SOME BRAVE PREDICTIONS
A beautiful Winter's weekend at Pauanui (yes, hiding again from the Sales staff) gave time to ponder the state of our market, the economy, after that second gin, relationships and after the third, life itself but we'll stay on the ones I can remember.
While the Minister for Finance keeps trying to hide it, surplus after surplus after surplus is starting to ooze down his sleeves.
The writer has never, during 30 years in business, experienced a run of such consistent affluence. And it is going to continue.
If there is one thing battered New Zealand business people do well it's scanning that horizon daily for storms and right now we just cannot see a raincloud.
Yes, some finance companies have lent too enthusiastically and if any fail our Press will make a HUGE meal of it such is the paucity of bad news available but consider: virtual consistent full employment, hopefully renewed focus on the immigration the country so desperately needs, a Deputy Prime Minister panicking as to where to bury the money and our wealthy neighbour proudly and gladly initiating tax cuts to its deserving citizens.
This Labour Government – kicking, screaming and spewing vitriol at anyone and everyone in resentment – will be forced to give tax cuts or commit political suicide.
We will win either way.
But add to this the current talk of interest rate cuts and there will be a real effect on market parameters. Values of apartments will increase and “cap rates” or returns will drop.
Rentals are in demand and we have available this morning only two studios, 12 one bedrooms and seven twos which is making the Rental staff a bit wide eyed.
The only real concern on the horizon is New Zealanders' lack of saving and provision for superannuation – yes, I know, the Australians have that covered too – but if you're reading this you are not one of them.
To my mind you can invest in the Auckland apartment market today with more confidence for the future than we have ever had.
Go on.
Call.
And enjoy that weak winter sunshine and the occasional rather strong gin.
MARTIN
