News - 14 April 2008

WE HAVE MOVED!!

Our NEW LOCATION is Suite 2, Level 2, Penrose Business Park, 45 O'Rorke Rd, Penrose. Our NEW PHONE NUMBER is 579 4838 and NEW FAX NUMBER is 579 4395. Mobile and 0800 numbers are the same.

The Alpha Update

Debt Consolidation and Budgeting

With fuel, food and mortgage rates all having risen significantly over the last 6 months, it is no wonder that cashflow is tight for most of us. It takes time to adapt to a new reality of costs. However, like my client last week, YOU CAN DO SOMETHING TO HELP YOURSELF. And the fix doesn't have to be that hard.

Like my client, have you managed to accrue short term debt over the past few years - hp's on the fridge or the plasma tv, credit cards that you don't seem to be able to pay off in full, perhaps a personal loan or two?? She had two HP's, a credit card and a personal loan.

What did we do? First, she made a list of all the debts she had, how much she owed, how much she was paying per month and what the interest rate on each was. The she came to see me. Together, we totalled the monthly payments and the debt. Then we worked out that if she refinanced these debts into her mortgage, she could pay the same amount monthly and have them all repaid in 4 1/2 years, or she could reduce her payments by $400 per month if we extended the term to 15 years. In fact, she chose a bit of both, reducing her monthly payments by $200 and extending her loan term to 10 years.

A couple of extra hints around budgeting advice helped to ensure that she wouldn't get back into this situation again (well not easily anyway)!

Who do you know that is having a cashflow crunch of their own?? Get them to call Us Today on 021 676 747 or 0800 676 747. We Can Help!!

Food for Thought

"The degree of one's emotion varies inversely with one's knowledge of the facts - the less you know the hotter you get."  -- Bertrand Russell

What's New??

• Lo doc loans to 80% LVR, No Doc loans to 55% LVR
• 110% loans for First Home Buyers with Substantial Incomes
• Our New Offices! Give me a call and pop in for a coffee and a chat

If you or anyone you know wants to know more about any of these products, email Stuart@alphagroup.co.nz

Interest Rate and Currency Comments

Interest rates have been reasonably stable over the past week or so, with contradictory forces of a weakening local economy and persistent high inflation fighting against one another. The global financial markets appear to have found some stability, albeit an uneasy stability. Locally, business confidence is weakening, although there are wide variations across sectors. Generally, businesses are being more cautious, but are still spending.

There has been relatively little change in the kiwi over the past fortnight, trading in a range around 1 cent US. There has been good news around our export markets (particularly dairy, coal and general trade with China) which has underpinned the currency again.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 14 April 2008 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.89% (down)
5 year swap rate 7.89% (stable)
NZ/US Dollar 0.7990 (down from 0.8070)

Current Range of Interest Rates for home and investment mortgages as at 14 April 2008

Floating:
9.80 to 11.50% (stable)

Fixed For:
1 Year - 9.50% to 10.95% (stable)
2 Year - 9.25% to 10.55% (stable)
3 Year - 9.15% to 10.85% (stable)
4 Year - 9.05% to 10.35% (stable)
5 Year - 8.95% to 10.80% (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.