News - 25 May 2009

The Alpha Update

Do You Know Where Your Money Goes??

I'm working with a number of clients at present helping them to see where their money is really going. For those with tight income or changed circumstances, this is critical. But even those with substantial incomes need to review their spending patterns from time to time to ensure they are reaching their goals in a timely fashion.

The exercise is designed to be a positive one, based on the principal that "what you can measure, you can manage". If you don't know where your money is going, how can you expect to build a sensible spending plan, let alone be able to monitor progress against the plan. It's not an exercise in not spending; it's about matching spending with income.

Who do you know who would like a review of their spending patterns and help with establishing an effective spending plan going forward? Get them to call me TODAY on 021 676747 or 0800 676 747 to book a time to meet and discuss their new future.

Food for Thought

Success inspires us but failure equips us - Dean Letfus

What's New??

• Home Security - The Art of the Burgular. Read more here
• All your Property Maintenance needs sorted the easy way www.maintaintoprofit.co.nz

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

The big news this week will be the release of National's first budget on Thursday. This will be very important because it needs to show a plan for returning the Government's deficit (overdraft with the rest of the world) back into the black as quickly as possible. A downgrade of NZ's credit rating would mean higher interest rates for us all as bank funding costs would rise as well.

The mortgage scene has been reasonably quiet over the past fortnight, with small drops in the 6 and 12 month fixed rates being the only noticeable changes. Little will happen until after Thursday's budget.

The kiwi has continued to rise against the US dollar, but has remained reasonable stable against the aussie as both currencies have risen in tandem against the US. Thursday's budget will provide further direction for the currency; particularly if it forces a downgrade in NZ's credit rating (currency will weaken also)

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 25th May 2009 the following Interest Rates applied:
Official cash rate 2.50% (stable)
90 day bill rate 2.79% (down slightly)
5 year swap rate 4.95% (up slightly)
NZ/US Dollar 0.6207 (up)

Current Range of Interest Rates for home and investment mortgages as at 25 May 2009

Floating:
5.99% to 7.45% (stable)

Fixed For:
1 Year - 5.49% to 6.79% (down slightly)
2 Year - 6.09% to 6.99% (stable)
3 Year - 6.65% to 7.25% (stable)
4 Year - 6.99% to 7.55% (stable)
5 Year - 6.99% to 7.75% (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.