A rise in property prices was not unexpected in NZ thanks to several factors:
1. The return of NZ expats from abroad - this will have increased home demand
2. The monetary stimulus - which essentially recapitalised the global monetary system, which keeps inflating asset prices
3. A fall in the NZD over the last year, resulting in very good market entries for foreign buyers
4. Latent demand - there is a shortage of property in many of the largest cities
For statistical info refer to this SMH story. The market can be expected to remain strong in the short to medium term, though inflation poses a risk to houseowners given the significant household debt levels. A conservative home equity is advised in the current market. Equities are far more liquid.
*Photo is from taken from city center, New Plymouth, New Zealand.
1. The return of NZ expats from abroad - this will have increased home demand
2. The monetary stimulus - which essentially recapitalised the global monetary system, which keeps inflating asset prices
3. A fall in the NZD over the last year, resulting in very good market entries for foreign buyers
4. Latent demand - there is a shortage of property in many of the largest cities
For statistical info refer to this SMH story. The market can be expected to remain strong in the short to medium term, though inflation poses a risk to houseowners given the significant household debt levels. A conservative home equity is advised in the current market. Equities are far more liquid.
*Photo is from taken from city center, New Plymouth, New Zealand.
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