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  1. #21
    Join Date
    Jul 2011
    Location
    Tauranga
    Posts
    2,769

    Default

    Defence force used to have this deal prob still do.

  2. #22
    Join Date
    Jun 2005
    Location
    Auckland
    Posts
    5,087

    Default

    There is a comfort aspect to fixing for an extended period - you know what your major outgoing will be in to the future and this can make planning easier.
    DFTBA

  3. #23
    Join Date
    Oct 2006
    Location
    Auckland
    Posts
    570

    Default

    I have been offered 5.7% for 2 yrs and 6.8% for 5 yrs.

    FH

  4. #24
    Join Date
    May 2007
    Location
    Hamilton
    Posts
    3,684

    Default

    I heard something interesting about past 2 year rates last night at a Property Apprentice seminar, that backed up my thoughts that 2 year fixed is very dangerous.

    "A few years back (from my memory this was around 2005 or 2006) banks were fighting over 2 year fixed rates, and as a result there were some really cheap 2 year rates. A lot of investors jumped into these 2 year rates, and saved some interest for this period. Unfortunately when the 2 years were up, interest rates were now 9% and a lot of investors got caught out with these higher interest rates."
    Not sure where to start, book a free chat for 5-10 minutes https://cswaikato.co.nz/services-pro...s-hamilton/201
    Ross Barnett - Coombe Smith Property Accountants


  5. #25
    Join Date
    Jun 2004
    Posts
    10,637

    Default

    But that would require a crystal ball. With any fixed term the rates can change a lot while you are fixed. I suppose 2 years is just outside of the near term but not really long term.

  6. #26
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,942

    Default

    Its tending to look like fixing for 5 years could be a trap, and actualy fixing for 2 years could be a bigger trap, if rates rose significantly during that time.

    Think I will stick to floating.

  7. #27
    Join Date
    Mar 2008
    Location
    Auckland Wide
    Posts
    1,244

    Default

    I don't think the banks get together and design traps, they compete with each other for market share. ANZ just dropped their 2, 3, 4 and 5 year rates. But this might have more to do with competition and a change in attitude towards growth than a change in the cost of funds.
    Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
    My Website
    Be informed - register for our free monthly newsletter


  8. #28
    Join Date
    Jan 2004
    Location
    Whangarei
    Posts
    5,867

    Default

    All fixed rates are a trap. That's why they call them fixed rates.

  9. #29
    Join Date
    Jul 2010
    Location
    Auckland City, why invest else where?
    Posts
    984

    Default

    Quote Originally Posted by drelly View Post
    All fixed rates are a trap. That's why they call them fixed rates.
    Good one! =)

  10. #30
    Join Date
    May 2008
    Location
    Torbay, Auckland
    Posts
    3,942

    Default

    LOL, property investor humour, how geeky

    p.s. I like it !!!


 

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