McGaw Financial Solutions

✨ ~ Foxplan's pearls of wisdom series ~ ✨

Part 1: Are you one of the 228,000 Kiwi's that is part of the 'Buy now, pay later' scheme? 🫣

Buy now, pay later (BNPL) providers short-term, interest-free loans that people can use to buy anything from groceries to clothes and electronics. Recently it was reported that as a nation Kiwi's are racking up over $800 million a year through the BNPL scheme. 😱

As financial advisers our biggest concern is that if you miss a payment you incur a fee and if you're already lacking in the skills to manage your money correctly, this scheme could hugely affect your savings and future financial goals! 🤔💰

👀 Check out our latest article which covers this topic more in-depth and hit the 'Free no obligation chat with an adviser' button on the article to book in a money chat >> https://bit.ly/3QEXSuT

New lending laws are impacting borrowers. The banks are now going through every bit of spending on bank accounts and credit cards. They are then declining loans if they think you are going out regularly to restaurants, or having takeaways. If you have an application pending or in process please ensure you are careful with your spending.

Investors will be happy with new tax advice. They can offset the interest as a business expense for New Built houses for 20 years. This will encourage funding into new healthy rental properties. It will also probably increase existing housing stocks as investors who have mortgages on the investment properties divest of existing houses and put the funding into new built houses.

The ones that miss out will be the first home buyers having to compete in the new developments with investors.

Mind you with the Kick Start Grant price caps, the Government is not thinking or helping the young people get into their own home.