News - 9 June 2008

The Alpha Update

Making Things Simple

Many people have created a financial maze with loans they have taken out over the past few years. A home loan, a couple of investment properties, maybe a beach property, all done at different times with different lenders. A review of the total picture is necessary every year or so, to make sure debt is structured correctly for maximum tax efficiency and minimum overall cost.

A client that I saw recently had 4 investment properties with 6 loans and had moved out of their own home to one of their rentals. A complete review of this situation provided simplicity of loan and security structures, whilst maximising the tax effectiveness of the borrowings.

Who do you know that needs a review like this from a finance professional?? Get them to call Us Today on 021 676 747 or 0800 676 747. We Can Help!!

Food for Thought

Success is a lousy teacher. It seduces you into thinking that you cant fail! Bill Gates

What's New??

• A new source of Plant, Equipment and Vehicle Finance!

• A free 'site check' service if you have a property may have development potential. Grange Consultants Ltd will offer this service to my valued clients

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

How quickly things can change.... With a positive timeframe for interest rate reductions announced by the Reserve Bank last week, interest rates fell across the board. Long term rates particularly have seen sharp declines - 0.2% to 0.3% in many cases. With 2 year rates at 9.2% and 5 year rates at 9.1%, there is little reason to fix for an extended period at present.

A complete reversal from last time's commentary, with the kiwi falling against all of our trading partners. This was due to clear signs that our interest rates will be coming down soon, making us a less attractive place to invest. The kiwi has fallen 2 cents against both the US dollar and the aussie since last week. Further falls are likely although timing is uncertain.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 9 June 2008 the following Interest Rates applied:
Official cash rate 8.25% (stable)
90 day bill rate 8.69% (stable)
5 year swap rate 7.52% (down)
NZ/US Dollar 0.7688 (down)

Current Range of Interest Rates for home and investment mortgages as at 9 June 2008

Floating:
9.80 to 11.50% (stable)

Fixed For:
1 Year - 9.30% to 10.95% (stable)
2 Year - 9.15% to 10.65% (down slightly)
3 Year - 9.09% to 10.85% (down slightly)
4 Year - 9.00% to 10.35% (down)
5 Year - 9.05% to 10.69% (down)

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.