Interest Rates

[speights boy]

If someone undertakes a private lending arrangement with a bank, what business is it of the Govts?

That would be Policy Targets Agreement between the Minister of Finance and the Governor of the RBNZ under section 9 of the Reverse Bank of New Zealand Act 1989.

[Perry]

The talk is all about distraction, of course. It's the usual political fug of trying
to make a smokescreen so the rest can be duped. Blame the banks; blame the
overseas aspects of the GFC; blame property investors; blame councils; blame
developers; blame anyone, as in anyone else. Never consider, much less admit,
that the problems may be the government's fault - oh, no.

[speights boy]

Never consider, much less admit,
that the problems may be the government's fault - oh, no

So Perry; the solution is....?

[Perry]

There is no solution possible with the people
available: both elected and constituents.

[speights boy]

Thank you Perry.
I am sure you will continue to blame the politicians, including coming up with amusing names.
Meanwhile, away from the affects of your keyboard the RBNZ continue under the terms of its PTA.

[Perry]

And who writes such things if not the politicians?

This country (like many) has no leaders. Rather,
we have venal politicians with an army of cheek-
by-jowl sycophantic politicians' servants.

All that is needed for the status quo to remain is
for the child to avoid saying that the King has no
clothes on. Instead, we'll all play: let's pretend.

I suspect most PIs just 'get on with it.' It's quite
likely you're in that group too. But we don't close
our eyes to the fatuous and idiotic around us. Be
they local or national governments.

Here's a challenge for you: do buildings wear out
and depreciate? If so, why did Blenglish say that
they didn't and remove the depreciation allowance?

Do buildings cease to age and depreciate because
Blenglish said so?

[speights boy]

This country (like many) has no leaders. Rather,
we have venal politicians with an army of cheek-
by-jowl sycophantic politicians' servants.

Perry, please don't sugar coat it.
Tell us what you really think.

[Perry]

I don't see an interest in it.
Or my question to you.

[speights boy]

I don't see an interest in it.

Excellant.
My work here is done.
For Hound; just in case you missed it in all the fug.

That would be Policy Targets Agreement between the Minister of Finance and the Governor of the RBNZ under section 9 of the Reverse Bank of New Zealand Act 1989.

[Keys]

The talk is all about distraction, of course.

What's the bet we have a republic debate or flag debate before the next election?

[ithink]

Kiwibank, HSBC doing some good interest rates at the moment....

What do you think about the current rates guys? 4.79% for 6 months @ Kiwibank and 4.99% for 1/2/3 years @ HSBC...!?

Not sure if HSBC is open to all though? Also, is it a good idea to go for the 2 and 3 year fixed terms in current environment?

Just asking for your thoughts of course...!

Cheers!

[skid]

Just be aware that hsbc more than made up for the cheap initial fixed rate with their refusal to negotiate on latter occasions.
With our National bank mortgage,they were happy to negotiate and were much more customer friendly.
I would definitely lean toward Kiwi Bank out of the two.

[Gladdynook]

Westpac offered me 4.65% for 1 year, 4.89% for 2yrs, and 5.65% for 5yrs last week, so they are keen to do deals also!

[Rosco]

Westpac offered me 4.65% for 1 year, 4.89% for 2yrs, and 5.65% for 5yrs last week, so they are keen to do deals also!

Nice rates!

There is lots of other info and some good videos on this site about interest rates and spreading. But I'll also add some points quickly again.

- 6 months I think is a bit short
- I like to spread loans, so that they come up at different times.
- Some short term to take advantage of 4.65% rate. Maybe 50% of loans, or else 1/3rd
- Some long term to give certainty. Maybe 50% of loans at the 5.65%.
Means overall averaging 5.15% on your figures, which is great with half protected for 5 years.
Some people like 1/3rd, 1/3rd and 1/3rd. ie 1 year, 2 or 3 year and 5 year.

Don't float!!! 5.75% or 6.24% for Westpac is not a good rate. And realistically everyone who is floating will still be floating in one years time, so why not fix for 1 year and save.

Interest is a property investors biggest cost so it is important to consider carefully and have a strategy

Ross

[Gladdynook]

Rosco, you picked exactly what I've gone for! 1 year and 3 year at 50% each.