News - 28 May 2007

The Alpha Update

100% Commercial Property Finance

I had a client recently who wanted to purchase his own premises to operate his business from. However, he didn’t have any substantial cash to contribute towards the purchase, and the business had only been going for a short period.

The solution was creative with both the client and the lender being very happy with the outcome. Equity that was available in another property was used to support the proposed borrowing until debt levels had reduced. Information regarding forward income for the business was provided to the lender to justify financial projections provided in support of the application. The net result to the client was 100% finance, interest only for 5 years, at a competitive fixed rate.

Who do you know who know who is in business and would like to buy their own commercial property ? Get them to call Stuart Duncan at Alpha Financial Solutions on 021 676 747 or 0800 676 747 to discuss their situation. We can help!

Food for Thought

A leader must have the courage to act against an expert's advice. If your actions inspire others to dream more, learn more, do more and become more, you are a leader

What's New??

Two residential property offerings this week, but both with guaranteed leases in place, making them quasi-commercial. One in Henderson, one in the CBD. Call me NOW on 09 524 6062 to find out more!

Interest Rate and Currency Comments

There have been few major movements in interest rates over the past fortnight, with no one opting to follow Kiwibank's attempted discounting strategy. However, economic data continues to be strong and indicates improving rather than declining fortunes for NZ in the coming months. This may force the Reserve Bank's hand yet again to raise interest rates. The advice at present is to lock in your rate sooner rather than later!

The kiwi has dropped by around 2 cents against the US dollar, although it has remained stable against our other trading partners. This reflects an improvement in the US dollar, rather than a fall in the kiwi. Signs of increasing interest rates could yet again see the currency rising.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 28 May 2007 the following Interest Rates applied:
Official cash rate 7.75% (stable)
90 day bill rate 8.10% (stable)
5 year bond rate 6.85% (up slightly)
NZ/US Dollar 0.7248 (down from 0.7272)

Current Range of Interest Rates for home and investment mortgages as at 28 May 2007.

Floating:
8.80 to 10.05% (stable)

Fixed For:
1 Year - 8.65% to 9.60% (up)
2 Year - 8.60% to 9.80% (up)
3 Year - 8.50% to 9.70% (up slightly)
4 Year - 8.45% to 9.51% (stable)
5 Year - 8.50% to 9.17% (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.