STUPID TIMES AHEAD
Get Ready
Expat New Zealanders will laugh with a wry smile at the latest NZ- style masochism displayed last week by BNZ Chief Economist Tony Alexander.
Despite the taxpayer-bailed-out bank's desperate promotion of residential lending (100% mortgages) its foot-in-mouth Alexander is exhorting prospective Tenants- Turn- Owners to hold off buying as they will get a bargain as soon as prices collapse.
For our substantial foreign investors and Australians – make that just foreign investors – you have to understand the NZ psyche to profit from it.
The economy has been buoyant consistently for longer than I have ever known it but we enjoy a particular perversity in this country called self-flagellation. This stems from a basic insecurity and lack of confidence where if it's good for too long we are determined to make it bad.
Australians are as mystified at this as I am (yes, I think like an Australian and people often mistake me for one but I just don't speak that well).
Last year our newfound worry was the value of our dollar – a potential cause of doom because it exceeded $US0.70. This should not be – we should rightfully be poor dammit!
Lately, because we enjoy full employment, a continued positive balance of payments and a nervous “feel good factor” all round the powers that be have decided quite rightly (for the masses) that enough is enough.(The masses don't read these comments so don't worry, you're OK).
Prepare for a fortnightly attack from the buffoon brigade who get lunch with the Reserve Bank Governor Alan Bollard if they can successfully bag any aspect of our economy and bring some well-deserved gloom where it should have been all along.
The advantage to you?
Very regrettably – and this is not our duty as Agents – investors who were quite happily trying to better themselves will start to panic.
We don't like it but Bargain City will rear it's ugly head shortly through misplaced sentiment alone.
If clients won't listen to us – take advantage.
Auckland is fabulous, full employment reigns, rentals are robust, replacement costs are higher than buy levels, we're fun to deal with….
The lovely soft chill of Autumn is cooling our mornings, the deciduous are already dappled, the girls are flirting with new fashions, the tenants are driving us crazy…
Take advantage but be kind…..
Call us.
MARTIN
