- By Southern Cross Partners Howick
On August 20 the Reserve Bank of New Zealand cut the official cash rate (OCR) to 3 per cent.
This fits with predictions in November, 2024, that each OCR review throughout 2025 would have the rate cut.
July’s pause on OCR movement was the only change to this steady downward trajectory.
The recent reduction could have been more as the RBNZ wrestled with the best decision keeping in mind expected levels of inflation, unemployment and the general mood of the economy.
Real estate market sales up
The real estate market is of most interest to SCP and winter sales have ticked along with the Real Estate Institute of NZ (REINZ) figures showing July, 2025, sales were up 6 per cent on July, 2024, and 25 per cent on July, 2023.
Conversely there are reports of vendors taking their homes off the market amid unrealistic price expectations.
Perhaps lower mortgage rates have not translated into first-home buyers entering the market as everyone had hoped, which could be linked to the cost-of-living challenges.
Cost of living bites
The cost of groceries rose 4.8 per cent, dairy 9.9 per cent, fruit and meat 5.6 per cent, each in the year to June, 2025.
Meanwhile mobile phones were down 25 per cent, computers 11.1 per cent, and household appliances down .8 per cent, to name a few examples.
It seems consumers are forgoing luxuries to keep a block of butter in the fridge.
Looking ahead
In this economy, assessing the income earning ability of investments becomes a priority.
At Southern Cross Partners (SCP) we pay returns monthly* which investors tell us makes a significant difference to enjoying the finer things in life (like butter).
It can be tempting to always seek the highest interest rate, but looking after your hard-earned capital should be a strong contributing factor to any new investments.
Do your research to ensure any new investment company you’re considering has a strong track record in their field.
We have a track record of more than 27 years’ experience offering first mortgage secured investments.
Licensed as a peer-to-peer provider by the FMA, our investments are a flexible option offering steady enhanced returns.
- Come and see us at 16 Selwyn Road, Howick, call 09 535 2239, or visit southerncrosspartners.co.nz.
- Disclaimer: Southern Cross Partners is licenced to provide peer to peer lending services under the Financial Markets Conduct Act 2013. This article is general in nature only and has not taken into account any particular person’s objectives or circumstances. We recommend you speak with a financial adviser before making any investment decisions. *Some capitalised investments may be available.
