BANKS IN NZ & WHAT YOU NEED TO KNOW WHEN

BORROWING FOR LOANS, CREDIT CARDS --

WHY BANKS IN NZ ARE NO DIFFERENT

THAN A LOAN SHARK & 2019-20 is crunch time

for PROPERTY.

Why?? well you may be elated when you borrow off the Bank but underneath the Bank does not really care about you just your money. Now how many banks tell you the Break fees on fixed-rate home loans and unpopular bank charges when you apply for loans, cards or whatever. Very rarely they will tell you the otherside of the coin nor will they help you if you do have problems with your loans etc. Its all about money and Banks are loan sharks in a legit way of course. BNZ broke ranks in 2010 to be the first to axe $35 for overdrawn account penalty fees while the other Banks still charge customers. When customers try to change a fixed-rate mortgage to take advantage of falling interest rates they must prepare to pay higher break fees to get out of their mortgages.

GET RID OF CREDIT CARDS NOW

Worse still Banks want you to have credit cards--well thats the first thing to go but they try to get customers to pay as little back as they like unbeknown to you this is just interest on your card. Some bank minimums do not even cover your purchases at all just interest which is wrong. Use an Amex Green card which is the best on the market out there---really??---as many will think its the worst card ---this is because one can use instant cash and pay it all ALL back within the required time --- it suits customers just fine & no monthly fees [yearly fee of $50] , no bank interest -- apart from the card cost per year which is less than many other hype Visa etc cards. If you have credit cards get rid of them TODAY

MORTGAGEE SALES Rose 2008 & will again

when the CRASH STARTS 2019

• Household and external debt are still high with more properties per day under mortgagee sales in NZ as at 2011 and this will continue. In 2010 =121 registered mortgagee sales in February, 246 registered mortgagee sales in April 2010 & in July 343 mortgage sales that really is around 24% of total sales of real estate being mortgagee sales. Manawatu has approx 22 sales per month??
• 2019 NOT SO MANY MORTGAGEE SALES DUE TO THE COST OF HOMES
• fROM THIS YEAR those people caught in the subprime will be finding it even harder to service their apartments & properties they paid for at over inflated prices. Those Kiwis now find servicing these mortgages on their homes is easy due to low interest 4.75-9% & those who decided it was time to buy a second property or even a more exponsive first home will find servicing their loans not easy after 2019. Buying a mortgagee property sale is another matter

DEBT FREE IS THE WAY

• BORROWING & DEBT FREE: As we know borrowing off the Banks costs and the more you borrow the more you pay back. Our formula is this & PLEASE USE IT: borrow $NZ10,000 x 2 = $20000 + 1/2 = $5000 and you pay back approx $25,000 immaterial of the interest rates & inflation. By age 60 years you must or shuld be mortgage free because if not your ability to save becomes a mith--- you won't be able to. If not and youre still working with no savings for retirement you will lose. When you borrow how many of you check the fine print or even read it all the way thru when you are at the Bank. Not many as 90% would never think of it as most are so elated to be given the OK that their loan has been approved--this is the norm & Banks don't push the issue to read the print---its entirely up to you. But watch the sales pitch as this is also a ploy for people to not check the conditions properly of any loan & those wise enough to take their time will see that theres a few things you will like to question as the Bank sales offices hasn't told you everything.

• Credit card interest rates can be double that of a mortgage but you pay a lot of interest if paying the minimum off but thats how Banks make money from you. Amex you have to pay all the money spent back in one hit but is good for those who can afford it with only a yearly fee to pay. For those workers on the edge can them?

• Where people get trapped: To get out of a mortgage you must pay the Bank a closing fee which can be quite a lot so ask these questions first. Paying off a mortgage can take years & then people do not save in the meantime due to their repayments and have no ability after their mortgage if their 60s. Break fees apply if you want to change your fixed interest rate before the end set term of the loan. The fees can include administration costs and a cost in lending the money at the lower rate. Break fees also apply if you repay your loan early.

• Some forget about the emergency funds then borrow more or want a new car and the Bank allows them more funds and so it gets harder as the years tick by & the loan becomes more of a burden. Selling the house to buy an even better house just starts the process off again and the saving plan remains in the back burner. Thus renewing the debt is not an option if you have no savings.

• Have what you need and try to save and lets face it you don't need because someone else has one? Ask the Bank for the charges of everything from Bank accounts EFTPOS etc and take more cash out when paying accounts by EFTPOS if theres costs per transaction. Banks are loan sharks really and when times get tough they show no mercy.

• if you get a tax, ACC bill make sure you do something about it before it escalates. The IRD show no mercy but there are avenues of help. If you owe a mortgage work at it as it may pay to sell or downdgrade & if you have equity then you have an asset but don't let that asset suffer any more by not doing anything.eg. if your property cost $300,000 & you owe $150,000 mortgage then your asset base is $150,000. But doing nothing this 150k will drop even more.

• Take the interest free loans for Christchurch home owners-sounds great but in small print it also says "for 1 year only" so again you are under the spell of the Bank who could hype up the interest rate anytime after.

• But you have kiwisaver to turn to---for now that is but with 60% of investment made overseas what happens if a bubble bursts on world markets?? & how many of you savers know where your money is being invested?? best ask.

The Reserve Bank of New Zealand should stop raising interest rates which will impact more on home mortgage floating loans..

With the EU still fighting the Euro even Australia stock market has dropped.

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WHY ARE MANUFACTURERS & BUSINESSES LEAVING NZ: [ Read the story ] The issues are economics nothing else and many a time the owner is blamed for moving when in fact he has no say in the matter otherwise he will go bust. However read the reasons why NZ has lost the plot ---[ Compare to Thailand ] & why more factories are heading abroad now. It makes sense.[ Check WHY THAILAND ] is better for Manufacturers & any Kiwi Company. Why NZ is lost [ NZ Deficit increases ] Yes we owe money????? [ Government $250m a week borrowing ] [ Transmission Gully Impact costs ] [ Kiwi Family Savings Plan ] [ Benefit cuts good or meaningless ] [ Quit smoking-heres how ] [ Levin Business dying ] [ NZders lose out ] [ World population exploding ]

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