BEVS

From this article HERE with a link to the NZ stat profile.

Be happy. The price of milk has reduced.

Stormer999

Hmm I drink more beer than milk

alan83

There's alot of thread's on here relating to cost's and prices, affordability etc...and most of the replies paint a very bleak view on thing's...having looked at the price stat's and a quick google currency comparison $5.17 = £2.89, yet in my local and many places surrounding £3.15 a pint/£3.00 a bottle, as for milk its 50p dearer.

I'm just trying to work out what I'm actually coming over to as at this moment in time going off what I've read it's not to dis-simular to "The Great Depression"

MrsFychan

unfortunately does not relate to the prices I have to pay for things, so do wonder if its average cost?

jmh

Most of the things on that list I don't consume but petrol and GP visits are about right. Lamb I bought yesterday was less than that, but it might have been on special.

Bo-Jangles

Well of course the stats are average but still have to wonder where they shop or go for a beer to bring those averages down to those levels.

Most places its $7 to $8 for a bottle of beer depending if it's local or a 'premium' brand such as Corona; I rarely see price of beer on tap as I can't remember last time went to a pub. I 'spect they'll be including club prices at RSAs and Cossie Clubs etc. which is where most people seem to go if they want a cheaper beer or three.

I buy budget label milk from Pak n Save $3.45 presently for 2L so I wonder where else sells it for less.

Our quacks charge $43 so clearly over the odds there also.

barnsleymat

$5.17 for a beer???

Who are they kidding, I've only ever been in one place in the last 3 years that sells beer for anywhere near that amount. In both Auckland and Dunedin you rarely pay under $8 for a 'pint' (rarely a UK sized pint).

They must be using the price of beer from the liquor shops because if $5.17 is the average price and I normally pay $8+ there must be hundreds of boozers selling beers for just over $2 and I need to find out where these places are.

Robbie2010

This give more accurate prices ... http://www.google.co.nz/url?sa=t&rct...m1gL3cluDNStJQ

Hazelnut

When I've done virtual shops our grocery bill comes out roughly the same in both countries, some things cost more but others cost less. We already shop seasonally and make up our own meals in the UK so would do the same in NZ. Alcohol doesn't feature in our cost considerations. I'm pleased to see that take out posh coffee is cheaper

I think where the difference comes though is that the actual cost of the shop might be the same but the percentage that this is of our take home pay is higher. That means it costs more in real terms.

Bo-Jangles

Actually it's the bigger stuff that bogs you down rather than the price of milk - like mortgage interest being more than twice as much as it is in the UK but people rarely bring that one up when doing these surveys and cost comparisons.

Pom_Chch

Fair point about interest being higher here. Out of interest do you have any info that says that interest is more than twice the amount in NZ than UK? Was this specified in the article or is based more on personal experience?

I was having a look around on various websites in the UK as we are in the process of securing a mortgage in NZ and I am curious to see the difference in interest rates. I found a good comparison website below. If you look under the "initial rate" column on the link the interest rates start off low like you mentioned but then after that initial period the interest jumps up to any where from 4.24% to 5.99%, which is roughly on par with what our mortgage will be at the moment (around 5.69%). So whilst I do agree that the initial deal is excellent at only a couple of percent, it doesn't stay that way and in some cases jumps up to even higher than current interest rate here in NZ. Further to that if you look at the column "overall cost for comparison" the interest is not much different to NZ. Just having a look at banks in the UK, some are offering very good deals at around 3.9% and some not so much at more like 4.69%. Either way it isn't more than twice in NZ. In fact I am 100% certain we haven't signed ourselves up for an interest rate of 8-10%

https://www.google.co.uk/compare/mor...INITIAL_PERIOD

Bo-Jangles

Current rates today at random bank of the day- lets see ASB.

Housing Variable 5.75 % p.a.
Housing Fixed (6 Month) 5.35 % p.a.
Housing Fixed (12 Month) 5.49 % p.a.
Housing Fixed (18 Month) 5.85 % p.a.
Housing Fixed (24 Month) 6.29 % p.a.
Housing Fixed (36 Month) 6.60 % p.a.
Housing Fixed (48 Month) 6.99 % p.a.
Housing Fixed (60 Month) 7.20 % p.a.
ORBIT Home Loan 5.75 % p.a.

You might get a bit cheaper shopping around.

A 20 second search and I can find five years fixed rate at Natwest for 2.95%; 2.98% at the Post Office, 2.96% at Barclays or 2.99% at Tescos; the list goes on.

Pom_Chch

Thanks for that Bo. Out of interest after the initial five years in the UK what do the interest rates increase to?

Bo-Jangles

I don't actually care about what happens after five years, I may not be alive and it's about what you'll be paying now; locking in and securing your finance for a given period of time that you are comfortable with but I can see where you're going with this point, so won't labour it.

Life is not black and white or static, the financially savvy will chop and change, revisit mortgage options after the initial period, overpay, pay lump sums off and refix again, move house or whatever.

Personally I wouldn't ever fix for five years it's too long, too much changes. But if I could secure a large mortgage at less than 3% for five years I would grab it with both hands and be paying off as much as I could at that rate before rates go up. I had been reviewing ours on a six monthly basis fixed for two years now and I'll look at it again at the end of this year.

BEVS

Google forecasts may be your friend. . Fixed rates depend on what rate a bank buys in an xxx amount of money for. How much of that money it has at the time of offering whatever fixed rate it decides upon.

If you have signed up for a fixed rate , the bank lend you the money . It will be whatever they bought the money in for + their own mark up = fixed rate. You then pay that rate for those years. What you have to decide is whether or not the rates will be higher or lower as you come to the end of that term. It's a gamble.

What you need to keep your eyes on is the Reserve Bank of NZ . It's interest rate is pegged at 2.5%. Many are calling for an interest rate rise .

Bank of England interest rate is pegged at .05%. Many feel the economy too fragile to raise that rate.

So. This is what governs both savings & borrowing rates with banks etc.

You get more $$ interest for your savings here in NZ than you do in UK - if you have savings.

You pay more for your borrowing in NZ than you do in the UK.

If you have a crystal ball, you may be able to state what the NZ Reserve Bank and the Bank of England will have as interest rates in five years time. For that though, you also have to foresee how the global economy will play out.

When you take out the largest debt you will ever have, your mortgage, it pays to gain a little understanding of how the rates work nationally and globally as those decisions about whether to float , fix or revolve can be crucial.

HTH


note: For those with their fingers on the global pulse , it may look a bit squiffy. I've deliberately kept it sort of simples.