Firstly, compliments of the season to you and your family. 2023 is shaping up to be a very interesting year for New Zealanders, given the looming election and Labour will campaign under a new leader, Chris Hipkins.
At Endow, we have been carefully monitoring the economic outlook both domestically and offshore. In particular, the most recent inflation data, including the next 12 to 18-month forecasts, as interest rates are intrinsically linked to how inflation will track moving forwards.
2023 will be a year where caution will be rewarded and Endow is very aware of this. From an investors perspective careful attention is required, to not only the property security’s value being offered. But also the track record of the borrower, what collateral securities are available. Such as additional guarantees, strength of the borrower’s servicing ability, and or financial strength of any tenant occupying the property.
If you’re thinking of investing with Endow, we expect to have some new investments come available in the month of February. Which will likely generate returns of between 9 to 10% per annum (before RWT).
If you are thinking of borrowing, we continue to have funds available for the right opportunity. We can, given our long-term experience in the New Zealand property funding environment, offer suggestions as to ways in which a lending application can be structured to enhance its chances of being viewed more favourably by a potential investor.
