Indexgroup Newsletter

Hi [salutation],

We thought it was about time we gave you a bit of a look at the people who make up APM. To this end we will feature one of our brokers in each issue, starting with the man known affectionatey as 'Broking God'...

1. Broker Profile- Kirk Vogel

Kirk was the FIRST person to purchase an Adam Parore Mortgages business, and has never looked back. Coming from a self employed background of owning his own commercial photography business, and online trading businesses, his self employed skills have carried his business from zero to hero extremely quickly! His clients appreciate the experiences his businesses have taught him, and the knowledge of asset building and equity management he can pass on.

When he gets spare time, Kirk enjoys flying helicopters, cutting loose on his Aprillia motorbike, tennis, playing in the stock market, and keeping fit by road cycling when he gets time in the weekends. Kirk lives by himself in Kohimarama and is often seen buzzing around the bays in his distinctive black Ford Falcon.

2. Interest Rate View

Across the board interest rates generally appear in a bit of a holding pattern. Last week the RBNZ signalled that they see no movement in the OCR until the middle of next year. The implication of this is that floating rates will remain at about 9.5% for at least 12 months from now. On the swop market fixed rates also appear to be reasonably stable and the outlook for them over a similar term is not too much different. Historically both types of rates are currently at levels above their long term averages meaning that we see rates at present as 'expensive'.

3. What should I do?

If I was a borrower I would not be floating! With a clear signal that there will be no respite for 12 months why pay 9.5% when you can fix for that period at 8.5% and save yourself 1%? That said a better play would be to look at a fixed rate option for 3 years at about 8%. This looks better value than the current 2 year options at 8.2% which are a bit pricey relative to historical norms. The evidence to date tends to support a reasonably drawn out softening period to the current interest rate cycle, and little evidence that either fixed or floating rates will head back (much) under 8% over the next few years. This contrasts with the last cycle where the bottom was at about 6.5%. Given the expectation that 8% is as good as its going to get, and the risk is on the upside due to persistent inflationary pressure (keeping us above 4% in the medium term), this looks a reasonable strategy. The key thing is to get your head around is the fact that those 2 year fixed rates at under 7%, (the ones that all due to mature in the next quarter), are not going to be repeated for quite a while!

4. Company News

The big news is that we are now 1 year old and have survived the mandatory 1st birthday party! Many thanks to all the guys who made the night such a success and who still managed to turn up at work the next day. One senior member of the team was a standout, and we all admire their commitment to the cause. Those of you who are ever invited to a social occassion with any of our franchisees should certainly attend because on the evidence to date they all know how to have a good time!
On a more serious note our recruitment drive is now in overdrive and we are particularly keen to hear from anyone in Christchurch and Wellington who is keen to have a look at joining us. For a free information pack send an email to cecile@adamparore.co.nz.

5. My Rewards [click here]

Thanks to all of you who have signed up to My Rewards and who have helped to make its launch such a success. To date we have had a number of you qualify for the trip for 2 to Sydney and with a month to go in the promotion it looks like we may be sending quite a crew! Anyone who is keen to get in on the action should follow the link above to join a program that allows us to help those who look after us! For those of you are on board, and have redeemed your points, drop us a line to myrewards@adamparore.co.nz and tell us how your experience went.

All the best...