'Buying NZ Property – Download the free sample readings!

NZ presents some of the most alluring property in the Western World; particularly given the greater easy of residency, the low cost of property, and the liveability of the country. In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now!

New Zealand Property Report 2010 - Download the table of contents or buy this 180-page report at our online store for just $US19.95.


Saturday, April 7, 2012

Was the collapse of Canterbury Finance a surprise?

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I was just going through my newspaper clippings and I came across an advertisement which is rather interesting. It is an advertisement by South Canterbury Finance, the now liquidated financial services company that was supported by the government. Some interesting facts emerge:
1. They disclose a $NZ 82.7 million Net Profit Before Tax in the year to June 2008; not so great on on the $2 billion in assets. i.e. that's 4%, and that was before the slump in the markets
2. They had a investment credit rating of BBB-, which is a pretty poor credit rating.
3. They are expanding, by adding an office in Wanganui, a dying rural town you might say given that since 2006 its population has been falling. Clearly they were appealing to a rural constituency, and they wanted to grow their assets to allay doubts.

So its not like there was no evidence of problems....and that's just from their own promotion. The problem is mostly that in NZ, no one knows how to read a balance sheet or the economic outlook. Just to put your minds at ease:
1. Look for a AAA+ or AAA- in the credit ratings; and respond when the credit agencies do because they can work on the basis of perceptions, just as you do...or context if you like. In a bull market, no one cares about a bad credit rating.
2. The outlook is for higher commodity prices, strong NZD, a two-speed economy, with high oil prices, the strong NZD going to undermine economic activity. There is going to be an attack on North Korea and Iran within a year; they will be short-lived occurrences, but they will hit market confidence, so sell your shares. The US and other central banks will then look to offer stimulus, so you might expect a recovery thereafter. Give it a year to turn around, so we are 2 years away still from the resumption of the China 'bull market' story.


'Buying NZ Property – Download the free sample readings!

NZ presents some of the most alluring property in the Western World; particularly given the greater easy of residency, the low cost of property, and the liveability of the country. In addition, there is no capital gains tax, transfer taxes, VAT/GST or wealth taxes in NZ, so rest assured that NZ property is tax-effective! Learn more now!

New Zealand Property Report 2010 - Download the table of contents or buy this 180-page report at our online store for just $US19.95.


Japan Foreclosed Property 2015-2016 - Buy this 5th edition report!

Over the years, this ebook has been enhanced with additional research to offer a comprehensive appraisal of the Japanese foreclosed property market, as well as offering economic and industry analysis. The author travels to Japan regularly to keep abreast of the local market conditions, and has purchased several foreclosed properties, as well as bidding on others. Japan is one of the few markets offering high-yielding property investment opportunities. Contrary to the 'rural depopulation' scepticism, the urban centres are growing, and they have always been a magnet for expatriates in Asia. Japan is a place where expats, investors (big or small) can make highly profitable real estate investments. Japan is a large market, with a plethora of cheap properties up for tender by the courts. Few other Western nations offer such cheap property so close to major infrastructure. Japan is unique in this respect, and it offers such a different life experience, which also makes it special. There is a plethora of property is depopulating rural areas, however there are fortnightly tenders offering plenty of property in Japan's cities as well. I bought a dormitory 1hr from Tokyo for just $US30,000.
You can view foreclosed properties listed for as little as $US10,000 in Japan thanks to depopulation and a culture that is geared towards working for the state. I bought foreclosed properties in Japan and now I reveal all in our expanded 350+page report. The information you need to know, strategies to apply, where to get help, and the tools to use. We even help you avoid the tsunami and nuclear risks since I was a geologist/mining finance analyst in a past life. Check out the "feedback" in our blog for stories of success by customers of our previous reports.

Download Table of Contents here.