Hi Olly,
Love your question service !!!

My investment property mortgage is due for renewal – and I’m leaning towards leaving it on floating rate – do you think the floating rates will increase next month after the ocr review?

The property is in Onehunga – appreciate your views on this suburb in regards to capital gains?
Thanks again,
Choc

Dear Choc
I would leave the mortgage floating for the moment as fixed rates are so much higher. I think interest rates will climb very slowly if at all.
Onehunga is a very popular suburb because of its age and village atmosphere. It is high on the list for long term gains as compared to the chilly-bin boxes
in some of the outer suburbs.
Cheers
Olly

Hi Olly

Our home loan (ASB) for our rental property comes of a fixed rate of 9.05% in July. I would like to re-fix the loan ($301,876) for 2 years at 7.30%. My husband says we should take advantage of the floating rate of 6% for a while and fix it once it starts going up again. I say the fixed rate would have increased at the same time and we won’t gain anything by waiting and we should lock it in now. What would you advise us to do?

Thanks
S

Dear S
I think stay floating for a few months yet. If there are strong signs of yet another interest rate rise then fix for 1-2 years.
I am not convinced that the economy can stand more interest rate increases this side of Xmas.
A lot depends on what happens overseas.
Regards
Olly

Hi Olly
What is your opinion on the future of the Whangaparoa Peninsula and in particular Gulf Harbour? Prices are comparatively low compared to the boom days and with Baby Boomers retiring over the coming years would it be a good place to look at?
Thanks
GB

Dear GB
I have a lot of confidence in the Whangaparoa/Orewa area and I think a lot of people will think likewise.
With excellent beaches views and first rate motorway to the city it has to be a good area to invest in.
Gulf Harbour is a little slower as it was over built — and there were some pretty shoddy building jobs done.
Anything near water and views has to be good.
Regards
Olly

Thanks Olly. I appreciate your opinion. Regards,