News - 4 February 2008

The Alpha Update

I still need your help ... What Do YOU Want To See In My Newsletters?

Two weeks I sent out this short questionnaire and would still like to hear back from more people. Please email me to let me know what you want to see in these newsletters this year, and Answer these Questions:

1. Frequency (currently fortnightly) - too often, just right, not often enough
2. Content - rubbish, fantastic, just what I need
3. Please let me know your thoughts for content changes/improvements - what would you like to see?
4. The interest rate table - useful regularly, useful occasionally, not useful at all
5. The Alpha Group Website - Is it useful for you? What do you like best? Worst? What would you change? What would you like to see?
6. Any other comments/suggestions

Email stuart@alphagroup.co.nz now!

I appreciate that Your Time and Feedback is Valuable!

To Say THANK YOU, One Respondent will be given a Free Night's Accommodation at a Heritage Hotel of their choice!

It’s Tax Time!

And in case you needed reminding, tax time is looming. Key dates for you to remember are: February 7 (terminal tax), March 7 (provisional tax) and March 31 (end of financial year). At Alpha Group, we can help you get your finances in order and avoid the stress that this time of year can create. Call us today on 021 676 747 or 0800 676 747

Food for Thought

A clear conscience is usually a sign of a bad memory Steven Wright

What's New??

• Finally, some small drops in interest rates!
• A gradual but noticeable tightening of lending criteria across all lenders

If any of these concern you and you want to know more, email Stuart@alphagroup.co.nz

Interest Rate and Currency Comments

The Reserve Bank held interest rates in their first review for 2008 on January 24th. Since that announcement, the US Federal Reserve has dropped its floating rate by a total of 1.25% in 2 moves, designed to counter increasing data showing that the US is in recession. Only time will tell if these moves will be effective. The local impact has been cheaper offshore money, allowing lenders to make small cuts in their fixed term rates. This trend may continue if US interest rates weaken further.

The kiwi has jumped over the last week as lower US interest rates have caused a substantial drop in the US dollar. However, unlike in previous months, this rise is driven by low volumes as investors in areas such as Japan and Europe have less funds available for investing in NZ dollars and other minor currencies. Wild swings may well develop!

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 4 February 2008 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.75% (stable)
5 year swap rate 8.04% (stable)
NZ/US Dollar 0.7810 (up from 0.7775)

Current Range of Interest Rates for home and investment mortgages as at 4 February 2008

Floating:
9.49 to 11.40% (stable)

Fixed For:
1 Year - 9.50% to 10.60% (stable)
2 Year - 9.25% to 10.25% (down slightly)
3 Year - 9.05% to 10.10% (down slightly)
4 Year - 8.99% to 9.72% (down slightly)
5 Year - 8.75% to 10.0% (down slightly)

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.