Interest Rates

[Don't believe the Hype]

I do not want to spread panic, but here is a copy paste from an email from my BNZ bank manager:

investor loans were hit with higher rates in Aus about 12 months ago... Has little to no impact on the market and investors just took the hit... The banks have learned that can milk extra profits out of this so they're simply reapplying the Aus program here.

if I was a bank I'd do the same

[Judge]

Correct. Those who paid 6, 7, 8 percent before will not mind the new policy. But it does mean a change in dynamic in the market and also, perhaps time to fix?

[Don't believe the Hype]

Time to fix... Absolutely... If you haven't already you've likely missed the lowest longer term rates... But 5 years under 5% is great insurance.

[propertybuyingNZ]

So, FED just increased interest rate by 0.25% to 0 5%
Interesting times ahead

[BigDreamer]

So, FED just increased interest rate by 0.25% to 0 5%
Interesting times ahead

Yes, very interesting to know how this will impact investors in NZ...

[ivanp]

Yes, very interesting to know how this will impact investors in NZ...

FED interest rate hike already caused swap rates to rise, meaning NZ fixed term rates will also rise.

What's more important (and unexpected) is that FED suggested they see another 2-3 hikes next year, which probably means our fixed rates will increase by another 0.5-0.75% by the end of 2017?

Also RBA will probably follow FED later 2017 or in 2018, and then finally RBNZ will follow them by hiking OCR and therefore our floating rates. It also depends on when RBNZ realises how badly they underestimated inflation in their analysis.

[flyernzl]

All the banks have now reduced or pulled their sponsorship of the Property Investor Associations throughout the country.

Straws in the wind.

[Perry]

All the banks have now reduced or pulled their sponsorship of the Property Investor Associations throughout the country.

Straws in the wind.

Oh? Do explicate some, please.

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Just how a 0.25% increase can be called a hike, is beyond me.

I wonder how much of the Fed decision is a president-elect Trump reaction?

[Anthonyacat]

Oh? Do explicate some, please.

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Just how a 0.25% increase can be called a hike, is beyond me.

I wonder how much of the Fed decision is a president-elect Trump reaction?

Being fair Perry, what was the rate before, 0.5%? If so they just increased them by 50%. That's a hike in anyone's books.

[Perry]

Real or Fantasy Terms?

Lies, damned lies and statistics!

Years ago, I recall that Switzerland reported an annual increase in unemployment of 66%. Shock! Horror!

The contemporary figure was 5 people, whereas in the year before, it was three.

Nuff said?

[flyernzl]

Oh? Do explicate some, please.

The national partner of NZPIF is ANZ Bank.
Some local PIAs also partner with ANZ, others with BNZ.

In each case, we are getting feedback that either the bank has chosen not to renew the partnership on expiry of the partnership term, or has reduced their involvement down to the bare basics of the agreement.

The overall sense is that the property investment market has ceased to be their priority interest, and that they no longer wish to be seen as associated with organizations that operate within that market.

It does open the door to other financial organizations that do wish to partner - secondary financiers and /or mortgage brokers.

[Perry]

Thanks.

What was the PIA benefit from those 'partnerships?'

Fickle lot, aren't they?

[eri]

of the age

where nothing

satisfies?

[Judge]

Yes, i also noticed that someone is really grumpy. Cmon Perry. You used to write very constructive posts!

[Perry]

Such short memories. There was a reaction by banks to the last 'squeeze' and mortgage finance slowed. Also, Blenglish called for households to reduce their credit spending.

Then, not long afterwards, banks panicked when they realised there was likely to be a paucity of interest income from all those missed mortgages.

As commanded, consumer spending slowed, then Blenglish also panicked. Not that the reduced credit spending was the problem. No. Rather, it was because of the decline in tax revenue.

Then came the back-peddling.

What did they all learn, then?

Not much?

History repeats itself.

Ho-hum.