Important news for Australian & NZ investors

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If you are a foreigner interested in investing in NZ, you should read this, particularly if you are an Australian or a NZ planning to go to Australia. Most people will not have the breadth of knowledge to generate these insights. It encompasses a mix of finance, economics, mining engineering, metallurgy, geology, politics, and a touch of critical thinking....and its all sugar coated. Anyway, what type of analyst looks 20 years into the future. Yep, there are not too many futurists around.

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

A prosperous outlook for NZ - an energy boom?

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There are of course numerous factors you look at when you decide a place to invest, a place to live, or a place to holiday. For these activities NZ has a great deal of appeal because its low-income per capita has decimated the currency. It has often lagged between 0.5-0.75 USD for the last few decades. This collapse occurred after the 1960s commodities boom. In days gone, countries like Australia and NZ were among the richest countries in the world.

I can see a time in about 10-15 years when the NZ currency will be stronger. It is possible that NZ will capture some of that long-lost glory. That is a long time off. I am expecting NZ to have an energy boom. i.e. Methane hydrates mined from the sea floor, lignite pellets, and perhaps even conventional gas. With offshore oceanix areas the size of the EU, and a stagnant population of just 4.2 million, there is economic potential in those 1000-metre deep southern seas. It will take time to find, delineate and develop these resources, however one good discovery will compel a great many other explorers because China and India need energy. That is a lot of wealth for such a small country. Expect it to have its own 'Norwegian-style' economic miracle.

NZ Property Guide Philippine Real Estate Guide Japan Foreclosed Guide

Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com

Migrating to New Zealand - UK currency advantage

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There was a story on New Zealand television tonight suggesting there were some 40,000 English planning a move to New Zealand. According to the report Hamilton, the 5th largest city is a popular destination for Brits at the moment. The reasons cited for coming to NZ was unemployment, a better life, better weather and the forex advantage. The British pound might be falling against the Euro, but the pound goes a long way in NZ.
The adjoining chart shows that the NZD is very weak against the pound, such that a pound will get you 2.8 NZDs. In Jan-2006 the exchange rate was even more favourable at 3:1. Its not such a big difference. The advantage of NZ is that a Brit can buy a house in NZ for as little as $NZ80,000 in places like Wanganui, Taumarunui and Otago. By implication asset-rich Brits can live here very comfortably, even if they do it just for a few years. Many Brits come here because they find it a better place to raise a family. Dad's are more relaxed, the working hours are less, but the salary is also lower. NZ runs on a different value system. Money comes a distant 3rd to relationships and sports here.
Clearly NZ makes more sense for people with a lot of assets or offshore income, as these are the people that profit from the low currency. Other nationals, whether Koreans, Americans, Japanese, Australians, Canadians and Europeans will also benefit from the currency advantage. Its that weak.