News - 22 June 2009

The Alpha Update

Tips to make your next property purchase flow smoothly...

Many people create unnecessary grief for themselves when buying property. By following a few simple suggestions, you can take away much of the hassle because you have planned the process properly. Here are some tips applicable to any property purchase that can help reduce your stress levels

• DON'T settle on a Friday (everyone else does so banks and lawyers are extra busy). Additionally, you will pay more for a removal company on a Friday or Saturday than you will on a Tuesday!
• DO have a reasonable time for finance dates and settlement dates (I suggest minimum 2 weeks for each - more for finance if your situation is tricky as lenders are taking much longer to make decisions). Short time frames means mistakes can get made because people are under pressure.
• DO consult with your lawyer and broker BEFORE signing an agreement (sale or purchase). Once signed, get the paperwork quickly to both broker and lawyer.
• DO be completely honest in your disclosure on lending applications. Lenders will read your bank statements, they will check into student loans, interest free hire purchase agreements, etc, and they will ask about any credit cards that they see payments being made to.
• DON'T have 2 brokers working on the same transaction (lenders get confused when they see the same request from 2 different sources and annoyed when their time is wasted).
• DO conduct a through presettlement inspection of the property 24 hours before you settle, and address any issues with your solicitor immediately.

Who do you know that is moving home or buying an investment property? Get them to call me TODAY on 021 676747 or 0800 676 747 for more helpful hints and tips.

Food for Thought

Courage is not the absence of fear, but rather the judgement that something else is more important than fear.

What's New??

• Westpac continues with special pricing deals
• 80% LVR on investment properties with some lenders

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

There was no change to the OCR last week and there has been little change in interest rates as a result. TSB has reduced it's 2 year rate today, but others are unlikely to follow. Overall, lenders are trying to preserve their margins, because of the high price they are paying to attract deposit funds. Longer term rates will continue to rise as the international cost of money increases.

The kiwi has continued to rise as demand improves for riskier currencies. This is not helping our "export led recovery" so measures will be taken to try and drive it back down again.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 22nd June 2009 the following Interest Rates applied:
Official cash rate 2.50% (stable)
90 day bill rate 2.82% (up slightly)
5 year swap rate 5.42% (up)
NZ/US Dollar 0.6428 (up)

Current Range of Interest Rates for home and investment mortgages as at 22 June 2009

Floating:
5.99% to 7.45% (stable)

Fixed For:
1 Year - 5.49% to 6.24% (stable)
2 Year - 6.99% to 6.70% (stable)
3 Year - 6.75% to 7.25% (stable)
4 Year - 7.40% to 7.70% (up slightly)
5 Year - 7.50% to 8.10% (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.