News

Finance is More Than…

Finance is more than debt management, savings and investments.  Insurance and estate planning are also key aspects of your financial security - having a will and power of attorney for your property and wealth, as well as insurance for your things and more importantly your life. But what is insurance and why is it so important? Simply, insurance is the way we pass financial risk on to someone else. We pay a monthly premium to the insurance company, and they take on our financial risk – so we...

read more

RBNZ Announcement

The RBNZ today announced that debt serviceability restrictions are being added to the policy toolkit. The RBNZ and the Minister of Finance have agreed to update their shared Memorandum of Understanding on “macroprudential policy”. This is basically the policy that supports the stability of our financial system as a whole, to prevent substantial disruptions to financial services necessary for a stable economy. The RBNZ has looked at various ways of supporting financial stability and house price...

read more

Long Term Interest Rates are on the Rise

Long term interest rates are on the rise, so it’s a good time to think about fixing for 5 years while the rates are still good – but only if this actually works for your situation! The main banks had been offering 5 years fixed at 2.99%, but as of February this year we are seeing the rates slowly rise. Currently the 5 year rates look to be sitting between 3.39% to 3.99% and these are expected to climb further. Understanding your situation and intentions is a must. If you are planning on...

read more

Debt, and How to Deal with it.

Having debt can be really stressful!  The thing is, it happens. Getting on top of it takes a bit of planning. Sometimes we can find ourselves in a situation where we have multiple debts – a few thousand on a credit card, finance for the car you bought a couple of years ago, a gem card, the mortgage, maybe a store card you’re trying to ignore, or maybe you are using your overdraft regularly. Having multiple debts can be overwhelming and it may feel easier to ignore it, in the short term.  The...

read more

Newsletter June 2021

  Hi there!   May has passed quickly and today is the first official day of winter – can you believe that we are now almost halfway through the year? Here in Canterbury the weather has really let us know that winter is on its way.  Evacuations, flooded properties, bridges out and roads closed, for many this is just one more thing to have to deal with, and the beginning of a long road to recovery.  Get in touch with your insurance company or insurance adviser if you have been...

read more

Changes to the Credit Act

There’s a good chance that you haven’t heard of the Credit Contracts and Consumer Finance Act (CCCFA), but it’s an important one!  It’s the Act that protects you when you borrow money or buy products or services on credit. So, if you are using a credit card, getting a personal loan, using a store card or have resorted to a payday loan then this is an important read. The Act requires lenders to always act responsibly and to ensure that you, the borrower, are making informed choices and know...

read more

New Default KiwiSaver Providers Announced

We have known for a while that there are some changes coming for KiwiSaver. The reason for the changes is to take better care of the over 400,000 people that are still in default KiwiSaver Schemes. The major change is that all members in default schemes will be moved to balanced funds rather than conservative funds. This is to increase the likelihood of higher returns in the long term, to give these default members a chance to have a better nest egg when they retire. On the 14th May, Finance...

read more

Credit Cards and the Cost of Debt

We’ve written about Credit Cards before (that blog post here), the good and the bad aspects. Now we’re going to delve a bit deeper into how credit card debt works. What is the cost of your credit card debt if you only pay the minimum repayments? Spoiler: it’s a lot. A big fat chunk of money that goes straight to the bank! Your credit card probably has an interest rate of around 18% to 20%. The minimum payment is probably around 2% to 5% of the balance each month. A small minimum payment can...

read more

Newsletter May 2021

Hi there! Here we are 1/3 of the way through the year already and instead of settling down into old familiar rhythms, our clients and the team at Building on Basics are finding that the pace seems to be steadily increasing.  The property market continues to operate at speed and the Government is rolling out major initiatives that are creating opportunities and uncertainty in equal measure. Accountants have been busy finalising accounts for the 19-20 Tax year, helping people and businesses...

read more

A closer look at Otautahi Christchurch

Let’s look at some local property figures. Canterbury is still one of the more affordable places to live in New Zealand, but that doesn’t mean it’s a slow or easy market! As many of our clients are in this region, we are very aware of how challenging the market is at the moment. In March, 918 property sales were recorded in Otautahi Christchurch. That’s an increase of more than 50% on March last year! It’s also taking fewer days for properties to sell, an average of just 24 days on the market,...

read more