Jing Tao and Bai Tseung are a couple aged 34 and 36 respectively, wanting to refinance their current property: Residential Property Lending Strand Case Study, NZ

Case Study 2: Jing Tao and Bai Tseung

Jing Tao and Bai Tseung are a couple aged 34 and 36 respectively, wanting to refinance their current property and release a maximum of $80k to purchase a rental property. Jing has stable employment as an accountant, employed for the past three years for Spark. She earns $90,000 per annum gross. Bai works as a tiler, employed by Chance Property Developments for the past six years. He earns on average $65,000 pa gross which does not include any overtime
payments.

The security address is 104 Lansdowne Crescent, Glenview, Hamilton. Their property has recently been valued at $630,000 and their current mortgage of $300,000 is with ASB. It is currently on a floating rate at 5.2%pa (P and I) and has 15 years to run. The couple want to get onto the property investment ladder with their first rental property purchase
in Ellicott Road, Nawton, Hamilton with a value of $580,000. The 3 bedroom brick and tile property has had a rental appraisal and the expected rental is $500 -$530 per week. The rates are $2,100 per annum and house insurance has been quoted at $1,598 per annum.

Jing and Bai have $60,000 in savings that could put towards the deposit on the property. They have good savings records, with no debts apart from their mortgage. They are happy to consider all possible funding structures. The loan request is for $820,000 – the total of their current mortgage plus what they will require for the rental. They want to take advantage of the good fixed term rates and lock their mortgage repayments in for 2 years.