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  • Talking with my local westpac banker on rates I see I could get 5.2-5.3% on a 5yr fixed am I right thinking longer term rates getting pushed down over the last few months my floating rate has been pushed higher twice in only couple of months

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    • Originally posted by JBM View Post
      Talking with my local westpac banker on rates I see I could get 5.2-5.3% on a 5yr fixed am I right thinking longer term rates getting pushed down over the last few months my floating rate has been pushed higher twice in only couple of months
      Long term rates jumped in Dec - Feb period from around 4.8%ish to 5.2-5.4% range... they've moved sideways since then.

      Comment


      • Originally posted by Don't believe the Hype View Post
        How happy would the punters be if they locked 30 years back in 2010 at 9% -

        The rules of the game are known and people can make their own decisions (and commitments) based on what is know.

        In my opinion, issues arise when regulatory bodies try to 'fix' short term or 'populist' issues with rule changes that benefit some but impact all.
        People weren't happy locked for 3-5 yrs back then - all the angst here on break fees and chasing lower rates.
        How quickly people forget.

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        • Originally posted by JBM View Post
          Talking with my local westpac banker on rates I see I could get 5.2-5.3% on a 5yr fixed am I right thinking longer term rates getting pushed down over the last few months my floating rate has been pushed higher twice in only couple of months
          In Tony Alexander's latest missive he suggested plan for 2% increase in the next couple of years.
          If I were borrowing I’d be factoring in a broad 2%
          rise in my borrowing costs in a couple of years
          time. If you want something more specific than
          that then you still haven’t taken on one of the key
          messages we have been delivering here for some
          seven years now (one message being upward
          pressure on house prices, another upside risk to
          migration flows). Interest rate predictability went
          out the window with the GFC.

          Comment


          • Originally posted by exnzpat View Post

            Imagine, if you will, Kiwi Bank offering a 30-year fixed rate based on today’s interest rate. In other words, your interest rate is set today and will not change, regardless of market forces, over the next 30 years.
            So you are asking the taxpayer to go guarantor on peoples housing loans?
            (Admittedly that used to be the case. My sister and her husband got a 25 year loan fixed at 3% through the State Advances Corp for her first house back in 1965).

            Originally posted by exnzpat View Post
            The government’s sole responsibility is to a stable economy and to
            offer up economic fairness to the New Zealand people
            Are you serious?
            What about civil order, a justice system, good roads, clean water supply and so on?

            Originally posted by exnzpat View Post
            As a people of a nation we have a responsibility to provide a fairness
            to all.
            Why? Where is that written in tablets of stone?

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            • Originally posted by Don't believe the Hype View Post
              How happy would the punters be if they locked 30 years back in 2010 at 9%.
              I can easily remember when 9% was a dream low rate. Anyone want that now?
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              • Originally posted by exnzpat View Post
                You may scoff. But simply ask your parents and grandparents what interest rates were in the 1980’s, and they’ll tell you how it once was.
                Don't forget to ask them what the inflation rate was, and what the pay rises they were getting at work were. Also, don't forget to ask them how easy it was to find a job, and how much their student loan repayments cost them.

                Interest.co.nz recently had a graph that shows that the 'real' interest rate was actually negative for most of the 70's and the early 80's, due to inflation being higher. Right when most of the baby boomers were buying their first homes.

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                • Originally posted by exnzpat View Post
                  The easiest and fairest way to force competition into the private housing sector is for the government to directly compete against private (Australian) banks.

                  Imagine, if you will, Kiwi Bank offering a 30-year fixed rate based on today’s interest rate. In other words, your interest rate is set today and will not change, regardless of market forces, over the next 30 years.
                  That's the old SAC (State Advances Corporation) model, re-visited. 3% for the life of the loan.
                  Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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                  • Originally posted by brokerman View Post
                    Yep and they now won't lend on apartments under 65 sm.
                    Thats news to me ---i thought 45-50 sm was the minimum for 1bedroom apartments.Can you please give us more info on this new rule change
                    thanks in advance
                    David

                    Comment


                    • Originally posted by d2ba View Post
                      Thats news to me ---i thought 45-50 sm was the minimum for 1bedroom apartments.Can you please give us more info on this new rule change
                      thanks in advance
                      David
                      This is only a BNZ change. Other banks will still lend on properties at 45m2 - if you present the right deal to a bank they can bend these rules sometimes
                      Your Home Loan - Wellington Mortgage Broker
                      [email protected]

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                      • Originally posted by Keys View Post
                        I can easily remember when 9% was a dream low rate. Anyone want that now?
                        I'll take it now as long as I pay the same price for the property as what people where asking when the interest rate was 9%.

                        I've been meaning to sit down and figure out the total cost of ownership for a property to look at the total cost. $400,000 @ 9% is the equivalent of $600,000 @ 5%(both $1,158,000 over 30 years)

                        Comment


                        • Originally posted by Wellington Broker View Post
                          This is only a BNZ change. Other banks will still lend on properties at 45m2 - if you present the right deal to a bank they can bend these rules sometimes
                          Yep, only BNZ. Others reviewing Apartment lending, some maybe to the positive!
                          www.ilender.co.nz
                          Financial Paramedics

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                          • Originally posted by Dunning View Post
                            I'll take it now as long as I pay the same price for the property as what people where asking when the interest rate was 9%.

                            I've been meaning to sit down and figure out the total cost of ownership for a property to look at the total cost. $400,000 @ 9% is the equivalent of $600,000 @ 5%(both $1,158,000 over 30 years)
                            So do you think if interest rates hit 9% again property will be devalued as per formula above? I was thinking commercial property in particular?

                            Comment


                            • Originally posted by Dunning View Post
                              I'll take it now as long as I pay the same price for the property as what people where asking when the interest rate was 9%.

                              I've been meaning to sit down and figure out the total cost of ownership for a property to look at the total cost. $400,000 @ 9% is the equivalent of $600,000 @ 5%(both $1,158,000 over 30 years)
                              I worked out a while back that a 10% increase in IR would negate a 10% drop in values - ie the servicing cost is the same.
                              Free online Property Investment Course from iFindProperty, a residential investment property agency.

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                              • Originally posted by exnzpat View Post
                                Erewhon is still erehwon, I don’t see it changing anytime soon..
                                exnzpat!
                                Welcome back.
                                I thought you were killed by a rabid dog in north Canada?

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