News - 5 February 2007

HAPPY WAITANGI DAY!

The Alpha Update

A friendly reminder – Terminal Tax Payments are due 7 February!!

It seems as though we’ve only just returned back to business-as-usual after the Christmas holidays and now terminal tax is due. If you need a bit of financial help at this time of year to pay those holiday and tax bills, get in touch with us.

There is most likely a way to restructure your current financing arrangements to free up some cash or help you top-up and borrow more to meet tax commitments due. At Alpha Financial Solutions, we can review where your finances are at and work with you to get your money working smarter for you.

If you, or anyone you know, is needing help with their finances this year, give Stuart a call on 021 676 747 or 0800 676 747.  Don’t let the Tax Man get you down !

Food for Thought

Things should be made as simple as possible, but not any simpler. - Albert Einstein

What's New??

For all those readers who have an investment property that is cash negative (ie: you have to support the property with money from your own pocket), there is a new loan product just released that can help you out! This lender will capitalise (ie: add onto the loan amount) the shortfall between what the property is earning and the interest cost. For example: if your investment property is showing a 5% yield and interest is (say) 8%, this lender will capitalise the 3% shortfall into the principal, in the expectation that capital growth will offset the extra interest that has been added. Net effect to you - no more putting your hand in your pocket to support the investment property!!

Call me NOW on 524 6062 to find out more!

Interest Rate and Currency Comments

As expected, the Reserve Bank left interest rates on hold last week. However, they indicated that a rate rise was almost inevitable in 6 weeks time. Interestingly, there has been little movement in interest rates as a result, with most lenders having made their changes in early January. As always, banks are negotiable on pricing for the right deal - Call me to find out how negotiable they can be!!

Same old, same old for the currency - short term expectations to remain around current levels, longer term trend for a fall as local interest rates decline (whenever that might start!).

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 5 February 2007 the following Interest Rates applied:
Official cash rate 7.25% (stable)
90 day bill rate 7.69% (stable)
5 year bond rate 6.34% (up)
NZ/US Dollar 0.6825 (down from 0.6959)

Current Range of Interest Rates for home and investment mortgages as at 5 February 2007.

Floating:
8.50 to 9.95% (stable)

Fixed For:
1 Year - 7.85% to 9.19% (stable)
2 Year - 7.85% to 9.25% (stable)
3 Year - 7.85% to 8.97% (stable)
4 Year - 7.85% to 8.84% (stable)
5 Year - 7.75% to 8.90% (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.