Welcome to October's edition of AMS's Property Gazette.
The Rugby World Cup is up and running and although Dan Carter is now out for the rest of the tournament, I think we have a great chance at winning the competition. Despite this distraction real world events keep on moving. Please read on for the latest interest rate and property information.
Current Interest Rates as at 3rd September 2011
Variable 5.60%
6 Month Fixed 5.60%
1 Year Fixed 5.75%
2 Year Fixed 6.20%
3 Year Fixed 6.70%
5 Year Fixed 7.40%
Variable 5.60%
6 Month Fixed 5.60%
1 Year Fixed 5.75%
2 Year Fixed 6.20%
3 Year Fixed 6.70%
5 Year Fixed 7.40%
Interest Rate Outlook
Occasionally distance can be your friend, and being a little isolated and removed from the debt crisis fallout in Europe is certainly a good thing at this moment.
However while activities in these larger markets do have an impact on our funding cost, the severity of their impact is lessened. Nonetheless, the financial mess that is Europe is likely to see New Zealand’s Official Cash Rate held at its current low level until first quarter of 2012.
Locally, while the property market remains flat it is being readied for a strong 2012 on the back of the Christchurch rebuild and we are already starting to see positive signs in the Auckland market with well-priced houses moving quickly.
Of course we are half way through one of the strongest economic spending booms New Zealand has seen over the last 5 years thanks to the Rugby World Cup. But this spending is fleeting relief at best, and is seen as a temporary good-time blip; however it does clearly add fuel to our positive growth.
With the developing events in Europe one could argue that remaining on the floating interest rate is a good thing. I agree to a point, but only to a point. We have seen massive swings in financial markets recently, with large losses and gains happening almost daily.
However, the above strategy does come with a caveat. You need to keep your eyes and ears open for when interest rates do start to move. New Zealand is experiencing record lows in regards to interest rates and at some point it will be wise to lock in a fixed term before we see sharp rises in interest rates.
What’s Hot
There is only heat on one thing at the moment, the mighty All Blacks, even non rugby followers cannot help but be caught up in the hype that is RWC, and haven’t we as a country done ourselves proud, it is great to see how we have embraced the tournament – Go The AB’s!
Deal of the Month
Last month I had a client who had a black marks on their credit check & had been told ‘No’ by a number of banks, I managed to paint a clear picture of the circumstances for the bank and had her approved before long, saving a house sale for our referring agent - call us we deliver!
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