Property

Fix for a year, rates heading lower

Property investors should fix their mortgages for no longer than a year, as interest rates extend their downward slide, according to ANZ Bank’s Property Focus.

Tuesday, September 30th 2008

The bank’s property gauges are a mixed bag in the latest month. Housing affordability is starting to improve as prices fall and mortgage borrowing becomes cheaper though it still has a way to go, according to the September edition of the report.

Migration, a source of housing demand, and supply-demand balance are treading water. On a global view, New Zealand property prices are not that cheap though they’re coming down.
     
Reserve Bank Governor Alan Bollard is set to lower the official cash rate by 50 basis points to 7% next month, ANZ predicts. Figures today showed home-building approvals fell to a 22-year low in August, reflecting an economy that probably in its third quarter of contraction.
     
“A patchy period of economic growth can be expected as the economic drivers switch from the spending to the earning side of the economy and the economy continues to rebalance,” ANZ’s economists said.
     
“The credit related economic slowdown that began in the US has spread to other corners of the globe and this presents a key risk for the New Zealand economy,” the bank said.
    
New Zealand's economy may have contracted 0.5% in the third quarter, according to the Bank of New Zealand, extending the first recession since 1998.

BusinessWire.co.nz

Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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