'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.


Sunday, March 25, 2012

Returning campervans vs flying

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If you need to get between airports, many of us would probably fly or get an inter-city bus. Another option is to do a campervan return. There are certain cases when this works well:
1. Moving home - If you have more luggage than you'd be taking on a flight, then you can take that with you, i.e. Say because you are moving luggage to a storage facility on your way to the airport.
2. Different departure - Say you live in one majority city or town like Queenstown, but you have an international departure from Christchurch or Auckland.
3. Expensive domestic flights - Say you live in NZ where domestic flights can be just as expensive as your international flights.
4. No bus service - Say you left your bus booking too late, then campervan 'returns' can be a cheap way of getting to the airport. You also have the option of making a slight holiday out of the trip.
5. No car storage - I will be flying from Christchurch airport in June'12 and will probably looking to sell my car at that time. I will probably look at buying a new car when I return rather than keep one in storage for 3 months over winter. In this case, it makes sense to sell my car in Queenstown, a popular entry point, and to return a campervan.

This is of course just another option for those probably with a lot of luggage; or wanting to do some shopping, etc in another city. In most cases, you will probably just get that domestic flight. The trick is to know where to go to get your campervan 'return' and remembering. There is a litany of campervans needing redistribution at Queenstown airport. You drive past them on the way to New World shopping centre. Try Camper Returns.
You can get the vehicles for around $5/day, with a $100-300 fuel allowance depending on the distance and their urgency. There are time constraints, however you have the flexibility to pay extra for extra days.

Wednesday, March 21, 2012

Mountain biking in NZ

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There are a few areas in NZ which are great places to hang out for activities. Chief among these places are:
1. Rotorua - Taupo volcanic zone on the central North Island - close to fishing, whitewater canoeing, skiing, mountain biking trails
2. Upper Hutt - close to Wellington, this is another gem for outdoor enthusiasts with MTB, whitewater canoeing, ballooning, hiking, fishing, etc. Wellington City unfortunately never did much for me.
3. Nelson - close to this town is good fishing, mountain biking, but not sure about the skiing, whitewater canoeing. Aside from the ferry to Wellington ($70pp + $120 for a car), its a pretty isolated region.
4. Queenstown-Wanaka-Hawea is good for mountain biking, skiing, whitewater slalom, as well as as raft of other sports and activities.

These are the activity centres of NZ I believe. Queenstown and Rotorua are the easiest to get to. Direct flights from East Coast Australia - at least for Rotorua (limited) and Queenstown (expanding). I might mention that this April 21st there is the Contact Epic MTB Challenge at Lake Hawea. Every year the farmers in the region open up their properties to cyclists to go around the lake. This country needs another 1-2million, then it will be a great place to live. Sadly, its struggling to keep the people it has.

Tuesday, March 20, 2012

John Key unable to grow population

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New Zealanders are abandoning NZ at even faster rates. There are a number of good reasons for expecting this:
1. Canterbury (Christchurch) earthquake has given residents the hebbee geebees; and they don't want to place themselves in a situation where they could be vulnerable to another spell of it. The reality is that the earthquake rebuild will mean this will be a time of prosperity for those who go to Christchurch; though people will want to be careful about where they live, and what they live in. i.e. avoid brittle (brick in particular) structures; avoid loose sediment piles subject to liquefaction.
2. Cost cutting by government is going to see Australia absorb a lot of the public servants that the National Party is cutting. This is of course great for Australia since it adds to their demand; even if its 'good for nothing' public servants. The reality is that John Key is just killing NZ's potential for a recovery in economic demand. Paradoxically, public servants are probably among the nation's biggest savers. They have university education; but they didn't do much with it, so they lose point. They do eat and fart though; so Australia will take them.

The paradox is that NZ has some value propositions going forward. There are some brilliant Asian immigrants entering the country who really have a good work ethic. People are inclined to make generalisations about Asians. What they need to realise is that the ones that come here are usually the brightest in their 'over-populated' nations. I know some of them are difficult to understand. Geez, I spoke to a Chinese girl in Sydney. Very impressive....very smart...problem was I could barely understand here. Anyway, that aside, these people are very hungry, and they will greatly add to NZ wealth if NZ embraces them. Unfortunately, surveys show that Asians are the most discriminated group in NZ; followed by the Samoans. I personally this Aussies are persecuted here; but we can take it. We know its coming from a place of immense insecurity, so we can brush it aside. They all change when they migrate to an Aussie. They are never cured of the self-righteousness though. My mom has a NZ BF....he is forever saying he loves the country...but he never goes back.

The good news though is that NZ is dealing with the blow out in local government spending. Personally though, I don't believe centralising spending will make matters better. In fact it will just result in further job losses from rural areas, and this again could see more NZ'ers leaving. This government seems determined to drive NZ'ers out of the country. Everything they do is 'anti-jobs'. I appreciate the desire to make savings; but you don't replace a useless job with a useless welfare recipient. This will just compel them to go abroad. This will result in more job losses and business closures in the private sector; particularly in the rural areas of NZ. These towns are already over-serviced and over-capitalised, with depopulation still in some areas. We need the population of NZ growing.

Sunday, March 11, 2012

Is NZ an attractive investment for millionaires?

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According to David Shearer, the new NZ Labour Party leader, foreign investment is a threat to NZ. Think again. So why are they buying? Is NZ really such a great investment opportunity. Land values are growing 9% per annum on average. Others have other motives besides diversification. Some mega-millionaires are also escaping pernicious overseas tax regimes. NZ is considered a safe haven. The US govt has recently tightened its tax laws to pursue the stash of millions held abroad by American citizens. Some of those millionaires are rushing to leave the USA; to become non-citizens before they have to declare their assets to the US government. NZ offers 5 years tax holiday on offshore passive income - that is an added motivation.
Others are just spreading their investment risks. Irrespective, NZ is lucky to have these investments. Let's not persecute foreigners, who are more likely than not to invest here, for a land ownership framework which is wrong, and not for the fact that any person with a lot of land has the capacity to hold smaller buyers to ransom because of Western zoning restrictions. i.e. I'm currently trying to buy land in Queenstown. I could buy 10x more if I had 2x more money. That's the extortion racket perpetuated by our zoning system. The politicians are too cowardly to address it.
Shearer and others are populist reactionaries. Do they realise that when foreigners buy land, they actually raise the asset holdings of NZ'ers? Do they realise that this is a local basis for underwriting investment? Do they realise for every foreigner who buys, NZ money is potentially released for 'tangible' productive investment like factories. If these investments are not occurring, then its because there is no domestic demand. How can you grow local productive capacity when there is no population growth? Why would you develop an export centre in the far South Pacific when you can do it in Australia. The only plausible value proposition for NZ is:
1. Cheap labour - sorry, but NZ work ethic is not so appealing, Malaysia or the Philippines look better
2. Education - yes, NZ has potential as a source of educated labour, but broadly the values are so stinking collectivist/Christian dogma that they have effectively renounced their minds, and taken themselves out of the market
3. Software - yes, but without a consumer base, why would you do it here?
4. Content - yes, NZ is appealing for developing intellectual content, i.e. Books, movies, at least the Harry Potter fantasy style surely fits local values.
5. Resource - NZ is quickly closing its options off here. Don Brash would tell you that NZ has resource potential, but its only offshore, and it is substantial, but with Rena, maybe such projects will never get off the ground. Oil looks like NZ's only hope in this climate.

Personally NZ is the only place I'd buy in NZ at this time. It should be annexed by Australia. The problem of course is that its not light until 9am in winter. But it is just 3 hours to Sydney.

My advice is - leave the millionaires alone - they are not the problem. Its your political system which makes millionaires the scapegoats for Labour/Democratic Party reactionaries around the globe. Its the modern version of witch hunt. The media loves a tragedy; so they will willingly jump on such stories, scarcely knowing what the real story is. But then they were raised or nurtured by liberal academics detached from the real world.

Friday, February 10, 2012

Pike River Coal Mine Disaster: The cost of public administration

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The Pike River coal mine disaster highlights why you cannot rely on government to be engaged in operating or executive roles. There are several problems:
1. They are idiots - they do not know about life. Their entire thought process is antithetical to critical thinking. They are modern-day serfs; not suited to regulation or monitoring under the current system of govt.
2. They have a conflict of interest - The Pike River Mine was owned by the operating & marketing company Pike River Coal. This company was listed in Australia and NZ; but in reality the company was not so independent. It was substantially owned by Solid Energy; a 100% government owned enterprise. You can imagine how little compliance or accountability will result when you have two idiots talking to each other.

In the context of this case - a disaster was imminent:
1. The lack of public oversight
2. The gassy coals
3. The lack of UG mine experience
4. The recruitment of poor staff - those that couldn't get a job in Australia for 2x the wage.

Read this article. The problem here is public adminstration under representative democracy - it does not matter whether it was a Labour Party or National Party government. i.e. Labour cut coal mining inspectors; and National Party could equally care less.

Wednesday, February 8, 2012

NZ considering fees on national park entry

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It appears NZ is going the path of Australia and introducing fees upon entry to national parks. There are a number of issues:
1. Fees for what? The problem with such fees is that there should be some service attached to the fee. They should not be for general revenue raising; not to fund wildlife studies, but for the improvement in services that park users want, i.e. Toilets, information centres, walking trails. I frankly think NZ has under-invested in walking trails. I have driven around NZ several times, and you seldom find a walking trail, they are always poorly marked, so you inevitably get lost, wondering whether the trail is the 4WD track. I got lost in Mt Cook glacial walk because what I thought was a side-track to a pond never actually rejoined the trail. Not lost in the sense of dangerously disorientated; but mislead. It should not have happened.
2. Fees for whom? The idea of only charging foreigners is ridiculous. NZ'ers use these facilities as well; charge NZ'ers and keep the fees lower.
3. Fees for extortion: I personally think NZ is already charging excessive fees in some areas, i.e. the fee charged at Rotorua's hot springs is unreasonably high; and I'm inclined to believe its extortion by the local Maori communities who tap into this revenue stream, and probably do no work to maintain it. i.e. Just relying on Pakehe contractors to do everything...and live it up on the cashflow. I have no idea; just suspicious, as this type of jibe is not new to the world. Its the same with Uluru in central Australia. They apparently 'own' Ayers Rock because they saw it first, turned in into a mystical symbol. We really have to stop granting property rights to people who see things first.

Clearly some national parks justify fees; others don't. The greater the attraction; the greater the prospect of having visitors and them being prepared to pay fees....but please, do anyway with the idea of extorting wealth from people; it just stops people from doing anything. I've still not been to Rotorua. I refuse to pay $130 for a family to see a natural phenomenon; knowing that there are bus loads of tourists. They are not spending millions on maintenance and salaries each week...they are doing it because they can.
You can argue that its Maori property (or public Crown land), but I would argue they did not see the value; they had no notion of property rights, and they certainly did not 'earn it', and don't deserve it merely by being empowered by liberals to extort wealth. They can't even find good use for the money.

Tuesday, February 7, 2012

The Maori Holocaust - a point of reflection

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A NZ Maori academic has angered New Zealanders for comparing the colonialisation of NZ to the Maori holocaust in the wake of Waitangi Day. The question is whether the comparison is legitimate - or whether these comments were an effort to extract sympathy concessions from the colonisers.

In some respects you can say that the colonisation of NZ was analogous to the Jewish Holocaust. Consider that a very large proportion of the Maori population died with the introduction of European diseases; there were also battles with the army and skirmishes with settlers which were also going to take a toll on their population as they fought the European colonisers.

But there are some important differences as well. For instance,
1. The Maori did not develop their intellect sufficiently (largely because of their collectivist roots, lack of protracted struggle and small population) such that they confronted resilient, sophisticated enemies nor develop an enlightened theory of values, i.e. A framework for the development of personal rights. They would hence remain collectivist and some defiantly so.
2. The Maori had some element of empowerment in the sense that they were able to launch warfare themselves. The NZ Crown was responsible for Maoris, so as custodians they did tend to take steps to protect them, even if those efforts were under-resources, too little, too late, and subject to rationalisation.

I am inclined to say that there are no descendants able to complain about European colonisation; but this does not end the story. Maoris are today living in a certain context which was the result of NZ occupation. I would however be more worried about the context in which they are living today, not the injustices of centuries past. Why? Well, irrespective of whether they were treated well or not, in many respects they were treated better than the Pakeha (NZ colonialists). The reason is that NZ colonialists had to confront Maori attacks. They had greater resources at their disposal, but they had in some respects been subjected to the interests of the government more than the Maori. Maoris were eventually given land, and their grievances carry more weight today than 'British subjects' because there is some recognition of the plight of Maori....but there is no recognition that Pakeha are suffering; and that is because Westerners are more inclined to repress their subjugation. i.e. Pakeha are economic slaves to the government; forced to provide welfare support to Maoris; not because we like being slaves, but because we are forced to contribute to a form of government which does not solve the problem.
We might ask what was the nature of Pakeha subjugation to the British government; now subordinated to the NZ parliament. Well, its nature is that Pakeha are assumed to have certain rights as citizens; but this is 'conveniently' not a comprehensive or effective range of rights, such that they are actually slaves working for the sake of political middlemen; largely while many Maori live on benefits. We are not accustomed to treating benefits/welfare support as 'suffering' - more as 'support', but this is not entirely accurate because it is akin to child abuse to pander to Maori indulgence, and this is what the Pakeha have done to appease the political influence of modern-day Christian liberals as well as concrete-bound Maori who don't look beyond their short term expenses and consider their long-range self-esteem. There is no doubt that Maoris need support, but it has to be conditional upon certain objective standards. If its not; then the current issues of child poverty, high unemployment, high illiteracy and the current 'guilt industry' are destined to polarise NZ'ers into racial divisions.

Maoris are deserving of empathy; but Maori (in their sustained suffering as a result of poor Pakeha public policy) should not forget that Pakeha are deserving of empathy as well. This might not be easy when you are a sufferer, but its a prerequisite as a believer in justice. We have to rise above our concrete context, and think as intellectuals. Sadly, that message is lost upon both Pakeha and Maori. Its not about whose suffering was worse: its about how to expunge what still remains; a dissatisfaction with the current state of affairs. Let's not turn this into a race issue; but focus instead on the question of delivering our expectations to government. The consternation of Maori ought to be shared by Pakeha and vice versa. Their common enemy is the government which:
1. Denies everyone personal sovereignty - whether Maori or British 'subjects'
2. Specifically a lack of economic rights - the govt right to tax needs to be at the people's discretion otherwise there is no prospect of accountability
3. This discretion need not be a financial discretion - but plausibly an intellectual discretion
4. The basis of our political discourse needs to be rational - not majoritism or 'numbers' based extortion of political influence.

When Maori and Pakeha jointly grasp that possibility; only then will they realise that representative democracy is not serving them; and that only a meritocratic democracy will. A meritocratic democracy is not a aristocracy; its a forum for rational discourse. It is a forum which affirms the interests of the rational; whether they are one person or 1 million; whether they are NZ or foreign citizens. Any other framework is a basis for abuse. If the option existed in the 18th century, it might have prevented the settlement of NZ. Its hard to say; as ultimately this political system had to develop. But unlike the contemporary system, a meritocracy will advance people's thinking, and not result in the systematic 'dumbing down' of voters we see today. More is said on this issue of course in politics blog.


'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.


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