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OCR Remains Steady

15-Nov-2014

PROSPERITY e-news NOVEMBER

With Christmas fast approaching now’s the time that any money worries we might have become front of mind. If you want to rid these worries completely check out our advice below and you’ll be well on track. You’ll also find some helpful tips for anyone looking to purchase a new abode. Don’t forget, if you want to know any more about what the team at Prosper can do for you, check out our new look website, www.prosper.org.nz

OCR remains steady

Once again the OCR has been left unchanged at 3.5 per cent. This indicates that floating mortgage rates are unlikely to increase – which is great news for borrows. The better news is that the forecast suggests that there will be no increases until late 2015. If you want further insight around what this could mean for your personal situation please don’t hesitate to get in touch.

 

 Ensure money worries are a thing of the past

Nobody wants to be stressed about money, especially around this time of year! Make sure you follow these simple steps that will help you steer clear of financial stress for good.

Consolidate, consolidate, consolidate

Multiple everyday banking accounts, savings accounts, credit cards, mortgages, investment accounts and Kiwisaver… These days it’s not unusual for us to have our finances spread across the board. While such a spread can make good financial sense it can be hard to stay on top of.  If you haven’t used an account in the last month, pick the account/s that offer the best benefits and start consolidating! Then, it’s a good idea to set up an account or spreadsheet that gives an overview of everything – so you can get a snapshot of your financial health without logging into a dozen different accounts. If you want some advice on how to best consolidate your financial info remember we’re here to help.

Set up an emergency fund

You might not think you’ll ever need it, but having an emergency fund is a must. While making sure you have at least a month or two of cash on hand in the bank is a good idea, an even better idea is to have a solid income protection, life and home insurance policy. The last thing you want is for you or your loved ones to be stressing or haggling over bills should disaster strike.

Eliminate debt

Eliminate debt – it’s something that’s easy to say, but not so easy to do. One of the most successful ways to reduce debt is to identify the amount you can afford to part with each payday and using an automatic payment credit it to your debt that has the highest interest rate (not necessarily your largest debt). Continue the process until the debt’s gone. It won’t take long for you to forget about the payments happening automatically.

Start considering alternatives, and then stop considering alternatives

When it comes to your finances it’s a great idea to explore the alternatives, investigate, consider and make sure you’re getting the best deal around. But then once you’ve made your decisions, forget about the other options – spending time worrying about what might have been is pointless and unproductive. The best move is to talk to a professional adviser. We’ve seen first hand how all the different options play out, and we know what works best in specific situations so we can tailor our advice to suit.

 

 Make it easy to buy your dream home

The Summer months are when we see an influx of activity in the property market. This means that open home season is now upon us. If you’re looking to secure the perfect new house you need to look beyond whether it has sufficient bedrooms, a nice kitchen and bathroom and good space for outdoor entertaining. It’s important to focus on some of the smaller details too. With this in mind check out list of details to look for when you visit an open home.

  • Musty odours and any signs of rising damp.
  • Condition of walls, ceilings, floors and floor coverings
  • Insulation and ventilation.
  • Amount of natural lighting.
  • Condition of windows and doors.
  • Size of living rooms and bedrooms.
  • Kitchen layout and bench space.
  • Built-in robes and storage or attic space.
  • The number of power points and phone connections.
  • Water pressure and leaks in the kitchen and bathroom.
  • Laundry facilities.
  • Floor coverings, curtains, blinds, light fittings.
  • Potential for expansion.
  • Condition of roofing, guttering and down pipes.
  • Condition of gates, fences, retaining walls and paths.
  • Signs of rot, borer or termite attack.
  • The aspect of the building and how much sun, shade and wind it receives.
  • Amount of off-street parking.
  • Privacy and noise levels.
  • Large trees close to the house that may cause plumbing problems or block sunlight.
  • Effective drainage and water runoff; and
  • Question the legality of any extensions that have been added to the property.

If you’re serious about a property you need to carry out a full property inspection and it’s always a good idea to get a professional building inspector to provide the builder’s report.

 We want to make this monthly Prosperity E-update an insightful, helpful and interesting read that you’ll pass on to your friends and family. If there’s anything you’d like to see in future issues just let us know. 

 

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