NZ market?

thinking of taking advantage of the exchange rate and moving back to NZ.

whats the current NZ market like?

www.posigear.com.au
Positive Geared Share Investing

No stamp duty or capital gains for a start. :) almost 1.3 times the buying power, great huh. :)

I think it will be slow the next couple of years, hopefully drop a bit even.

All other things being equal, in 2 years interest rates should have dropped, and the equivalent of the first home buyers grant will have started (3k per person for those in kiwisaver plus they can access their super savings and it accumulates for couples. Over the first 2 years of the grants they increase to 5k per person).

Basically the scenario will be similar to 2000 when Australia introduced the first home buyers grant and we know what happened for the next few years following. Its just a pity that NZ house prices are already so high which will limit the gains due to affordability issues.

Cheers,
Matt

great info, thanks.

what areas should I look at?

www.posigear.com.au
Positive Geared Share Investing

The same areas that I am looking at, which is why unfortunately I won't share my research or we (and the rest of the forum) would be competing over some of the same properties. I would like to build a portfolio of about 10 properties in NZ over the next 3 years.

I found your website to be interesting reading. I wasn't aware that such arbitrage opportunities existed.

I should also mention that NZ interest rates dropped today for the first time in 5 years. Expected to lower the official cash rate from 8.25% to 6.75% in the next couple of years.

its tempting with the record exchange rate but with the NZ$ predicted to drop to 65c US in the next 6-12 mths and the AU predicted to have a much slower and later drop if at all the exchange rate to the Kiwi is likely only to get better.  See google news todays business section.

Also having just returned from NZ if people think Ausie prices are rediculous then given the kiwis limited earning capacity , lower wages and lack of substantial population growth , the prices are completely out of whack.

The fundamentals are not in place for any sort of immediate recovery like they are in Sydney and Brisbane.

Agree with everything you say condog.

Does anyone know of any lenders that will allow you to borrow in foreign currency against nz houses? I have found them for Australia but not in nz. I want to wait for the nzd to bottom out then borrow in a range of foreign currencies, then sell out  in a few years when the exchange rate is high again.

Sorry I don't now the answer RE NZ property.

I have been trying to find out for Aus though.  All the banks have been saying I need to receive the bulk of my income from the foreign currency.

Have you found a way around that?

i dont know too much about the market but i lived in nz for the past 3 years and recently moved overseas

i sold my house in there in october of last year, in a suburb called Kohimarama.

ive since moved overseas.

i really thought id sold it too cheaply in the mid 600's, however a mate of mine sent me this not long ago

http://www.nzherald.co.nz/section/story.cfm?c_id=516&objectid=10516401

before i left there were plenty of stories of people having to sell their investment units in the city way under the purchase price.

it will though depend on where you buy

exchange rate and no cgt is great but interest rates are quite high there

cheers

are banks in NZ hiking rate independant of the RBNZ?

ie, are mortgage rates really higher or do you just assume they are because the reserve bank rate is higher?

stu, Im hoping to pay cash as a loan is too hard

www.posigear.com.au
Positive Geared Share Investing

Does anyone have a template for a Business Plan to support a loan application to a bank?

Kevin