We are at that time of the year again.
With a few days left in 2016, this is a good time to reflect on 2016.
Politics has been very rocky. In Brazil, Dilma Rouseff was impeached. In Europe, we saw Britain vote for Brexit, the resignation of David Cameron. In USA, we saw the election of Donald Trump and the Republican party gaining power in the Senate. In Asia, the Parliament voted to impeach South Korean President In New Zealand, we saw John Key announce his resignation just this month. Days later, Italian Prime Minister also resigned.
Other economic events include changing oil prices and the Fed’s rate hike. The fall of oil prices to below $30 per barrel happened in the first part of the year. Only to recover to over $53 per barrel in December. That’s a 70% increase in less than 12 months. The Fed increased the Fed rate – it’s first time since last year AND the second time in 10 years.
As for NZ property, there are talks of adding further mortgage restrictions. Currently, the Reserve Bank limits the Loan to Value ratio. In the future, the Reserve Bank may be able to limit the debt to income ratio. This means the amount you can borrow will be limited as a multiple of your annual income. If the debt to income ratio is set as low as 4.5, it could make getting mortgages much harder for marginal borrowers.
For some, 2016 has been quite a year. For others, it has been more or less the same.
Let’s look forward to a happy and prosperous 2017 year.