If they do, I don't think they'll go as high as 0.5% next time.... more than likely, they'll do either nothing or 25 basis points.
Then again... I didn't think they'd go last month so WTF would I know!!!
Politics 🗳️ NZ Politics
- Thread starter wizard of Tauranga
- Start date
NZWarriors.com
I've got a split mortgage. both parts on fixed terms but ending at different times. My next lot come off early November so probably worth leaving it on floating until the end of November to refix?
NZWarriors.com
We had a look at ours when it came off. There would have to be a drop of 1% over six months to make it worth paying the interest on floating.... but the other banks will probably follow ASB and BNZ and drop their floating rates so it may be worthwhile doing the sums and seeing if it's worth waiting until after the 27th of Nov to re-fix.
At least our tenants will be happy.... the drop in the OCR and the ability to claim interest on the mortgage (even though the amount we can claim drops with every drop in the interest rates) means we won't be looking at putting up their rent for a while now.
No... staying the same although, according to the property manager, landlords are having to reduce what they're asking for PW if they're looking for new tenants.
TBH, if you're renting at the moment, I'd have a look around at what's been offered on TM... you might find a better deal than what you're currently paying.
NZWarriors.com
Here's some interesting information about why it's good, if you can afford it, to keep your mortgage repayments the same as you're paying now.
There's talk about the RBNZ dropping the OCR down over the next few years to 3%. If they do that, interest rates will bottom out at around 5%.
If you have a $500,000 mortgage at the moment, at the average current 6-month rate of 6.75% PA, a 30-year mortgage would require fortnightly repayments of $1,490. This means, that over the entire life of the mortgage, you're paying over $665,000 in interest.
Now, if the interest rate drops down to 5.00% PA but you continue paying the fortnightly repayment of $1,490, the length of the loan drops down to 20 years and six months and the amount of interest you're paying drops down from $665,000 to just over $300,000.... saving you $365,000.
Then, if you decide to put less than half of your mortgage repayments each fortnight ($700) into a managed growth fund earning you an average of 5% PA (after taxes and fees), that would accumulate to just over $190,000 in the remaining 9 1/2 years of that 30-year mortgage term.
That means, with keeping the repayments the same and saving less than half of the mortgage repayments when the mortgage is paid off, you could potentially walk away with $555,000 over that 30-year loan term. In my opinion, it's far better you having that $555,000 than an Aussie bank earning an additional $365,000 because you didn't keep the repayments the same. That could even help you become one of the dreaded Bank of Mum and Dad and help get the deposit together for your children.... or, worse still, the deposit for an investment property.
There's talk about the RBNZ dropping the OCR down over the next few years to 3%. If they do that, interest rates will bottom out at around 5%.
If you have a $500,000 mortgage at the moment, at the average current 6-month rate of 6.75% PA, a 30-year mortgage would require fortnightly repayments of $1,490. This means, that over the entire life of the mortgage, you're paying over $665,000 in interest.
Now, if the interest rate drops down to 5.00% PA but you continue paying the fortnightly repayment of $1,490, the length of the loan drops down to 20 years and six months and the amount of interest you're paying drops down from $665,000 to just over $300,000.... saving you $365,000.
Then, if you decide to put less than half of your mortgage repayments each fortnight ($700) into a managed growth fund earning you an average of 5% PA (after taxes and fees), that would accumulate to just over $190,000 in the remaining 9 1/2 years of that 30-year mortgage term.
That means, with keeping the repayments the same and saving less than half of the mortgage repayments when the mortgage is paid off, you could potentially walk away with $555,000 over that 30-year loan term. In my opinion, it's far better you having that $555,000 than an Aussie bank earning an additional $365,000 because you didn't keep the repayments the same. That could even help you become one of the dreaded Bank of Mum and Dad and help get the deposit together for your children.... or, worse still, the deposit for an investment property.
- Thread starter
- #11,708
Markets predicting another 0,5% in November as well.
Such big cuts suggest the Reserve Bank are admitting they stuffed up… again!
Such big cuts suggest the Reserve Bank are admitting they stuffed up… again!
I hope it's another 0.5% that will be worth me holding out a few weeks for I think
NZWarriors.com
'Unusual and inconsistent' process to justify $24m 'Gumboot Friday' contract, auditor-general finds
Officials were "put in a difficult position" by a coalition deal to fund Mike King's initiative, the auditor-general has found. "The analysis appeared designed to retrospectively justify an outcome."
www.rnz.co.nz
Pretty obvious why this was granted.
'Unusual and inconsistent' process to justify $24m 'Gumboot Friday' contract, auditor-general finds
Officials were "put in a difficult position" by a coalition deal to fund Mike King's initiative, the auditor-general has found. "The analysis appeared designed to retrospectively justify an outcome."
Anything in conflict with the previous government.
Blind ignorance imo
"It is for Ministers to make overarching policy (such as an intention to fund counselling services for young people), but it is for the public service to ensure robust, fair and transparent spending of public money - including selecting a supplier and ensuring value for money."
Simply fire the public service so there's no checks and balances stopping you doing anything you want, problem solved! -Chapter 1, Project 25
NZWarriors.com
What was underhanded about this? It was an election promise followed through on. It's not like they promised 10000 houses or something ridiculous like that. Is the problem the fact there is action on a promise?
If they are calling that unusual and inconsistent what are they calling this?
There is still nowhere near enough help available for people with mental health problems.
Over almost half a decade, an historic $2b was poured into mental healthcare. What has it actually achieved?
www.rnz.co.nz
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I think the problem is Mike King's credibility, and the perception among some that he's a loose unit with some flaky ideas, they see it akin to funding Destiny Church's schools and Man Up programs. Don't know Mike myself so can't comment personally on his Gumboot Friday program and other initiatives, and yeah it was an election promise, another one ticked off.
Actually I'll take this even a step further. If this government is of the rich, by the rich, for the rich the previous government has to be held for the deception and sabotage of the country. Deliberately and systematically drove declining results in all major areas through a flawed ideology funded by borrowing that has made the most vulnerable measurably worse off. Absolute disgrace and arguably the worst finance minister we have had in many decades
NZWarriors.com
In that case, bring on the Nuremberg trials -Mike King
Not necessary. But it amuses me that the previous government seems to just get swept under the carpet of wellness and be kind. They don't stand up to any scrutiny and achieved next to fuck all. And here we have a promise kept and delivered and it's a big drama apparently.
NZWarriors.com
Do you know or have you met the guy.
I suggest that you haven't and might change your line of thinking quickly but then again..
Say you didnt read the article without reading the article.
Just because the coalition the election or are strong in the polls or made an election promise - doesn't mean you don't follow properly procurement procedures, or ignore treasury advice, or health advice - when spending tax payers money.
Of course it's going to get scrutinised like it is for every elected government.
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Nobody is reading this thread right now.
