Skate-Wear Central

Easton Pro

Pros and Cons of Investing in the Current New Zealand Real Estate Market

Is this the best time to be investing in New Zealand real estate? The answer depends. Take a look at both the pros and cons regarding the current market before making a decision to tie up capital funds in property investment.

The Pros

For one thing, the amount of new residents coming into the country is on the rise, with an estimated 20,000 people arriving annually and a net increase to the population of approximately 11,000. This represents a real demand for additional housing, both rentals and purchased homes. At the same time, supply is decreasing. Due to economic concerns, much of the real estate in New Zealand is being offered at reasonable prices and favourable interest rates.

The global recession is affecting New Zealand less than other countries and a rebound is expected sooner here, as well. The same is true for Australia, our biggest trading partner. The financial health of New Zealand has always been stronger due to the absence of subprime lending practices in conjunction with stable banking structures and government support of financial institutions. The American policy of printing cash has resulted in a strong influx of liquidity worldwide which is expected to help the global economy.

Economic-wise, things are definitely looking up in the foreseeable future.

The Cons

With immigration rates at their highest in the past decade, New Zealand’s government has decided to tighten the policy on admitting foreigners to the country. This could certainly have a negative effect on future housing demand.

American and European policy may cause global inflationary conditions. Inflated value of assets along with debt increasing to astronomical proportions may significantly erode the value of the dollar over time and result in widespread inflation across the worldwide economy with resultant higher interest rates. Exports are already subjected to a higher-than-average (in a recession) exchange rate due to New Zealand’s superior economic conditions. This may allay the expected recovery of the employment rate in this country.

When you consider all the pros and cons affecting the current real estate market, is this really the best time to be investing in property? This may represent an optimal opportunity for financing the purchase at a favourable rate and being poised to take advantage of increased demand for housing. For investors with a steady and stable income, property investment is a great way to expand a financial portfolio whilst also realising a decreased tax liability.

About the Author

Paul Easton works with Matthew Gilligan – an accountant and partner at Gilligan Rowe & Associates Ltd (GRA). GRA is an accounting firm specialising in property and business accounting

Easton Hockey’s Pro Camp

O’Neill Easton Hat $28 O’Neill Easton Hat

Creatures Nat Young Pro Pad $37.95 Nat Young Pro Pad

Creatures Ry Craike Pro Pad $37.95 Ry Craike Pro Pad

Dakine Kalani Pro Pad $36.95 The five piece Dakine Kalani Pro Pad is ideal for good foot control

Creatures Aaron Cormican Pro Pad $37.95 Aaron Cormican Pro Pad by CREATURES has trac trac traction.Aaron Cormican Pro Pad

Dakine Hobgood Pro Pad $36.95 The Dakine Hobgood Pro Pad is good enough to keep you stuck to your board like glue

Dakine Bruce Irons Pro Pad $36.95 Surf like a real professional with the Dakine Bruce Irons Pro Pad

Creatures Kai Barger Pro Pad $37.95 Kai Barger Pro Pad is by CREATURES. It looks good and rides great.

Creatures Dusty Payne Pro Pad $37.95 Get a grip with the Dusty Payne Pro Pad from Creatures.

Dakine Eric G Pro Pad $37.95 Eric G Pro Pad by Dakine is set for traction. Buy, Buy, Buy!

Dakine Machado Pro Pad $36.95 Looking for a comfortable and functional grip pad to help you nail down those sick cutbacks and aerials? Get a ‘GRIP’ and choose Rob Machado’s Pro Pad!

Creatures Mick Fanning Pro Pad $37.95 Mick Fanning Pro Pad is by CREATURES. Ride the same pads as the 2 time ASP World Champ.

Dakine Andy Irons Pro Pad $36.95 The Dakine Andy Irons Pro Pad is perfect for warm days and also works well in cold water