"to add value to our clients by arranging, reviewing and
managing both residential and business finance
without any focus on our remuneration"
Since the introduction of fixed rates for loans by the banks in New Zealand in the early 90's (my memory is a bit hazy on this and it might have been earlier than this), borrowers have been faced with choice. This choice has placed many borrowers in a quandary.
While I can't offer you a crystal ball I can at least help you read the signs and anticipate the direction rates are expected to go.
Most people in Christchurch won't need a recap of the events we have all experienced since 4th September 2010 when life as many of us knew it ceased to exist, so I won't go there!
I write this from the comfort of a relatively unaffected Western suburb of Christchurch, but like most in the West, I have ended up helping, as best I could, our fellow Christchurch dwellers in the East who are in the greatest need.
Is the title an oxymoron? Will Kiwi's ever save on their own volition? I don't believe so.
New Zealanders aged 18 and older have an estimated total net worth of $367 billion with a median value of $60,000, according to a new survey conducted by Statistics New Zealand on behalf of the Retirement Commission. Source 2001 Household Savings Survey
In my role as a business mentor and finance broker I frequently meet small business operators who are struggling to come to grips with the financial side of their business. When asked about their trading figures, or cash flow for the month or year to date, they roll their eyes and say we get the accountant to do this or, worse still, they hide from it. This is especially true for the home based business or the newly established business where capital is tight, and they do not wish to spend precious cash on an accounting system.
If only they knew the value their bank statement contains. After all it's where the accountant extracts his information, and earns some of their fees from.
The Reserve Bank of NZ raised the Official Cash Rate (OCR) 25 basis points to 6 25 % on Thursday the 9th of September.
That means in the last year, the OCR has risen 125 basis points and the economist are predicting more. But is it an effective tool to control inflation in the NZ economy?
Is the Reserve Bank steering the New Zealand economy with only one paddle?