From a property perspective what was relevant in this years budget was the noticeable absence of anything specific for property. Certainly, Kiwibuild was not mentioned at all. Perhaps they think the job has been done to some extent: • The % of houses being sold to first home buyers is increasing – have first home…
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Recent articles on the property market have begun to turn their attention to Hawke’s Bay as a region of growing potential – and has even referred to it as ‘the new Tauranga’. It’s backed up by the stats: Hawke’s Bay is experiencing higher-than-anticipated population growth. “The region is experiencing some of the strongest house…
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Our last interest rate article discussed the long term historical average rate sitting below 5%. We now have an OCR rate cut of 25 basis points, providing more evidence that rates will not be rising beyond 5% for the foreseeable future. What is perhaps more interesting is there is a widely held view that we…
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Three weeks ago, people were hesitating to make property investment decisions pending the government’s announcement on a Capital Gains Tax. I think most of us were expecting a CGT, at least on residential property – but there was nothing. Political genius, opportunism, planned? Call it what you want – Capital Gains Tax is essentially off…
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I like to think I am immune to those Woman’s Weekly articles about Meghan and Harry. The truth is I secretly have a quick read. Does Meghan really love Harry or is she just in it for the power. And even if she is just a very good actor, does that mean the marriage will…
Read MoreWith a high-performing tourism sector and solid year-on-year growth, Central Otago may well be the golden egg for astute investors. Most of us are familiar with the gold rush history of Central Otago. Heroic stories of boom and bust and wayward fortune hunters are part of the region’s charm. These days, Otago has out-grown its…
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At the moment we don’t seem to be hearing much talk about property busts, not in NZ or many other countries. Are property markets maturing, is the age of a boom bust cycle at an end? It reminds me a bit of my bike riding age when I was about 10….bear with me… As kids we…
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What were we thinking! My last update was just after the election with a summary of what I thought the impact on the property market would be from the new Labour government. Now we are 4 months in we thought it about time we did a review…and then of course look forward again. Our overall…
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NB: Since writing this article the RBNZ (as predicted) has announced easing of LVR rules effective 1 January 2018. Our analysis of this will be published next week. We have a new government in NZ, finally a decision, and now the burning question is what will the Labour impact be in general and specifically on…
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Capital Adequacy – What Is It & How Will it Affect the Market?
Capital adequacy is the Reserve bank telling banks that in tough financial times the capital they are holding on their balance sheet could be insufficient to weather a major economic event, such as we saw during the Global Financial Crisis. Adrian Orr is pushing that this needs to happen and the Reserve bank are currently…
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