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  • You would have thought that ANZ would have offered their very best rate - they almost had a captive audience.
    They certainly get a lot of exposure.
    I suppose these days they are just paying NZPIF out of the advertising budget.

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    • It appeared at the time it was just a marketing opp for them Wayne. They never really embraced the idea of actually becoming the investors preferred bank.

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      • In the past 8 months westpac and ANZ have swapped places when comes to interest rate and lending competitiveness.

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        • RBNZ made the capital requirement changes last November - banks now need to hold more capital for residential investment property loans.

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          • The best clue to working out if we could get a better deal is to lòok at the syndicate loans
            But the problem is how the guarantees work and the tendencies to have lower borrowing ratios with some of these larger loans (less than 50pc)

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            • Wayne, can you give some link? Cause last time I checked RBNZ so far only requires banks to establish which loans are to investors, and haven't required to hold more capital yet (I didn't find such announcement on RBNZ web site)

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              • No I can't - that's what my Westpac banker told me just now when I asked him.
                I'll get a few more details on what it means when I have coffee on Friday.

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                • Seems I can. Try this from the RBNZ
                  http://www.rbnz.govt.nz/regulation-a...ision-handbook
                  It is up to the bank on how or if they apply higher interest rates (given the higher cost of capital) - so long as they maintain the required capital.
                  Last edited by Wayne; 18-05-2016, 02:12 PM.

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                  • Hi guys, can anyone tell me an investor friendly bank for 'commercial property' & their LVR & est. rates.

                    Westpac seem keen on this lending but I don't yet know specifics on rate & lvr yet. Loan is currently with BNZ (however I want to refinance out as BNZ have hook over PP which I can remove once loan is refinanced).

                    Also worth adding my business banker for WP has been good to deal with & sorts matters quickly, however last 2 loans this year with ANZ have been painfully slow with very lengthy process!! I won't use ANZ for next deal!

                    Cheers

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                    • I just can't see higher rates for a very long time ..so wouldn't stress on missing out on these record low rates .....it's the new normal...or you could say the old normal

                      -----------------------------------------
                      In 1920, borrowing costs soared to their highest levels since the end of the Civil War. Some people were terrified of what it was doing to the economy. Higher rates “would practically legalize usury,” a real estate trade group warned. A Democratic senator complained that “manufacturers, merchants and businessmen are entitled to stability” after a steep rise in rates. The Federal Reserve was “confronted with conditions more or less abnormal,” acknowledged a governor of the central bank, William P. G. Harding.

                      The interest rate that caused this anxiety? A mere 5.4 percent on the 10-year United States Treasury note — lower than the rates during the entirety of the 1980s and most of the 1990s.


                      What does this have to do with the Fed’s likely move this week? For years, financial commentators have been predicting an imminent rise in rates. After all, goes the theory, the Fed has been engaged in extraordinary interventions to artificially depress the cost of borrowing money. Surely those rates will snap back to their pre-2008 levels, if not rise higher. If that happens, get ready for double-digit mortgage rates and a substantially higher cost to maintain the government debt.

                      But if you look at the longer arc of history, a much different possibility emerges. Investors have often talked about the global economy since the crisis as reflecting a “new normal” of slow growth and low inflation. But, just maybe, we have really returned to the old normal.

                      Very low rates have often persisted for decades upon decades, pretty much whenever inflation is quiescent, as it is now. The interest rate on a 10-year Treasury note was below 4 percent every year from 1876 to 1919, then again from 1924 to 1958. The record is even clearer in Britain, where long-term rates were under 4 percent for nearly a century straight, from 1820 until the onset of World War I.

                      The real aberration looks like the 7.3 percent average experienced in the United States from 1970 to 2007.


                      full copy here

                      http://www.nytimes.com/2015/12/15/up...ound.html?_r=0
                      Last edited by JBM; 18-05-2016, 09:40 PM.

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                      • Also USD is not tied to gold anymore, it's all imaginary money, made up, magic.

                        So if rates go up, print more!

                        Well since rates are low, print anyways!

                        Underlying problem is inflation, and more importantly, threat of deflation.

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                        • Banks propensity to lend is driven by corporate targets and strategies and for at least one of the banks I deal with growth targets are set regionally. So if a bank in a particular region is hitting their lending targetes they're less likely to offer competitive rates. Simply talking to same bank in a different region may result in a better offer.

                          Remember they are a business who answer to shareholders they are not their for your benefit or mine!

                          Comment


                          • Originally posted by ivanp View Post
                            I guess it's more likely than the debt-to-income limits discussed in media. Because it makes sense and will have the desired effect of cooling down (domestic) investors. Unlike the debt-to-income limit which just kills any financial leverage if applied uniformly to owner-occupiers and investors as discussed.
                            Are you seriously suggesting that higher rates for investors as proposed by RBwill cool the market? I do not think it will make any difference. All investors know rates can go up or down. So if rates go up (even if only for investors rather than the whole population) we are prepared. I bought most my properties when rates where about 7 percent. Now i am paying 4%. If the bank increases my rate by 50 points, is it going to stop me? No. At the moment anyway by increasing my rate the bank will be reducing the windfall i am getting from the reduced rates.
                            I believe most long term investors are doing their numbers on the basis that the rate will eventually go back to 7%, so a 25-50 basis points increase because of reserve bank rules will make no difference to them. Short term investors do not care about current rate if they are hoping to get 20-30% profit on a quick flick. they will not care that they pay 25-50 points more than home owners.
                            In my view the new RB rules will have two results. First it will give the banks an excuse to screw investors (as expected Westpac has seized the opportunity already!). Second, it will give landlords and excuse to raise rents. One thing is guaranteed - it will not cool the market. Banks will get richer, investors better off or indifferent, and Joe Public will be in the same old predicament - high property prices. That is until the supply side of the property market is fixed.

                            Comment


                            • Originally posted by Judge View Post
                              Are you seriously suggesting that higher rates for investors as proposed by RBwill cool the market? I do not think it will make any difference. All investors know rates can go up or down. So if rates go up (even if only for investors rather than the whole population) we are prepared. I bought most my properties when rates where about 7 percent. Now i am paying 4%. If the bank increases my rate by 50 points, is it going to stop me? No. At the moment anyway by increasing my rate the bank will be reducing the windfall i am getting from the reduced rates.
                              I believe most long term investors are doing their numbers on the basis that the rate will eventually go back to 7%, so a 25-50 basis points increase because of reserve bank rules will make no difference to them. Short term investors do not care about current rate if they are hoping to get 20-30% profit on a quick flick. they will not care that they pay 25-50 points more than home owners.
                              In my view the new RB rules will have two results. First it will give the banks an excuse to screw investors (as expected Westpac has seized the opportunity already!). Second, it will give landlords and excuse to raise rents. One thing is guaranteed - it will not cool the market. Banks will get richer, investors better off or indifferent, and Joe Public will be in the same old predicament - high property prices. That is until the supply side of the property market is fixed.
                              This. Supply is key and until this is readdressed prices and rent will rise. Basic economics.
                              www.ilender.co.nz
                              Financial Paramedics

                              Comment


                              • Originally posted by Don't believe the Hype View Post
                                Banks propensity to lend is driven by corporate targets and strategies and for at least one of the banks I deal with growth targets are set regionally. So if a bank in a particular region is hitting their lending targetes they're less likely to offer competitive rates. Simply talking to same bank in a different region may result in a better offer.

                                Remember they are a business who answer to shareholders they are not their for your benefit or mine!
                                They may answer to shareholders but they don't value them(Or their own bank!!)...

                                As in talking with a business banker recently round owning a shareholding in the bank (which also pays a gross 7% dividend) "what the bank would value that investment at" ...reply no much 5%-6% etc so a position in the likes of ANZ etc.... has a value in that banks eyes of less than even the dividend paid in one year ??

                                Now I know it's a sharemarket thing and banks just hate the equity market ...but it's kind of stupid >> they will give you great high value for pretty much any residential property that may well be a P-Lab if debt free ....but next to nothing for a muti-billion cap diverse loan -savings business with long history of making billions in EBIT and paying divies for decades ...
                                Last edited by JBM; 18-05-2016, 10:40 PM.

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