News - 18 August 2008

The Alpha Update

Signs of Sunshine!

Despite weeks of rain, and even more weeks of bad news in the press, there are glimmers of sunshine staring to emerge. Fuel prices are down from their recent peaks (still expensive I know), interest rates are starting to fall (albeit slowly) and the NZ dollar has fallen sharply (making our exports more competitive). The number of house sales has also increased, and there are more people thinking about buying, or at least looking more seriously. A number of properties have come off the market and are now being rented, which reduces the supply of houses for sale.

And, most importantly, we are winning Olympic medals, the Rugby and the League! This translates into confidence - both Business Confidence and Household Confidence. If you are thinking about buying or selling property (residential or commercial), now is the time to get ready and be prepared to move. Once the sun comes out, so will the masses.

Be ahead of the masses by examining your finances NOW so you are prepared! Call us Today on 021 676 747 or 0800 676 747 for a Free Review of your financial situation and options. WE CAN HELP!

Food for Thought

"Politics is the art of looking for trouble, finding it, misdiagnosing it and then misapplying the wrong remedies." Groucho Marx

What's New??

• Debt consolidation loans from a range of lenders
• 2008 Property Services Book now available - a "yellow pages" specifically for all things property

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

Still no reductions in floating interest rates in the past fortnight, however there have been some small drops in fixed rates as lenders jostle for position. Lenders are also competing hard to retain existing clients due to the lack of new business being written. Economists are unanimous that there will be another fall in the Official Cash Rate next month and the trend is likely to continue through until Christmas. Thus shorter term fixed rates remain the option of choice at present

The kiwi has taken a major dive in the past month against the US currency, down almost 10 cents against the greenback. However falls against other currencies have been more modest, which is good news. The stronger US dollar has also helped reduce oil prices. With falling interest rates in NZ and offshore uncertainty not favouring the kiwi, the downward trend is likely to continue for some time yet.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 18 August 2008 the following Interest Rates applied:
Official cash rate 8.00% (stable)
90 day bill rate 8.25% (down)
5 year swap rate 7.11% (down)
NZ/US Dollar 0.6920 (down)

Current Range of Interest Rates for home and investment mortgages as at 18 August 2008

Floating:
10.20 to 11.00% (stable)

Fixed For:
1 Year - 9.05% to 10.85% (down slightly)
2 Year - 8.84% to 10.65% (stable)
3 Year - 8.85% to 10.55% (down slightly)
4 Year - 8.90% to 10.35% (stable)
5 Year - 8.95% to 10.35% (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.