For NZ investors things could not be worse. Asset markets are collapsing, commodity prices are collapsing, the terms of trade are deteriorating, the national debt is at its worst. NZ has been there before. But now it finds itself there again. The NZ dollar has is already down 37%, and it looks like falling further to USD0.40 to match its previous lows set back in 1999.
For foreign investors and NZ exporters things could not look better. OK, its true that the marketability of food will get harder during a global recession, but one must remember that NZ has a currency advantage, even over Australian produce, where NZ brands are already well-established. For foreign investors, particularly the British who have enjoyed holidays in NZ, they will be well-aware of the currency advantages investing in NZ. They have been here for years. There are already a great many English living in NZ. In the last 10 years the number of Asian immigrants from Korea, China, Thailand, Malaysia, the Philippines and other countries has greatly increased the population diversity, even outside the major cities. Many large towns have Chinese, Thai, Indian and Turkish restaurants.
The timing for investing in city property is premature since these prices are still falling. I however I recommend investors buy a rural-based property to establish a base in the country. Some rural property is offering excellent yields and the very low NZD offers a superb opportunity to lock in a very attractive cross rate, as well as giving you the opportunity to mortgage your local home to purchase more property. Depending on whether you intend to live here, repay the loan from offshore income (which makes excellent sense), the benefits are readily apparent.
There are also compelling financial benefits for property investors, including ZERO capital gains tax, stamp duty, GST and transfer taxes. None on property! This will suit medium to long term investors depending on their investment objectives.
For foreign investors and NZ exporters things could not look better. OK, its true that the marketability of food will get harder during a global recession, but one must remember that NZ has a currency advantage, even over Australian produce, where NZ brands are already well-established. For foreign investors, particularly the British who have enjoyed holidays in NZ, they will be well-aware of the currency advantages investing in NZ. They have been here for years. There are already a great many English living in NZ. In the last 10 years the number of Asian immigrants from Korea, China, Thailand, Malaysia, the Philippines and other countries has greatly increased the population diversity, even outside the major cities. Many large towns have Chinese, Thai, Indian and Turkish restaurants.
The timing for investing in city property is premature since these prices are still falling. I however I recommend investors buy a rural-based property to establish a base in the country. Some rural property is offering excellent yields and the very low NZD offers a superb opportunity to lock in a very attractive cross rate, as well as giving you the opportunity to mortgage your local home to purchase more property. Depending on whether you intend to live here, repay the loan from offshore income (which makes excellent sense), the benefits are readily apparent.
There are also compelling financial benefits for property investors, including ZERO capital gains tax, stamp duty, GST and transfer taxes. None on property! This will suit medium to long term investors depending on their investment objectives.
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