House Prices

Why risk and return go hand in glove - Mary Holm

Q. I am considering investing with a finance company, but I keep getting told that the higher the interest rate, the higher the risk.

Everyone I ask says, "Yes, that's true", but no one can really tell me why that is true.

It is a bit like believing that the sun comes up in the east - which is not true, if you think about it.

It seems to me that the su

Monday, April 26th 2004

ccess or failure of any business is entirely dependent on the quality of the people running the business.

I keep reading about many apparently substantial companies losing their investors' money, so what to do?

I would appreciate your comments on why the term "the higher the interest rate, the higher the risk" seems to be perceived as always being true.

A. First, let's look at your statement about business success depending on the quality of the people.

It's true that every move a company makes is made by people. But some highly intelligent and honourable people have made what turned out to be terrible business decisions. There's got to be an element of luck in there.

Read More - Opens in a new window
Unity First Home Buyer special 3.99
ICBC 4.25
SBS FirstHome Combo 4.29
Co-operative Bank - First Home Special 4.35
Co-operative Bank - Owner Occ 4.45
TSB Special 4.49
ANZ Special 4.49
ASB Bank 4.49
SBS Bank Special 4.49
Unity Special 4.49
Westpac Special 4.49
Westpac Special 4.45
BNZ - Std 4.49
Kiwibank Special 4.49
TSB Special 4.49
ANZ Special 4.49
ASB Bank 4.49
Co-operative Bank - Owner Occ 4.49
ICBC 4.59
Wairarapa Building Society 4.59
SBS Bank Special 4.65
Unity Special 4.65
SBS Bank Special 4.99
Westpac Special 4.99
ICBC 4.99
BNZ - Std 4.99
ASB Bank 5.15
Co-operative Bank - Owner Occ 5.19
ANZ 5.39
AIA - Go Home Loans 5.39
TSB Special 5.39
Kiwibank Special 5.39
Kainga Ora 5.49
SBS Construction lending for FHB 3.74
CFML 321 Loans 4.25
AIA - Back My Build 4.44
Co-operative Bank - Owner Occ 5.30
Co-operative Bank - Standard 5.30
ICBC 5.39
Heartland Bank - Online 5.45
Kiwibank - Offset 5.80
Kiwibank 5.80
ANZ 5.89
TSB Special 5.94

More Stories

Capital gains tax almost irrelevant – English

Monday, October 20th 2025

Capital gains tax almost irrelevant – English

Former Finance Minster Bill English says the days of guaranteed capital gains in the housing market are over,

Thursday, October 09th 2025

New rules for meth contaminated houses

REINZ welcomes regulation of methamphetamine contamination in rental housing.

Spending confidence low and likely to fall further

Thursday, September 18th 2025

Spending confidence low and likely to fall further

More than 40% of households who took part in the latest Westpac McDermott Miller Consumer Confidence say their financial position has deteriorated over the past year.

Four decades of 6-7% yearly house price growth ending

Friday, March 21st 2025

Four decades of 6-7% yearly house price growth ending

New Zealander’s reliance on property capital gains in the mid-single digits is at an end.