Mortgage Brokers in Small Towns

Small Town New Zealand generally has much lower priced houses than for the larger centres and a much lower turnover of housing stock. This means that there are fewer people purchasing houses, and the purchase price is generally a lot less than for the large symptoms.

Rachel Russell, Tauranga mortgage broker (link)

The problem for house buying clients is that many will still be a mortgage broker for various reasons, not the least being that the client may not want to talk to their local bank or may want to make certain that they are getting the best deal on the market. In the small towns however a local mortgage broker is a rare breed, simply because there is just not enough commission available to make a mortgage broking career worthwhile. Any mortgage brokers in small towns almost always have other jobs, including real estate agent and other related work. They may be fairly well known in the community, but this can be a disadvantage as well as an advantage, simply because their clients may know them and may not want them to know about their buying intentions for any number of personal or business reasons. This further restricts the client base for the small town mortgage broker.

Fortunately for the mortgage broking sector modern communications mean that the broker does not have to be in the same town or city as their client. A long list of mortgage brokers can be found very easily by a simple search on the Internet, and the first meeting can be simply a Skype call. This means that a small town mortgage broker can expand their market dramatically to cover all of New Zealand, but it also means that big city mortgage brokers can jump to the front of any Google search list in the local town and elbow the small town mortgage broker out of the way. This is actually the most likely scenario, because unfortunately most people searching for any service or product in the Internet will be naturally drawn to the companies that pop up first in Google search.

Small town mortgage brokers trying to pick up business in big cities can find that their website is simply invisible because of the Google search rankings, and they will need to have other more traditional marketing approaches to ensure they have enough business. This can include networking with real estate agents up and down the country, attending property seminars and home shows and advertising in the more traditional media. This can be hard and expensive work, as the large mortgage broking companies that occupy the top spot for Google search are very hard to dislodge.

Mortgages for Farmers

Farming requires a very specialist type of financing, as the business of farming is complex and carries a lot of risk that can be hidden below the surface. Mortgage brokers Bay of Plenty for this type of work need to have specialist knowledge about farming, or at least need to have access to trusted specialist knowledge.

Any farmer who is purchasing a farm will find themselves having to jump through a lot of hoops to convince the financier that they will be able to make the farm work financially, and the mortgage broker has a vital role to play in this process. A farmer may purchase a farm and then proceed to run it in the same way as the previous owner did, in which case the business case for the purchase will need to show that the previous owner ran a successful financial business, and the new owner has a high likelihood of repeating the success.

Often in some parts of New Zealand a farmer will purchase a farm such as a sheep farm, and then re-purpose it for much more lucrative dairy farming operations. The original farm may have cost $10,000,000 to purchase, but then the farmer will have to build races for the stock, appropriate fencing so that the stock can be rotated through the phone, watering facilities such as troughs and piping and irrigation and of course the very expensive cowshed.

A modern rotary cowshed can easily cost 1 million dollars, and all this work needs to be completed and financed before the farmer is even able to put one dairy cow onto the farm. A typical dairy conversion of this magnitude might require a herd of 1000 or 2000 cows, and this is also going to cost a few more million dollars.

Obviously the mortgage brokers in Northland are going to need to have a high degree of confidence that the farmer wanting to purchase and develop the farm is fully capable of turning it into a successful business. To get this confidence the broker is going to need to gain a detailed understanding of the previous experience of the farmer, and also a detailed understanding of the market for the dairy products and of the fundamental cost basis of the developed farm.

Dairy farming has enormous daily, weekly and monthly costs, but also has enormous revenues. The risk for any financier is that the financial margin could change to negative very quickly if external macro effects are large enough, such as an overnight drop in the international price of milk powder and other products. The farmer will want his mortgage broker to make sure that the financing for his farm purchase and operations is able to cope with the ebbs and flows of the International Market and the subsequent impact on pricing and revenues. Farming and the financing of farming is generally a high stress business.

Financing The Rocket Industry: Why Mortgage Brokers Are So Important

The most common traditional view of a mortgage broker says the person that provides finance to somebody who is purchasing a building some new property. However mortgage brokers are required across a number of industries, and one interesting industry that’s developing in New Zealand is the space industry.

The one rocket company that is getting ready to start delivering small satellites to orbit at the rate of about 1 or 2 launchers per week has very complicated financing arrangements, and the mortgage broker or financial advisor that has managed to set up these arrangements deserves to be applauded.

The rocket company, has been in startup mode for a number of years and has required venture capital as they have a large number of Highly qualified staff to pay and they have a lot of expenses in terms of sophisticated equipment purchase and materials purchase. However now that they are about to go live they are going to be able to change their lending and access debt funding and possibly even equity funding.

The debt funding they access will look a bit like an old-fashioned mortgage, but the interesting aspect of this funding is that the revenue per flight is extremely high and more than covers all the costs of building the rocket. The mortgage brokers in Southland needed to have a good understanding of the Rocket Industry around the world, and where the demand for small satellite launching was going to come from and what the overall trends are the growth of the market. The mortgage broker also needed to have good ties to very deep pocketed investors who were able to lend the company enough funds to do all the work up front.

The fact that the rocket company is on the verge of launching a fully commercial weekly service shows that the mortgage brokers in Westland did a very very good job. The interesting aspect for any financing for this company is that once the company gets into full swing and as launching a rocket once a week or even more frequent, then the business becomes extremely profitable. At this stage any lines are likely to be paid back very quickly, and the business will be able to operate completely on its own cash flow.

The rocket company may need to tap into their mortgage broker later on down the track if they need to spend a lot of R & D money to develop a new version of their rocket, but for ongoing business  the rocket company should be self funded.

Financing & Mortgage Brokers for the Fishing Industry

The fishing industry needs mortgages and  generally rewards those players that have the best equipment and boats, as these companies can go fishing more often and travel further to the fishing grounds and can be safe during rougher weather. For the fishing industry it is vital that they have good safe boats and good gear for this reason alone, and thats why they need mortgage brokers in Taranaki.

A good fishing boat and all the equipment on it can cost a few million dollars, and it will need to be purchased sometimes with great faith that the boat will be able to catch a lot of fish.  Most fishing companies do not worry at all about being able to sell their product, as there is always a very likely demand for fish. There most worry recently that they can catch another fish, and this means that they must be able to go out fishing as much as they can and to go as far as they can and not have to shut up shop during bad weather.

Fishermen need house mortgages too, apparently

The financial requirement for a new fishing boat is very complex, especially if the boat needs to be built. In some ways the financing is rather like a property development and that a deposit will be needed before the keel is laid,  and milestones will need to be paid during the life of the build project.

Once the boat has been completed and handed over then the fishing company will still need finance in order to set the boat up properly and to employ staff so that they can go out and start catching fish. The banks and lenders in this case need to have a lot of confidence an efficient company and particularly in the skill and reliability of the skipper and crew, and generally this means that the skipper and crew have to have a good record of catching fish and managing the boat and a business on the water. The banks will generally employ specialist mortgage brokers in Wairarapa to deal with a fishing company and the crew,  and to fully and completely validate any claims made by the company and skipper about the volume of fish they expect the catch. Its interesting because a real estate rep may also be a mortgage broker at the same time.

The nature of the industry means that a fishing boat can go out fishing for a few weeks, and depending on the size of the boat they can process a lot of the fish out of the water and put it on ice or even pack it  into it’s final supermarket form. Once the boat gets on land then the practice handed over and generally a very large sum of money is paid. The truth is that in the hands of a good skipper who really knows all the good fishing grounds, a new fishing boat can pay for itself within 12 months just by targeting valuable types of fish and being very successful about filling up the boat on each trip.

Commercial developments in New Zealand

Commercial Property Developments are generally complex both to project manage and to finance. Good mortgage brokers Waikato are essential, because any developer is obviously going to want to know that they got a good deal, but in most cases the problem was getting a deal in the first place. Specialist mortgage brokers in this market we’ll have a deep understanding of Finance in the financial requirements for the commercial property, and they will make sure that they can defend any recommendations to the banks and non Bank lenders yet they use for the mortgage.

A new commercial property generally picks up tenants before the property project has started, and these foundation tenants a very important in that they make it much easier for the mortgage brokers Auckland to get finance. Commercial property development has multiple stages,  and my stages will represent a payment  milestone. The mortgage broker in  each case will need to organise payment for the purchase of the land, payment for the preparation of plans and for obtaining consent, payment for the start of the construction, and payments for the milestones as the foundations are laid, the framing is completed and the building is completed and the smallest fully fitted out.

Financially for each stage will probably come from different lenders, given that the project risk changes as time goes on, and different lenders have different risk profiles. The mortgage broker may have to organise fairly urgent financing to purchase the property and to get the plans completed and the consenting finished, because the developer may have had to compete in the open market for the property. In most cases the mortgage broker will organise pre-approval for the developer.

There’s a number of developers in New Zealand who purchased rural land a long time ago and are sitting on the land watching it escalate massively and value, and they have no intention of subdividing a land when you housing until they think they are going to get the very best return on their money. Many of these developers are already very  cash rich,  and may not need a very large mortgage all to initially purchase the property, although if they are leaving the land undeveloped for a long time then this will also mean that their cash is tied up for a long time. This may be acceptable for a wealthy developer, but for someone less wealthy then the mortgage broker will need to find them a good deal on the mortgage because they will be expected to make payments on a loan that is generating no income.

The Humble Drainlayer In Hamilton, New Zealand

Drainage is a highly technical and very important piece of infrastructure in any property and in any city or town. For 99% of the population the drains are simply out of sight and out of mind, and they very conveniently get rid of all of our wastewater. The factors that 99% of our population have no idea what happens to the wastewater once pull the plug out of the bath or flush the toilet.

However they are always confronted with this lack of knowledge whenever there is a problem with their drainage, and the problem is more often than not can cause near panic for the innocent householder. Raw sewage flowing back into the toilet or even the bath or bonding in the backyard is a very unpleasant problem to have, and is never ever convenient.

At this time the humble drainlayer can appear to be an angel, as they will handle the problem that the householder can not even bear to look at. While blocked drains do not need to be cleared by a certified drainlayer, if the repair requires relaying an existing drain or replacing bits of the drain then a certified drainlayer is required. Drainlayers in Hamilton generally deeply understand get there trade is as much about public health as it is about construction or repair, and they get a great deal of satisfaction out of knowing that they are key Defender of the public health. Householder is can look in amazement at a drainlayer up to their waste in raw sewage while a dig a new trench for example, and consequently the householder this pretty much willing to pay whatever fee as required.

Drainlayers obviously have to pay a lot of attention to their own safety, and safety clothing and equipment plus a lot of attention to cleanliness and health protection is a vital part of their work. Most repair work is generally deadly urgent because the problem is so unpleasant for the householder, and this in most cases proves somewhat expensive for the householder.

Drainlaying is a fully regulated and certified industry, and all drainlaying work must be supervised and approved by a fully certified drainlayer. These people are vital for ensuring that drains are properly installed, which includes the proper bedding in to the trench, the proper fall of the rain and the proper connection at either end. A properly installed drain with the inspection pipe should never need re-excavating, and was modern long length PVC piping the only possible future blockages would be from items put down the toilet for example. Even then the modern toilet trap should prevent anything entering the drain that could cause a blockage. Deconstruction aspect and drainlaying is truly a piece of permanent infrastructure that will only need to be excavated if the building layout changes substantially.

Language development of an 18-month old baby

My granddaughter is about to turn 18 months in 3 weeks’ time. I am going to describe her language development. She has control of a number of initial consonants using them in words like mama, dada, and baba. These are m, d, t, p, b as starters. She is now experimenting which is typical of the explosion of words that occur at this time in their language development.

Instead of using single words, she is now stringing together a couple of words in 2-word sentences. When taking to children of this age, use lots of language including nouns, verbs and adjectives. She will now be able to understand not only truck but also descriptive words like big, small, red, or black.

Her language is now babbling as she experiments with various sounds. She chats away a lot, perhaps copying examples of people talking to her.  This is an important time – for parents, family and adults to talk to her, describe things in sentences and explain things to her. No longer will a dog be a ‘dog’ but she will begin to distinguish different shapes, sizes and colours of dogs.

She now understands some basic positional language like on/off (my necklace is on/ now it is off.); up/down. She demonstrated her understanding today as she sat down and then stood up when the words where used.

Her vocabulary of nouns is increasing all the time at this age. Yesterday she got excited when she repeatedly showed her mother a photo of an aeroplane – yes we had seen one in the sky and she had pointed it out.

She can identify family members now and point to them, also to parts of the body like ear, nose, hands and puku/tummy. She also recognises some Te reo Maori as was read from one of her books, bringing the book from her bedroom to the adult and not on queue ore requested.