News - 3 November 2008

The Alpha Update

Need a Hand to Survive and Prosper in the Current Environment??

The best defence against uncertainty is knowledge and preparation. You cant change the global financial situation, but you can change your own lifestyle and business operations. Maybe this is reducing debt to derisk yourself, maybe it's streamlining processes and making the business more efficient, and maybe it's looking to take over your competitor who is about to fold. Whatever the situation, you need to have knowledge about what your options are, then a plan to follow your chosen option.

I have been working with several clients to help them work out what their possible options are and what the best path for them should be. We are working through the development of a plan and action steps to make the plan real. From improved purchasing opportunities, through to systemisation of the routine elements of your business or investing activities, opportunities abound at present.

Who do you know that needs a helicopter view of their business, then a plan to survive and prosper?? Get them to Call Us Today on 021 676 747 or 0800 676 747 for a CONFIDENTIAL consultation and review of their situation. Call to book a consultation now and receive a free copy of "10 Tips to Better Cash Management"

Food for Thought

"In the long run the pessimist may be proved right, but the optimist has a better time on the trip." - Daniel L. Reardon

What's New??

• Interest Rate Reductions again
• GE Money pulls out of the mortgage market
• Small sized apartment lending available still

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 expected 1% cut in the Official Cash Rate was duly delivered, with lenders varying in the timing and amount of cuts to interest rates for competitive and practical reasons. There are some reasonable differences amongst lenders at present, with regard to areas such as credit policy, interest rates, and turn around time. These factors have to be considered carefully, because the lowest fixed interest rate now may not be the best option in the coming months, and if you have a quick settlement, you will need a lender who can meet the timeframe. Kiwibank is currently 2-3 weeks behind in processing applications!

The continuation of wild swings in the currency has been driven by offshore events and the unwinding of speculative investments in NZ and Aussie dollars. Whilst international credit markets are easing, sentiment remains nervous at best. Plan for the kiwi to be around 55 cents US for the next few months, but with swings of up to 5 cents either way!

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 3 November 2008 the following Interest Rates applied:
Official cash rate 6.50% (down substantially)
90 day bill rate 7.10% (down)
5 year swap rate 6.50% (down)
NZ/US Dollar 0.5950 (down)

Current Range of Interest Rates for home and investment mortgages as at 3 November 2008

Floating:
8.70 to 10.70% (down)

Fixed For:
1 Year - 7.90% to 9.96% (down)
2 Year - 7.78% to 9.85% (down slightly)
3 Year - 8.20% to 9.85% (down slightly)
4 Year - 8.50% to 9.72% (down slightly)
5 Year - 8.60% to 9.45% (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.