Great! You’re at our FAQ page, hopefully meaning you’re keen.
Why should I use a financial adviser?
By using an adviser, you have access to the entire market and always have someone in your corner. It’s our job to make sure you have the right strategy and structure for your future, and get you in the best possible position for success.
How do you charge?
For the most part, what we do is free! It depends what we will need to do for you. All fees will be communicated upfront, so there’s nothing sneaky. The first meet up and chat is free, so all you need to do is reach out.
Why Money Empire?
We like to approach people’s finances and futures with a little bit of cleverness. If there is a will, there’s a way. We like to make the way happen.
We also have all of the facilities you could need under one roof, from insurance and mortgages, to property management and maintenance, development finance, and a podcast full of the latest information. Why wouldn’t you come to Money Empire at this point?
Why do I need to provide so much information?
It sounds like a lot, but for each application, we need our clients to send across a heap of information! In the same way you would disclose your medical history and situation to your doctor, you should disclose your financial history and situation to your financial adviser. We’re here to help.
What is Design a Decade – Property Style?
Design a Decade – Property Style is a service provided by Money Empire, taking a long-term approach to wealth creation through property investment. Typically, it takes around a decade of thoughtful investment before you begin to see significant returns.
This service imparts individuals with the financial freedom to make decisions around working less, retirement or expanding their property portfolios in a calculated manner. By employing the ‘Design a Decade’ strategy, investors can establish a well-defined plan to achieve financial objectives within their decade. This process should be reviewed annually to ensure it aligns with your personal objectives and evolving circumstances. Come chat to us now to begin designing your Decade.
I’m overseas – can you still help me?
Absolutely! We have many clients based all over the world – thanks to technology, we can service you wherever you are. As long as you are a New Zealand citizen or resident, you can purchase property in New Zealand, regardless of your physical location. If you have a residence class visa but are not an ‘ordinarily resident’ yet, you can buy or build one home to live in as long as you get consent from the Overseas Investment Office before doing so. You are able to apply for pre-approval that lasts up to a year.
How much can I borrow?
This is completely dependent on your income (serviceability) and how much you can gather to put down as a deposit. Your adviser will begin by looking at your current financial situation, and together you will determine how far you can go. The common rule of thumb in the past was to multiply your household income by five to give you how much you can borrow. The process is now quite convoluted so engaging with a top adviser will give you the best result possible; so it’s best to get in touch!
Is it better to get a mortgage or home loan from a bank or broker?
The beauty of utilising a broker or financial adviser is that it allows you to explore your options. Obtaining a loan from your bank can sometimes lead you to receive a ‘yes or no’ answer due to being restricted in product and credit by that provider. A mortgage broker is going in to bat for you at all times, meaning you will get the best result for you, not the best result for the banks.
How can I use equity from my existing property to invest in another property?
The power of leveraging equity and using the bank’s money to do so. Obviously this is case by case and depends on your situation.
There are two types of equity:
- True Equity
- Usable Equity
True equity is what your house is valued at, less your mortgage. For example, if your house is currently valued at $1,000,000, with a remaining mortgage of $700,000, your true equity is $300,000.
Usable equity is any amount of equity over the minimum threshold you are required to keep in the initial property. In the example above, based on an owner-occupier LVR (loan-to-value) ratio rules, $200,000 would need to remain to maintain a 20% true equity position. Meaning $100,000 would be considered usable equity.
What is a mortgage? What is a home loan?
A mortgage is a loan from a lender to help you complete the purchase of a property. The lender would use the property as an asset for security. You get charged for this loan through an interest rate.
How much can I borrow?
This completely depends on your income and how much you can put down as a deposit. We’ll start by looking at your current situation, and then together we figure out how far you can go. We’ve heard of the ‘multiply by five’ rule, which means you multiply your income by five to get your borrowing capacity. This isn’t always true, so it’s best to get in touch!
Is it better to get a mortgage or home loan from a bank or broker?
The beauty of a broker or a financial adviser is that you’re unlimited in your options. Getting a loan from your bank can sometimes lead you to get a ‘yes or no’ answer, without taking into account your entire financial net worth and capability.
A broker has someone in your court at all times, and means you get the best result.
Can I use equity out of my existing home to buy another?
It depends on your situation, but the answer is usually yes! There are two types of equity you can use:
- True equity
- Useable equity
True equity is what your house is valued at, less your mortgage. For example: $1,000,000 house, with a $800,000 mortgage, your true equity is $200,000.
Useable equity is based on loan to value ratio (LVR) rules. If it fits within this category, you can leverage to purchase a new property on 100% finance.
I’m a New Zealand citizen but I live overseas, can I buy property and get a home loan?
Yes you can! It’s all dependent on income and stability of the income, for example, having a stable paycheck. Generally, lenders and banks will convert your income to the New Zealander dollar, scale the income back for tax purposes, and then use this to figure out how you can service debt. Deposits of course vary, but everything is possible.
What’s the most common mortgage type in New Zealand?
It’s called a Table Mortgage. This is a 30-year term on principal and interest repayments. In the first 20 to 21 years of the mortgage, interest is dominant. At the back end of this 30-year mortgage is where you can pay off the principal. There are of course other ways you can pay off your home loan quicker, but learning the basics is a good start.
Why do I need insurance?
Insurance is one of those intangible things that you don’t see the worthiness of, until you have to use it. Insurance protects you in an unforeseen event, such as loss of income, loss or damage of contents, loss or damage to a house, or loss of life. All insurance should be underwritten, which takes into account your family or medical history. This makes sure your claim is paid out correctly, and you’re all covered!
Do I need insurance? Won’t ACC help me?
Depending on what has happened to you, ACC may not be able to help. ACC is workplace accident cover, not illness cover! That’s why having health insurance, trauma or total permanent disability cover is important, because it means your most important asset is kept safe: you!
Why do I need house insurance for settlement?
Your house is a huge investment! Your lender will require you to have house insurance in place for settlement. House insurance protects any damages to your home and will give you, and the lender, peace of mind should anything happen.
Why do I need landlord insurance?
In the awful event something happens to your investment property/ies, you are safe from the worst of it. This could mean if your tenants run from paying rent, or a damage happens to the property by the tenants, you can breathe a sigh of relief that you’re covered for things outside of your control.
What’s the difference between bank insurance and an insurance provider?
Bank insurance, as a whole, is generally a much more watered-down version of insurance. It is often underwritten at the time of claim. With insurance providers, you have the opportunity to make sure you’re covered from A – Z, as you can underwrite beforehand. An insurance company or provider specialises in insurance only, so their policies, benefits, and terms are designed specifically for insurance, and with the customer in mind.
Why do I need an insurance adviser when I can just chat to the insurance company?
We believe in free-will here, but we also believe in making sure our clients (you) get the best possible deal. Insurance advisers go in to bat for you to get you the best deal within your budget, and you don’t have to call an 0800 number, sitting on long wait times. Insurance brokers/advisers are experts in their fields, so you will receive personalised advice and a full understanding on how things get done.
Still got questions?
We are here to answer!