New Zealand

Heres the plan= Buy a property in New Zealand (not sure where). Euro is strong against NZ dollar. Lots of Irish and other nationalities travelling there for work and travel. Lots of jobs at the moment. Therefore property prices should increase + rental should be strong. Then in 2011 (Sep/Oct), bring family out there for 2 months for rugby world cup. Sell house for profit which may pay for holiday.
Does anyone have any comment. I know it sounds simplistic, but it also sounds feasible. I have about €65000 that I can use as a deposit on the property.
Also if anyone could recommend a nice area of NZ, in a city preferably, or you may know of a good Real estate company our there?
Any comments would be appreciated.
Regards,
Pat rob.

sales have fallen by by 30% year on year in NZ, do some homework first, a good exchange rate doesnt incentivise locals to buy

Mortgage interest rate in New Zealand are 10%.

Thanks for replies. 10% is high, but give it a few months and it could be a great time to buy. Things in the market will have to improve at some stage. Its just a matter of when. Sporting events can often lift a depressed market. I will take my time and start to make further enquires. At some stage you have to go for it. Anyway Ireland will probably win that world cup!!

pat rob 72 said:

Thanks for replies. 10% is high, but give it a few months and it could be a great time to buy. Things in the market will have to improve at some stage. Its just a matter of when.

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Sounds like a good proposition - how many months should we wait?

have a look at www.realestate.co.nz & http://www.trademe.co.nz/Trade-me-property/index.htm - they'll have links to real estate agents etc. Can't recommend any agents though.
This government website gives details on overseas investment in NZ:
[broken link removed]

Therefore property prices should increase + rental should be strong

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Ok is this what happens in a recession? And your idea that prices will rise because of a sporting event is a bit of a joke. They give a short term lift and nothing more.

http://news.bbc.co.uk/2/hi/business/7542815.stm


New Zealand 'enters recession'

New Zealand is already in a recession, according to a new assessment by the country's Treasury.
The most common definition of a recession defines it as two consecutive three-month periods of contraction.
While final data for the second quarter has yet to be issued, the Treasury said recent financial indicators showed the economy shrank in the quarter to June.
The economy declined by 0.3% in the first quarter of 2008 as demand slowed for New Zealand's exports.
The Treasury predicts flat growth in the third quarter but forecasts a recovery in the last quarter of 2008.
"Domestic demand has weakened and private consumption is expected to have fallen in the June quarter," said the Treasury.
It added that as food and petrol prices rise, spending on more discretionary items has fallen.
"With continuing weak growth, inflation is expected to ease in the medium term," it said.
The country's central bank made its first interest rate cut in five years in July, reducing rates by a quarter of a percentage point to 8% from 8.25%.
Analysts said that the size of the rate cut was limited because of inflationary pressures and fears that lower borrowing costs would accelerate consumer price growth. However, the rate cut has also weakened the New Zealand dollar, which while helping exports has fanned inflation. The last time New Zealand had a recession was in 1997-1998, following the Asian financial crisis.

Thanks for replies. 10% is high, but give it a few months and it could be a great time to buy.

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I love some of the short term predictions on this site that the global economy 'will come good in a few months', or 'give it 6 months and things will be back to normal', 'just a short term correction' or 'Ringledman your talking up a bear trap'.

The western world is entering a major stagnation which will last at least 3 years of falls followed by maybe 2-3 years of zero growth. Buying property in Ireland, UK, Spain, France, US, NZ, Aus is a mugs game at present. Even the BMV bregade who think they are getting 20-30% off will be back to zero within 5 years of zero GDP growth and high inflation eating into capital values. Why rush into buying in these markets when in 5 years you will be able to at least pick up the same property for the same REAL Term value or less???

The new world order means that the places to buy property currently is the CEE, South America & Middle East markets. The problems is the huge political and legal risks associated with most of these places.

Hi,

I would leave any investment in NZ for a long time. A friend over there has been looking for over a year and has just given up - does not see any chance of making a profit in the forseeable future due to interest rates, relatively low icome levels and the cost of the properties.