Why would they make new lows?
Market has already valued in further falls in property market values in their share prices - beyond the current state of the market.
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Auckland is where it really needs to happen to drag the property market up further. Still too many NZers leaving for Oz and selling out according to our local B&T real estate agent. Says it is making her wonder if she should do the same herself!
Meanwhile, anyone notice that there is a big step change in interest rates for OCA even while debt levels grow ever bigger?
2022/2023 : Interest is charged using the BKBM Bill rate plus a margin and line fee. Interest rates applicable in the
year to 31 March 2023 ranged from 4.05% to 7.52%(March 2022: 2.48% to 3.7%).
Debt 2022 - $383m
Debt 2023 - $558m
2024 : Interest is charged using the BKBM Bill rate plus a margin and line fee. Interest rates
applicable in the six month period to 30 September 2023 ranged from 7.05% to 7.13%.
Debt Sept 2024 - $621m (going higher as capital commitment of $88m)
So expect interest cost to increase to around $23m for the next half year.
So again OCA thread gets personalised with stupid attacks and not respecting others views without name calling. When is admin to do something about this? This thread is so Toxic. No wonders posters are leaving. Grow up and take your childish dribble elsewhere.
$225m of the total $620m debt is the fixed rate bonds (2.2% and 3.2%) so no interest cost increase there. Interest is only variable on $400m of the debt.
Finance costs for 6 months to September 2023 were $8.6 million. Not sure how you see them jumping to $23m for the current half year. Maybe $20m for the whole year?