.

You Should Speak To Your Mortgage Broker

If you have any questions or feel that you may be able to improve the way your debt is structured and the interest rates you are being charged then you should speak to your mortgage broker who can provide answers to most questions regarding the new values and your current mortgage structure.

Many of the better mortgage brokers like those at Mortgage Link can show you how to take advantage of the higher values and pay your mortgage off faster or use the increased equity to buy an investment property which over time will increase your wealth.

Why not speak to your bank?

A mortgage broker will look at the best options for you and knows what all of the banks can offer, so should have better power to negotiate with your bank. As a mortgage broker Stuart Wills has often been able to have the banks reduce the interest rates purely due to the knowledge of the various banks offers and his persistence at making the banks offer true value.

Don’t settle for what your bank offers without asking for a second opinion from a mortgage broker.

CLICK HERE to check your new Auckland Council valuation.

 

 

 

 

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Passive Income Negates The Need For Mortgage Cover

Does Passive Income Negate The Need For Mortgage Cover?

Firstly you need to understand the reason people have mortgage cover – to ensure that the mortgage commitments are met while you (the insured) is unable to meet those commitments. This could be due to your inability to earn income from either a disability or death.

Does Everyone Need Mortgage Protection Insurance?

The simple answer is “NO”

You need to ensure that the income you generate does not need your personal exertion.

That is passive revenue or income.

As mentioned above, the reason that you would have mortgage cover is to ensure that you can make your mortgage repayments if your income stops so having an income that continues when you are unable to work means your income does not stop when you do – perfect!

How Much Income Do I Need?passive income allows time

This of course differs for everyone, but the ideal is to replace your existing income from your “job” with passive income.

Having a true passive income means that you are paid every day, week or month without having to do any work to create the income and this means that you have more time on your hands, so often people that live totally off a passive income want more money as they have more time on their hands and therefore like to spend more money too.

How To Create A Passive Income

I think most of us would like to have a passive income – but it takes work, planning and/or some luck to create a passive income.

Here are a few ways to create a passive income;

Investment – if you have a lump-sum money to invest then with prudent investment you can create a passive income. If you invested ‘say’ $500,000 in a portfolio that gave a return of 5% then you would earn $25,000 per year but you should then allow for tax and inflation.

The advantage of investing a lump-sum is that you get an immediate return on the investment, but the disadvantage is most of us do not have a large sum of money to invest. Imagine how much you would need to invest if you wanted a passive income of $100,000 per year; that is an investment of $2-million.

Property – people love to buy property as an investment and most wealthy people have a property portfolio. You can get started by leveraging off your home and borrowing the money to buy your first investment property, but it takes quite a few years before the portfolio is actually producing an income for you as most often you need to either wait for rents to increase and/or the loan costs to decrease.

Large Business – some larger businesses do not require your input on a daily basis as you can have staff run the business operations; however they do cost a lot of time and money to establish.

The fact that a business is “large” generally means everything about them is large including the initial investment, the cashflow the business requires, the staffing for the business and this all leads to a larger risk of things going wrong. So while some large businesses seem to run without the business owners direct input, most businesses will be more successful with the business owner at the helm.

Small Business – there are some small business models that can create a passive income for the business owner. Most often these require you to forgo some income upfront and spread the income over the useful life of the product of service. An example might be website creation and hosting; whereby instead of a large upfront cost for the work undertaken you may choose to receive a lesser upfront payment and spread the payment over ‘say 5-years with hosting continuing for the life of the website, or at least while your hosting offer remains competitive.

To successfully create a passive income you need to structure your small business so that a lot of the work that generates the income can either be done by staff, be out sourced or automated.

Network Marketing – this is a small business model where you dedicate yourself to creating a network of people that see the opportunity to create a passive income from a home business and then help them get their own networks. You get paid for your own sales and share in the profits of your network so that once established you receive an ever-increasing passive income as your network grows. This type of business model was made unpopular by companies such as Amway where they encouraged people to recruit their friends and family into a business that sold overpriced products.

The internet has seen network marketing rebuild itself and now their some very good opportunities to get involved in businesses that offer a low cost start-up and good potential for creating online income from offering value driven products and leveraging off the size and power of the internet instead of having to recruit family and friends.

These online businesses make the perfect home business and one that has become popular is the Plug-In-Profit concept. With this you get a fully set up and free website which links with five global internet businesses based on the networking marketing model and

Read this review – Bernard earned $310 in the last 72 hours after following your step by step instructions. Not a large income, but he is just getting started too.

Everyone should consider how they can reduce the reliance on them having to get up and go to work each day, and therefore how to protect their income.

This post just touches on the main ways to create a passive income.

 

 

 

 

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Do Something For Yourself This Christmas, Start An Online Buisness

start an online businessWhy You Should Start An Online Business?

Can you start an online business?

Every year more and more people are turning to the internet to research and buy products, for social interaction and of course to do business. You can either sit back and let others start an online business and make all the money, or you can do something about it today.

Or, you can click off this page and go and read about someone who has done something that you thought was just a result of “good luck.”

Become Your Own Boss

You can start your own business and be your own boss.

Most people will try to start off small and as their business grows they will decide when is appropriate to leave the full-time salaried employment to venture out on their own, but with the right online business this can be a reality instead of just a dream.

Best Home Business Reviews

BEST HOME BUSINESS REVIEWS WEBSITE

It Is Easy To Start An Online Business

People often say they do not know enough about computers and stuff, but the reality is this is just an excuse and a “valid” reason to procrastinate. So many of the online business opportunities today are designed for people with minimal computer skills and they come packed with training to ensure that you do succeed.

Many of the business models are structured on a network marketing concept where everyone shares a little bit in what others do, and therefore it is in everyone’s interests to ensure that you and everyone else within the business makes money – and stays in the business – and tells others about the business opportunity too.

 

What Sort Of Business Should I Start?

This is a very hard question to answer as everyone has different circumstances.

You need to ask yourself how much time you are prepared to invest, how much money are you prepared to invest and how much you want to earn.

If you are planning to have a secondary income but don’t want to invest too much, then you can start an online business that would produce you a nice income for very little cost.

The banner below provides a business model with five separate incomes.


 

What’s An Automated Business?

An online business can be automated by linking into clever software which drives the whole sales and marketing process on autopilot.

The key thing to remember though is if you have something to sell then you need to attract customers and that is either going to take time or money.

Time – with online business models using websites, you can spend a few hours a week looking to attract customers but posting on social media, doing blog posts and forum posts and placing free ads on the various sites.

Money – if you want faster results with less time being spent on marketing then there are plenty of ways to generate customers from paid advertising and marketing strategies.

An automated business will require some investment until you have built it up to the level that you want. Most online marketers suggest that you have a “start-up budget” and then you allocate a percentage of your profits each month into marketing and growing your business.

Get Started Today!

There is no better time to get started.

You really can start an online business today.

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