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Deal or no deal, and OCR raised to 8.0%

June 8th, 2007 | Author:

While there has been some fuss made over TV3s Deal or No deal show lately, I think there is a mountain being made out of a molehill. If you don’t like how some models cleavage is showing don’t watch it. If you don’t like your kids watching the show as they may get wrong ideas, since they are your kids don’t let them watch it. The same goes for if you are at the beach and men and women are wearing little if nothing and that offends you, or you are repulsed by a 75 year old plus man wearing speedos, exercise your freedom of choice to not look. So quit complaining, out your energy to constructive things and don’t look at Deal or no deal if you don’t like it.

OCR rise to 8.00%

In a similar vein some people are stressing majorly over the fact the OCR has been raised. Some investors and home owners are panicking thinking how are they going to pay their home loans now, will be get foreclosed on, how am I going to retire rich now, what if Interest rates go up to 13%!

Guys it is time to take stock of what happened. I know may be news to some people, but the sun will still rise tomorrow. Team New Zealand will still win the Americas Cup again (if not now soon enough), the All Blacks will still demolish all in front of them. Firstly remember that only your loans on floating/variable Interest rates are effected. Even if you have an average $300,000 of borrowings on floating, the latest 0.25% Interest rate rise will be $750 on your pocket. Not that big a deal.

Improving your return

However if you are more exposed and have fixed debt that will shortly be off the ‘cheap rates’ then you may have an issue. Maybe you need to renovate and add value to your rentals (do up properties to make them desirable to attract good tenants and get better rental returns), consider putting on a minor dwelling, sleepout or subdividing and selling your property. Can you fix your floating debt to get better Interest rates and loan terms. Can you use Lease Options to get some more cashflow. Can you adopt some propertytrading in this changing market.

The answer is: you can do all these things. The real question is what is holding you back right now?

In life sometimes it is like playing a game of deal or No deal. Because it is easy you just say No deal all the time. Why not be positive and looking at your situation – if you can do a deal that will get you ahead – do it…

PS: Grats Team New Zealand on annihilating Prada 5 – 0 to win the Louis Vuitton Cup and right to challenge Alinghi on June 23 – this was a thrashing that every Kiwi enjoyed

Posted in General, Interest Rates & Loans

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