News - 23 July 2007

The Alpha Update

Finance Solutions

Some clients I see know pretty much what they want, and use a mortgage broker to save them time and money, and tap the experience that I bring to their situation. Many others, however, have got a problem of some sort and don't know how to solve it. In many instances, they have been to their bank, who has said "NO"

YOU HAVE PLENTY OF OPTIONS, EVEN IF THE BANK SAYS "NO"!!

Depending on the situation, a non-bank lender may be appropriate, or a true finance company (short term solution with a refinance after say 12 months), a specialist plant or business financier, or even a cashflow lender. Commercial property finance options include a wide range of non bank lenders (eg: insurance companies), and even through to development financiers.

If you or anyone you know has a problem getting finance, then call Stuart on 021 676 747 or 0800 676 747. We have over 20 years of experience and a wide range of options available. Give us a call today.

Food for Thought

Dreams have only one owner at a time. That's why dreamers are lonely. - Erma Bombeck

What's New??

• $200 discount on tickets to the Auckland Property Investors Association workshop is still available
• 2 bedroom newly refurbished rental unit in Royal Oak available for sale
• A range of high-spec retail office and warehouse units are available in Whanagaparoa for commercial investors and owner occupiers

For more information about any of these opportunities, email Stuart@alphagroup.co.nz

Interest Rate and Currency Comments

Retail interest rates have been stable for the past fortnight. However, underlying wholesale rates have trended upwards last week, in anticipation of an OCR rise this Thursday. Inflation remains persistent and despite signs of easing (net migration falling, house price appreciation slowing), the market is almost certain that Alan Bollard will raise rates this Thursday. Longer term rates are not under the same pressure and should remain stable for the next few months.

Despite massive debate and half-hearted political pressure, the kiwi has carried on towards US 80 cents. Almost all exporters are screaming, and unemployment will certainly rise if the currency stays at these levels until Christmas. Be prepared for a sudden drop when the trend reverses!

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 23 July 2007 the following Interest Rates applied:
Official cash rate 8.0% (stable)
90 day bill rate 8.50% (up)
5 year bond rate 7.42% (up)
NZ/US Dollar 0.7936 (up from 0.7819)

Current Range of Interest Rates for home and investment mortgages as at 23 July 2007.

Floating:
9.0 to 10.30% (stable)

Fixed For:
1 Year - 8.90% to 9.93% (stable)
2 Year - 8.75% to 9.99% (stable)
3 Year - 8.70% to 9.99% (stable)
4 Year - 8.60% to 9.71% (stable)
5 Year - 8.75% to 9.80% (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.