Sunday, May 13, 2007

NZ IS AN ACCIDENT READY TO HAPPEN

House prices 'overvalued by 20pc'

NZ ECONOMIES GDP LESS THAN Rio Tinto and BHP Billiton , THE CURRENCY IS ONE OF THE STRONGEST IN THE WORLD ONLY HELD UP BY INTEREST RATES, NOW THE GOVERMENT LOOKING FOR NEW WAYS TO CURB THE HOUSING MARKET The kiwi dollar is "massively overvalued" and will fall 7 per cent against the yen IN THE NEXT 6 MONTHS

Posted by chris @ 10:58 PM (487 views)
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9 thoughts on “NZ IS AN ACCIDENT READY TO HAPPEN

  • tyrellcorporation says:

    This is a big one for me personally. I remember when you could get 3.5 NZD to the pound and if it strays over 3 NZD soon, I’m off, no questions…

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  • Over valued property, over valued dollar, the largest current account deficit in the OECD (circa 9% of GDP). The NZ stock market has still not recovered from the 1987 crash when many Mum & Dad investors were stung. I hate to think how long it will take the Mum & Dad property “investors” to recover from the NZ housing crash. Kiwi’s have forgotten that NZ needs to earn money from exports (The Labour party also seems to have forgotten this) and now think that everyone can be rich by selling each other ever increasingly expensive houses with money borrowed from overseas at an unsustainably high fx rate.

    Gordon Brown is not the only labour politician in the world to have masterminded a “miracle” economy.

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  • I moved here (Auckland) a year ago and property prices are beyond ridiculous. My dilemma is that I have a house in London, so should I sell, do I wait, do I sell and purchase here – which market will crash first. Aaaaaggghhhhhhh………I shouldn’t complain as many people are struggling to get on the ladder in the first instance, and I empathise, but what to do!!!

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  • tyrellcorporation says:

    Flog your London place and sit it out!

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  • CelticKiwi – Agree with Tyrell, perhaps you could sell in London and spread the cash over a few currencies, then wait for the $NZ to weaken. Might need to wait a couple of years though. The only thing cheap in NZ at the moment is Forestry, that’s where my NZD’s are.

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  • sold 2 rent 1 says:

    Celtickiwi,

    Sell and sell now. Property is a very illiquid asset.
    Better to sell 6 months too early than a day too late.

    Once sentiment turns then selling becomes a nightmare.

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  • sold 2 rent 1 says:

    tyrel,

    NZ, nice place to live, but will there be any jobs in 2 years time.

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  • Thanks all, makes sense I guess.

    Aside from the property side of things, its a damn fine place to live.
    One thing I’ve noticed though, there are still a lot of people turning up here, all nationalities, thinking this place will make all their dreams come true. To a certain extend yes, but cost of living is quite high and many find themselves worse off than where they came from, even Brits. But I digress……

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  • I think Celtic Kiwi has gone to bed (pronounced “bid” in NZ).

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