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  • Originally posted by Bluekiwi View Post
    NI I know you are living the "Six months fixed is the new floating" system, when you decide to break out of that when fixed rates start to go up, are you going into 2 year or 5 year ?

    I will probably go for 2 or 3 year rate in May-June-July, depends how the news pan out.

    Comment


    • Originally posted by Bluekiwi View Post
      Since no one can predict one day to the next, prediciting 2 or 5 years out isnt looking on the cards is it.
      You could have some at 2yrs and some at 5yrs and spread the risk.

      Comment


      • Originally posted by McDuck View Post
        Think about it, with 100 NZ tokens chasing 100 apples, the apples go for 1 token each.
        With 100 NZ tokens and 200 foreign tokens chasing 100 apples, the apples go for 3 tokens each.
        But only if people (the market) are willing to pay that. I.e. don't forget
        that demand may be contrained and the price may move accordingly.

        Are interest rate slow only because of the OCR? Are all the "we'll pay
        your fees"
        offers a part of responding to too many tokens not being
        taken by consumers? (Churn excluded)
        Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

        Comment


        • Originally posted by Perry View Post
          But only if people (the market) are willing to pay that. I.e. don't forget
          that demand may be contrained and the price may move accordingly.

          Are interest rate slow only because of the OCR? Are all the "we'll pay
          your fees"
          offers a part of responding to too many tokens not being
          taken by consumers? (Churn excluded)
          What did you mean by “interest rates slow”?

          Comment


          • A typo. (Note to self: pay attention next time.) Instead of
            . . . interest rate slow . . . try Are interest rates low only
            Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

            Comment


            • Originally posted by Perry View Post
              A typo. (Note to self: pay attention next time.) Instead of
              . . . interest rate slow . . . try Are interest rates low only
              You mean the banks 6% rates?

              Comment


              • No. The percentage is both irrelevant as
                well as relative, isn't it? Relative to market
                demand, the available amount of those
                tokens of yours, people's ability to pay,
                and so on. All are economic factors,
                n'est-ce pas? (isn't that so)
                Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

                Comment


                • Originally posted by NovInvestor View Post
                  It will be interesting to see how RBNZ tackles the housing bubble.
                  This amazes me, what bubble? The so called bubble that everyone says the RBNZ has to tackle is only affecting a very small minority. The bubble is occuring in two main areas, as I see, Central Auckland ( and some surrounding suburbs, definitely not south Auckland) and Christchurch to a smaller extent. What I have not heard anyone talk about is the rest of the country where there is no bubble but in the majority the exact opposite. Therefore why should the RBNZ and the Govt. move to put controls on the economy that will have an adverse effect on the majority. i.e. the other three million plus people that live outside of Auckland and have seen their propertries devalue or stay neutral?
                  Last edited by unhinged; 04-02-2013, 09:04 PM.

                  Comment


                  • Originally posted by Perry View Post
                    No. The percentage is both irrelevant as
                    well as relative, isn't it? Relative to market
                    demand, the available amount of those
                    tokens of yours, people's ability to pay,
                    and so on. All are economic factors,
                    n'est-ce pas? (isn't that so)
                    More than you’ll ever know.
                    Would I be correct in assuming 5.5% to be a average interest rate for the past 30 or so years?
                    So by that measure, we are running slightly above the usual?
                    Last edited by McDuck; 05-02-2013, 07:00 AM.

                    Comment


                    • Originally posted by McDuck View Post
                      Would I be correct in assuming 5.5% to be a average interest rate for the past 30 or so years?
                      Wouldn't think so.
                      5.5% is probably the lowest interest rate for the past 30 years.
                      We did hit over 20% for a while in the 80s.
                      The average might be 8-12%?

                      Comment


                      • Originally posted by unhinged View Post
                        What I have not heard anyone talk about is the rest of the country where there is no bubble but in the majority the exact opposite. Therefore why should the RBNZ and the Govt. move to put controls on the economy that will have an adverse effect on the majority. i.e. the other three million plus people that live outside of Auckland and have seen their propertries devalue or stay neutral?
                        This happened in the 90s - Auckland went through a little temporary spike and the rest of NZ flat-lined.
                        The Auckland papers and tv screamed 'housing bubble', the OCR was hiked up and everyone in NZ had their mortgage rates increased which seemed a bit unfair to people in Wellington and Christchurch.
                        It seems to me that that was a local problem that didn't deserve a national solution.
                        Will the Reserve Bank repeat that mistake?

                        Comment


                        • Originally posted by Bob Kane View Post
                          Wouldn't think so.
                          5.5% is probably the lowest interest rate for the past 30 years.
                          We did hit over 20% for a while in the 80s.
                          The average might be 8-12%?
                          I thought the average interest rate for the last 20 years was between 7.5% to 8%. Which is similar to what Bob is saying, as the 80s (30 years vs my 20)would push up his average.

                          Ross
                          Book a free chat here
                          Ross Barnett - Property Accountant

                          Comment


                          • Originally posted by Rosco View Post
                            I thought the average interest rate for the last 20 years was between 7.5% to 8%. Which is similar to what Bob is saying, as the 80s (30 years vs my 20)would push up his average.

                            Ross
                            That sounds like a better consensus. About 9% is what we can expect as a Commercial bank (mortgage) average then.

                            Perry, I’ve just seen the OCR referred to as “the benchmark interest rate”.
                            It’s currently sitting at a low 2.5%.
                            The historical OCR average is 8.2%.
                            (Once it got to a historical high of 67% in 1985)
                            Since this is the government’s tool to control the amount of economic activity, is this the interest rate you were referring to as “low”?

                            Comment


                            • Originally posted by McDuck View Post
                              Perry, I’ve just seen the OCR referred to as “the benchmark interest rate”.
                              It’s currently sitting at a low 2.5%.
                              The historical OCR average is 8.2%.
                              (Once it got to a historical high of 67% in 1985)
                              Since this is the government’s tool to control the amount of economic activity, is this the interest rate you were referring to as “low”?
                              ( Correct Wayne; as you mention....)
                              The OCR was introduced in March 1999 and is reviewed eight times a year by the Bank. Monetary Policy Statements are issued with the OCR on four of those occasions.
                              The average is around 6%
                              In June 08 it was at it's highest; 8.25%

                              www.rbnz.govt.nz/monpol/about/0072140.htm
                              Last edited by speights boy; 05-02-2013, 08:10 AM.

                              Comment


                              • Originally posted by McDuck View Post
                                (Once it got to a historical high of 67% in 1985)
                                It didn't exist in 1985.

                                Comment

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