Reasons to invest in property now!
get in before the boom!
The property market follows a cycle of peaks and troughs; with the correction that's taken place over the last 2 years, its widely acknowledged that we have reached the turning point or 'the up-swing'.....(Allan Bolland from the Reserve Bank of New Zealand commented on this in his November 09 Financial Stability report).
less properties available
There are less finance companies in the market lending money to developers; this has already reduced the number of new properties being presented to the market and will continue to strangle supply.
supply of land dwindling
They are not making anymore land; sections are getting smaller and the cost to develop land is increasing - it's an absolute certainty that land will appreciate in value in the short, mid and long term...
New Zealand's population is on the up
As a result of the global recession, less people are leaving New Zealand & more ex-pats are returning home.
cheap interest rates
The cost of borrowing money is still relatively low; whilst this is tipped to increase steadily over the next 12 months there are some great rates that you can lock in now on a new property.
rugby world cup
The rugby world cup is being hosted in NZ in 2011 - this is projected to boost the NZ economy by over one billion dollars; much of this spending will be undertaken between now and the event itself.
rents are increasing
Just as important as growth in your asset value is growth on the income; with the population increasing and supply of new housing restricted, we are already seeing a rise in rental returns.
investor friendly tax laws
NZ's tax laws are the most investor-friendly in the OECD, any changes to legislation are not generally retrospective.
start retirement savings now
Increased costs of living (food, petrol etc) means you will most likely need more money in your retirement and should start planning now; in fact since 2000 New Zealand's food prices have the second highest rate of increase in the OECD.
beat the increased building costs
The cost of building a home is on the increase due to the predicted increase in wages, petrol, materials, global supply and inflation.
demand for Auckland
Auckland has just been voted the 5th most desirable city in the world to live in! This will further increase the demand for the area and attract migrants.
property is a long term investment
Auckland property values have more than tripled since 1992; in London the growth rate has averaged at 10% for 900 years.
retirement plan for the aging population
Our population is ageing; In the 1980's there were 18 tax-payers for every pensioner. In 2020 it's predicted taht there will be 1 tax-payer for every pensioner. Many people are starting to realise this and are turning to property as a way to fund their golden years.
other investment options scary
Many people lost money on shares and finance companies over the last 2 years - these people are turning to a more secure option such as property; this is pushing up demand.
