News - 18 December 2006

We wish you all a very Happy Christmas, and a safe and relaxing holiday break. Thanks to everyone who I have had the opportunity to meet and do business with over the past year. May 2007 bring all the success that you desire.

Stuart and Liz Duncan

This is our last newsletter for 2006. Newsletters will resume again on January 22, 2007.

Problem Profile

Buying property over the Christmas break!!

Many of you will be having a holiday over Christmas and New Year. With more time on your hands, and possibly being at an out of town location, you may find a property that looks interesting. The first questions that you ask are - Can I Afford It and Where Do I Get The Money From??

The answer is to give me a call on my mobile (leave a message if I don't answer immediately). I can talk you through the financing options over the phone, and will be able to give you a rapid idea of what may or may not be achievable. I have clients with properties all over the country, and am particularly familiar with the Coromandel, down to Tauranga.

If its a bargain that looks too good to resist, then give me a call to see how we can MAKE IT HAPPEN FOR YOU! CALL STUART ON 021 676 747 so I CAN HELP YOU!!

Food for Thought

" In order to succeed, your desire for success should be greater than your fear of failure." Bill Cosby

Interest Rate and Currency Comments

Whilst the Reserve Bank held the Official Cash Rate steady again, they warned very strongly that continuing strong consumer spending was likely to force an increase in rates soon. Most banks are holding off making a move for as long as possible, however their cost of funds has risen over the last week or so. Longer term rates are also seeing some pressure from higher US rates

With expectations of higher local interest rates in the New Year, the kiwi has risen again, towards 70 cents US. Until there is a reversal in that trend (which is likely to take some time), the kiwi will remain high.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 18 December 2006 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.67% (up)
5 year bond rate 6.22% (up)
NZ/US Dollar 0.6902 (up from 0.6848)

Current Range of Interest Rates for home and investment mortgages as at 18 December 2006.

Floating:
8.50 to 9.95% (stable)

Fixed For:
1 Year - 7.85% to 8.95% (stable)
2 Year - 7.85% to 9.25% (stable)
3 Year - 7.85% to 9.10% (down fractionally)
4 Year - 7.85% to 8.34% (up slightly)
5 Year - 7.70% to 8.26% (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.