Comments on: Rate cut good news http://www.landlords.co.nz/blog/rate-cut-good-news A blog for New Zealand landlords and property investors Thu, 02 Feb 2012 03:38:09 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Hamish http://www.landlords.co.nz/blog/rate-cut-good-news/comment-page-1#comment-772 Hamish Fri, 08 May 2009 00:28:52 +0000 http://www.landlords.co.nz/blog/?p=168#comment-772 Just a thought what if I listened to a person's advise and went on floating for a couple of years. And what if the long term fixed rates jumped up towards the end of the first year. Like really jumped up, to like double digits. Would it have been a wise strategy? The problem is when one decides that they some how know what might happen in the future. We all know that even with a masters degree your chances of predicting the future is still similar to that of a gypsy. Just a thought what if I listened to a person’s advise and went on floating for a couple of years. And what if the long term fixed rates jumped up towards the end of the first year. Like really jumped up, to like double digits. Would it have been a wise strategy? The problem is when one decides that they some how know what might happen in the future.

We all know that even with a masters degree your chances of predicting the future is still similar to that of a gypsy.

]]> By: Martin Braunton http://www.landlords.co.nz/blog/rate-cut-good-news/comment-page-1#comment-771 Martin Braunton Thu, 07 May 2009 21:12:13 +0000 http://www.landlords.co.nz/blog/?p=168#comment-771 "Since the previous OCR cut on March 12, many borrowers rushed to fix for three, four and five years in the fear long-term rates had already bottomed out. This will prove to be not such a good strategy. It was an odd-move by many as long-term rates had risen to be near historical averages and that picture didn’t fit into the current lower rate environment." Are you sure about this? 5 year fixed rates are already rising - I wish I had fixed last month. I hope I am wrong as my 3 year home loan ends this year. What likelihood is there that the 5 year is likely to come down? Tony Alexander's latest weekly report indicates that this is unlikely and best to fix short term. “Since the previous OCR cut on March 12, many borrowers rushed to fix for three, four and five years in the fear long-term rates had already bottomed out. This will prove to be not such a good strategy.

It was an odd-move by many as long-term rates had risen to be near historical averages and that picture didn’t fit into the current lower rate environment.”

Are you sure about this? 5 year fixed rates are already rising – I wish I had fixed last month. I hope I am wrong as my 3 year home loan ends this year. What likelihood is there that the 5 year is likely to come down? Tony Alexander’s latest weekly report indicates that this is unlikely and best to fix short term.

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