Pero back to his broking roots
Mike Pero has come full circle, opening a new office in Timaru where South Canterbury Finance originally helped him build a national brand.
He was in town last night to officially open the new Mike Pero Real Estate office on Stafford St.
Mr Pero founded his mortgage broking business, Mike Pero Mortgages, in 1991 and, after five years in operation, South Canterbury Finance became financial backers.
"They brought in a lot of money thanks to Allan [Hubbard]," Mr Pero said. "It took the business from being a small business to a national brand.
"I can say we did pay all the money back by the late 90s and from then we paid dividends to South Canterbury Finance as 50 per cent shareholders."
He has since sold the mortgage company and in 2011 established a real estate company.
Originally, the Timaru real estate franchise was mobile, with Graeme Wilson the sole agent, but the agency had grown to six staff.
Mr Pero said the market had slowed up with first-home buyers having to find a higher deposit.
"We will continue to see a slowdown and with less demand, in theory, prices could come back.
"It is just another cycle; I've seen half a dozen. New Zealand has come out of recession ahead of other countries and the legislation [limiting the number of high loan-to-value-ratio mortgages lenders can grant] was probably one of the better options," he said.
"We had to do something otherwise inflation would have been a problem."
Mr Pero's name originally came to national notice through his motorcycle racing. He set the New Zealand land-speed record for a 350cc motorcycle in 1979. The record of 224kmh still stands today.
- © Fairfax NZ News