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New Zealand; a land of opportunity but not without risk.

01
No matter what background we have or what country we or our forebears come from, there is no doubt New Zealand offers opportunities to those prepared to work for them. This pioneering spirit in a modern world has become more often referred to as our entrepreneurial spirit…where grit and determination meets execution! We can spend time working for ‘the man', building our know-how and experience or we are already experienced business people from other places, and one day we think, ‘I could do this myself. Take my dream, start a business, (or start again), employ some help. I don't want an empire, I just want to work for myself and get a lifestyle out of it for me and my family.'

This attitude is so common that small to medium sized enterprises (SMEs) in New Zealand employing five or fewer people now number over 430,000, employing more than 560,000 people representing immeasurable worth to the national economy (GDP). But there's a threat lurking beneath these impressive statistics: research tells us that New Zealanders are underinsured compared with other countries, with only about a third of the investment other OECD nations put into protecting the livelihoods of the people producing this GDP. At GFS there is too often evidence that business owners, many of whom are the key person in the business, frequently lack some or all of the cover they need.

This is in part because many see insurance as expenditure rather than protecting their dream. One role of GFS is to show people than insurance is not a cost, but on the contrary a vital element of financial wellbeing. A second role is to provide products and services that facilitate that wellbeing.


The diagram shows all the parties at risk in ‘The Circle of Life'. The business is underpinned by its key people, who are subject to general life risks - accident or illness that could leave them temporarily or permanently unable to contribute to the business.

That financial impact flows on to the owner/s of the business (often also a key person), who is responsible for the debt, both visible and invisible. Some owners think they don't need business or key person cover because they don't see any outstanding debt - they wholly own the business and the business assets such as vehicles and so on.

However, that's just the visible debt. The cost of exiting is invisible - if you suddenly had to close the business, what would it cost you to pay all current utility bills, rates, holiday pay and other entitlements? What about your lease commitments too? Too often these issues can be overlooked.

Then there are the families; the people supported by the business. What does the owner's lifestyle cost? What about their staff's lifestyles? Who and what is dependent on the business, and what happens if that revenue stream drops or stops? But of course, ‘the circle of life' only completes because the business also is dependent on the very people needed to drive revenue.


The advice GFS offer their clients looks to deal with this value chain. Certainly, it is the responsibility of business owners and key people to seek advice to get the cover they need. But GFS bear equal responsibility, in that they must help to simplify this process and support their clients transfer of any financial liability they are uncomfortable with should a life risk event strike. Getting the insurance you need should not be complicated or expensive relative to the risks you face – Talk to GFS today about how they can help you.

Call 09 2555500 email insurance@globalfinance.co.nz

 

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​OCR set to fall further – do I break my fixed interest rate home loan?

Written by Saurabh Gupta on September 7th, 2015.      0 comments

Interest Rates to fall again 02July15-390On Thursday 10th September, Reserve Bank of New Zealand is set to announce updates on the Official Cash Rate.

In a recent survey by Mortgagerates.co.nz all economists expected a cut in (Official Cash Rate) OCR of 25 basis points. If RBNZ announces such a cut, it will take the OCR down to 2.75%. If it happens, the rate of interest for floating home loans could reduce in New Zealand. Previously Westpac Bank chief economist Dominick Stephens also predicted a forecast of as low as 2% for OCR.

This comes in the backdrop of heightened activity in the Auckland property and mortgage markets.

Ajay Kumar, Director of New Zealand’s leading mortgage broker and adviser, Global Financial Services Ltd (GFS), has been advising clients to keep an eye on the falling interest rates. Interest rates on home loans have come down from a high of around 6% last year (for 2 years fixed) to recent lows of around 4.55% (for 2 year fixed interest rate specials) and 4.35% (for 1 year fixed interest rate special).

However, many people who have a mortgage have been worried about the unexpected break cost when they ask banks to reduce their fixed interest rates to the new lower rates. For this Global Financial Services based in Auckland has been working closely with customers as well as bankers across New Zealand to do a cost benefit analysis of how much they gain from the new lower interest rate on their fixed home loan versus how much they loose on break costs. GFS has also negotiated good cash backs with the banks for covering a significant part of the break cost – where it makes sense to do so.

In an economic environment where interest rates have been falling, though most home owners with mortgages stand to benefit, those with their ears to the ground and some patience would probably be able to maximize their benefit. It is very important to be able to compare deals across banks as different banks have come up with different offers and initiatives to tap this buzz. What customers need at this hour is not just a mortgage broker but rather a mortgage adviser who can do all this analysis and follow predictions on their behalf – instead of the customer doing it all.

This is where GFS comes in. Ajay Kumar started GFS with the vision that he will help customers not just get a mortgage but also advise them on how to pay it faster by saving unnecessary interest. Similarly, GFS would help customers to get the right insurance which would protect the family home and other assets in unforeseen events – while saving on their insurance premiums as well. GFS customers have become mortgage free in as little as 7 to 12 years compared to the standard 30 year term that banks provide to mortgage customers.

Global Financial Services Ltd has been successfully serving the New Zealand market continuously for over 16 years. It has been successful in arranging loans and life and personal risk insurance of about $5.5 billion.
GFS has won 23 prestigious awards & recognition including top advisor awards from ANZ Bank, ASB Bank and AIA Insurance and The New Zealand Mortgage Mag. Others include Indian Business Awards for Excellence in Customer Service, Best Medium Sized Business and Supreme Business. GFS was a Finalist for Excellence in Customer Service Delivery at Westpac Auckland Business Awards 2015 - delivered by Auckland Chambers of Commerce and ATEED and are across industries.

For assessing your loan situation and how you can benefit, please contact GFS on 092555500 or info@globalfinance.co.nz.

 

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