News - 16 April 2007

The Alpha Update

Weather report from Bali: 26 - 34 Degrees and fine!

I harp on about loan structures, and ensuring your structure meets your particular needs, both now and in the future. In a rising interest rate market, this is even more critical. An appropriate structure will save you more money over the long term than trying to find the lowest interest rate from a lender. This has been confirmed by independent studies by Consumer Magazine as well as many industry commentators.

Call me now 021 676 747 or 0800 676 747 for a Free review of your loan structure!

Food for Thought

You do not lead by hitting people over the head - that's assault, not leadership.

What's New??

I have a client building several new investment housing projects, in various parts of Auckland. Call me now to find out more details.

Interest Rate and Currency Comments

Continued economic growth and labour shortages have pushed up the kiwi dollar and almost certainly will result in one, or possibly two, further rises in floating interest rates this year. Be prepared for floating rates at 10% and fixed rates above 9% (having said that, it is still much better than the 20%+ rates of the mid and late 1980's!). All interest rates are now higher than they have been on average over the last 5 years.

The factors mentioned above continue to push the kiwi higher against the US dollar, although less so against the Aussie. This means our exporters aren't hurting as badly as the papers may lead us to believe, as some 40% of exports go across the Tasman. The US cross rate will go higher before it starts falling.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 16 April 2007 the following Interest Rates applied:
Official cash rate 7.50% (stable)
90 day bill rate 7.91% (down slightly)
5 year bond rate 6.67% (up)
NZ/US Dollar 0.7350 (up from 0.7136)

Current Range of Interest Rates for home and investment mortgages as at 16 April 2007.

Floating:
8.70 to 9.95% (stable)

Fixed For:
1 Year - 8.0% to 9.45% (stable)
2 Year - 8.20% to 9.50% (up slightly)
3 Year - 8.05% to 9.41% (stable)
4 Year - 7.95% to 9.26% (stable)
5 Year - 7.90% to 9.17% (stable)

For a complete table of interest and exchange rates, click here.

The information stated herein was correct at the time of release, but is subject to changes without notice.