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  • Originally posted by Wayne View Post
    Money is money mate.
    Having to give it back is then lost money - it is a cost!

    While it may be something for nothing once you have it it is something.
    Wayne, I know repaying money is not fun, but we are businessmen (and businesswomen). A kid who gets a sweet and then is asked to return it may cry about it. We, however, should not be getting upset when we need to repay a cashback. In the P&L it will be money coming in and going out, so overall impact on the business is $0 (unless you already paid tax to the IRD). A real cost to your business will be money that you that you pay out of your own pocket or profit. Refunding a gift because you want to break a contract and go to another bank where you get a better deal has got to be treated differently from having to pay your own money, doesn't it?

    Comment


    • Originally posted by Judge View Post
      Wayne, I know repaying money is not fun, but we are businessmen (and businesswomen). A kid who gets a sweet and then is asked to return it may cry about it. We, however, should not be getting upset when we need to repay a cashback. In the P&L it will be money coming in and going out, so overall impact on the business is $0 (unless you already paid tax to the IRD). A real cost to your business will be money that you that you pay out of your own pocket or profit. Refunding a gift because you want to break a contract and go to another bank where you get a better deal has got to be treated differently from having to pay your own money, doesn't it?
      Sorry but the cash back is part of the deal - it isn't a Xmas gift.
      Money is money - I had $7k and now I don't.
      $7k - tax is a loss to my business!

      Another way to look at it is if you had 2 Interest offers and one came with $7k cash back would you ignore it because it is 'free' money so has no value?
      Of course you wouldn't.

      Comment


      • You missed my point Wayne. You get a deal from BNZ to take $1m loan and commit to BNZ for 4 years and you get $10k cash back. Next Day ANZ comes to you and gives you a better rate for same million dollars, so you decide to break your commitment to BNZ and have to repay $10k. Ignoring any cost of tax you may have incurred are you saying you are cash neutral as far as BNZ transaction is concerned. And you are getting a cashback from ANZ and a better rate.

        Contrast this with a "real cost" (something many of us faced when we fixed long term a couple of years ago in the era of "no cashbacks"). Say I fixed with BNZ 3 years ago at 7% for 5 years. I have 2 years to run on my 7% rate and I want to break. The cost of braking (say $10k) will be just money out of my pocket. Not refund of cash back. Very different concept in my mind anyway.

        Comment


        • Originally posted by Wayne View Post
          Money is money - I had $7k and now I don't....

          Another way to look at it is if you had 2 Interest offers and one came with $7k cash back would you ignore it because it is 'free' money so has no value?
          Of course you wouldn't.
          Bank A says "come play at my house and I'll give you $7K". You take the $7k and take your toys to Bank A's house. Then bank B says "come play at MY house and I'll give you $10K!" You give back the $7K to bank A and go for a playdate with bank B.

          You haven't lost $7K, you've gained $3K. If the deal wasn't of benefit to you you wouldn't switch. It's not a loss if you're better off.

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          • Thanks Learning. Exactly my point.

            Comment


            • Originally posted by Judge View Post
              You missed my point Wayne.
              You are right - I did.
              You see I would just add up what I have to pay (break fee and pay back the 'bonus') and what I get (cheaper interest and a gift) and work from there to see if it is worthwhile.
              So that would be
              pay $29k to bank (break fee $22k and gift $7k)
              get $15k gift and $28k less interest over a year.

              By my reckoning about $14k better off. Maybe more if you make it the 18 month till the end of next year.

              Comment


              • The Reserve Bank has kept the official cash rate on hold this morning.

                It currently sits at 2.25 per cent - a record low for New Zealand.
                Six weeks ago the Bank surprised many when it cut rates.
                While another cut is expected soon, most analysts expect it to come later in the year.
                http://www.nzherald.co.nz/personal-f...ectid=11630027
                Last edited by muppet; 28-04-2016, 10:11 AM.
                "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

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                • Negative Interest rates

                  Interesting newspaper article today (Weekend Australian 14-15 May P35)
                  "Global returns and interest rates are so low that in Denmark borrowers are finding their mortgage balances are declining , even without making payments because interest rates are negative."

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                  • Kiwibank 3.99% fixed for 2 years. How low can it go is a big question

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                    • ^

                      http://www.theaustralian.com.au/busi...94f60dbc2f635f
                      have you defeated them?
                      your demons

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                      • If kiwibank can offer 3.99% for 2 years.

                        That means rates will drop more.

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                        • Hold on for a bit longer guys. Soon we will be paid money to borrow. http://www.wsj.com/articles/the-upsi...tes-1460643111

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                          • Originally posted by Gary Lin View Post
                            If kiwibank can offer 3.99% for 2 years.

                            That means rates will drop more.
                            Probably but you do know the Kiwibank rate is on offer for 2 weeks only so is a teaser?

                            Comment


                            • Originally posted by Wayne View Post
                              Probably but you do know the Kiwibank rate is on offer for 2 weeks only so is a teaser?
                              HSBC has been offering 3.95% for a year for a long while.

                              So it can be done, it just depends how hungry the banks are.

                              Comment


                              • Originally posted by Gary Lin View Post
                                HSBC has been offering 3.95% for a year for a long while.

                                So it can be done, it just depends how hungry the banks are.
                                Don't disagree.
                                HSBC have very specific rules on their offering also and it ends 20th May.

                                My comment on your Kiwibank post was that it is not the new 'normal' but a teaser.

                                Comment

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