2020 has brought new opportunities and challenges

As lawyers we love helping our clients take an idea from concept to implementation. 2020 has presented many opportunities to think outside the square and capitalise on the current market.

Interest rates are incredible at the moment – no good for saving but exceptional for borrowing. The housing market in Auckland has reacted with quick sales and higher sale prices than previously and Covid-19 has forced people to think differently about the way they do business. This unique situation has resulted in the development of new business and investment ideas and opportunities.
However, if you are considering taking advantage of the interest rates to get on the property ladder, expand your property portfolio, or to invest in a business venture, or anything in between, you need to get sound legal advice. Because, while it is tempting to extend your borrowing while interest rates are low, it is vital to maintain a long-term outlook on any financial commitment as interest rates will inevitably bounce back. As a result, you need to ensure that your ability to service any borrowing is appropriate to your circumstances in the long-term.  
If you are ready to take the leap, you will need to provide the bank or lender with security and in some cases, personal guarantees. These should not be taken lightly as they have significant personal and legal consequences. Lenders ensure that they are well protected and failing to truly understand your commitments and obligations under a mortgage or guarantee is unwise.  
As lawyers who want to assist you to understand your legal position, we are here to help you navigate the process. Whether your project is big or small, running smoothly or having hiccups, we are here to assist.    
If you want to explore a commercial opportunity we can advise you on business structures, contract negotiation, drafting and review of agreements or leases, intellectual property, commercial sales or acquisitions, dispute resolution and much more. If you are buying a home or an investment property, we will assist you to prepare for the sale or purchase from a legal perspective and ensure that you understand your obligations under any legal documents, loan agreements or guarantees.    
In any legal journey we will walk beside you.  Should there be any unexpected difficulties, we will assist you to work through them. Whatever your desired outcome, the team at Schnauer & Co Lawyers are well equipped to provide you with straight-forward plain-English advice and support.

Schnauer & Co, 1 Shea Terrace, Takapuna
09 486 0177 www.schnauer.com

Issue 116 December 2020