Interest Rate Rises in NZ

Viewing 9 posts - 1 through 9 (of 9 total)

muppet
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@muppet
Join Date: 2003
Post Count: 900
May 11, 2004 - 9:20 am
Hi Guys
A big flurry of interest rate rises again tonight.
Westpac is leading the race(again). They have increased all their fixed rates which range from 7.1% for 6mths to 7.75% for 5yrs. Floating rate is also 7.75%.
I am sure all the major banks in NZ are sure to follow.
What with petrol at NZ$1.21.9(A$1.06) per litre for 91 octane, where are we heading?
Hopefully a big slow down in property and hence more bargains to acquire.
Regards
westan
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@westan
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Post Count: 1,950
May 11, 2004 - 9:32 am
Hi Muppet
i don’t think interest rate rises are planned but the Gov’t?? I must say i was surprised that i could get 5 year fixed rates with ANZ at 7.2% which was below the variable (that really is unusual).
So to see the Bank lift fixed rates doesn’t suprise me.
Do you read this action of Westpac as a sign that there will be a lift in official rates?
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
muppet
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May 11, 2004 - 9:47 am
Hi Westan
The fixed rates in NZ are governed by what the housing interest rates are in the USA. Their housing rates have been going up of late. So ours tag along as well.
The floating rate in NZ is governed by the 90 day bank bill rate which is at 5.5%.
The rest of the big banks will follow shortly like all good sheep do – follow the leader.
Regards
CastleDreamer
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May 12, 2004 - 6:49 am
Well gents, I am happy I have fixed in my interest rates for the next 18 months with my properties – rates between 6.8-7.05% will keep me happy!!
CD
CastleDreamer
westan
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May 12, 2004 - 7:37 am
Well done CD,
how many years at that rate ?
Muppet, thanks for that- are you saying that the interest rates in NZ are directly linked to USA, i wouldn’t have thought so. Surely it is the resevre bank or Governmnet that sets the rates?
regards westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
CastleDreamer
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May 12, 2004 - 8:07 am
One year only for a couple and thirty months for the duplex.
CD
CastleDreamer
CastleDreamer
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May 13, 2004 - 7:51 am
Yep,
and even with the rates that high, you can still get positive cash flow houses!!!!!
CastleDreamer
Henry_2
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@henry_2
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May 13, 2004 - 8:19 am
Hi CD,
Good point. Still good opportunities out there.
Henry
muppet
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May 13, 2004 - 8:45 am
Hi Guys
NZ has been leading the world for quite awhile now.
Just wait until the USA starts increasing their interest rate, you won’t see NZ’s for dust.
NZ’s interest rate will go up again next month and should be around 6% some time before Xmas.
I am glad I fixed my last two loans for 5yrs but have a couple due to be refixed in the next few months damn it.
Regards