News -7 November 2005

Interest Rate and Currency Comments

Interest rates have risen across the board in the last 2 weeks, driven by two factors. Firstly, the Reserve Bank of New Zealand increased the cash rate by 0.25% and added a very stern warning that, unless it can see inflation moderating, it will continue with the rises. Because of this, commentators are predicting another increase in the cash rate before Christmas, and the strong potential for another one in January 2006. The second factor has been continued increased in both short and long term interest rates in the US. US long term yields are up by around 0.25% over the past month, which has flowed on to increases in our longer term fixed rates here.

Call me NOW to find out what you can do in this rising interest rate market!!!

The differential between NZ interest rates and the US is reducing. Our total overdraft with the rest of the world has also grown rapidly, as we spend more than we earn. These two factors will see a sharp drop in the kiwi once it becomes clear that our interest rates have stopped rising. The only question is when........

(See below for latest interest and exchange rates).

Food for Thought

The first step to getting what you want is to decide what you really want!

Problem Profile

Owner Occupied Commercial Property

In recent times, I have had a number of clients looking to buy a commercial property for their own occupation. Many had never bought a commercial property before, and thus needed some guidance through the process. Given my background in both residential AND commercial lending, I was able to not only guide them through the process smoothly, but also structure their lending in the most cost and tax effective manner. There are a number of pitfalls for the unwary, so BEFORE you think about purchasing your own commercial premises, give me a call to talk things through. (the phone call is FREE)

WHO DO YOU KNOW who is thinking about buying their own commercial premises???

Get them to call Stuart Duncan at Alpha Financial Solutions Ltd on 0800 676 747 to discuss their plans NOW!

The Finance Markets

As of 8am on Monday 7 November 2005 the following Interest Rates applied:
Official cash rate 6.75% (stable)
90 day bill rate 7.32% (up)
5 year bond rate 5.98% (up from 5.95%)
NZ/US Dollar 0.7003 (up from 0.6979)

Current Range of Interest Rates for home and investment mortgages as at 7 November 2005.

Floating:
9.25% (stable)

Fixed For:
1 Year - 8.25% to 8.35% (up slightly)
2 Year - 8.05% to 8.20% (up slightly)
3 Year - 7.95% to 8.00% (stable)
4 Year - 7.85% to 8.05% (up)
5 Year - 7.75% to 7.90% (up)

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.