If you are new here, be sure to subscribe to my RSS feed. That way, you will receive new blog posts or articles by email without having to check this site each day. Thanks for visiting!

 It’s official - We’re in a recession… … and there's only ONE WAY OUT!

The Reserve Bank has no choice but to LOWER INTEREST RATES - and lower them in a BIG WAY!

Not surprisingly, Allan Bollard has already fired the first volley in what will almost certainly be a sustained campaign of interest rate cuts in order to ‘kick-start’ the economy back to life.

Sustained lowering of interest rates WILL ultimately lead to zero or even positive cash-flow where investment properties are concerned.

 Crude oil has plunged from US$150 a barrel in June to less than US$120 today. This has already seen petrol prices falling.

Lower fuel prices improve family cash-flows and make the debt-servicing side of home ownership easier.

 The recent spate of finance company collapses has resulted in a severe funds shortage for builders and developers.

The net result of a funding shortage in the building industry means that fewer houses are being built now – and even less still will be built in the future. Demand will exceed supply and prices will spiral higher once more.

 A little known fact about the “Working For Families” benefit may well mean that you legitimately qualify for a subsidy – even if your joint income is as much as $90K pa!

Even a modest subsidy from the “Working For Families” benefit could effectively wipe out any shortfall (i.e. mortgage top-up) that you would’ve otherwise incurred. 

 Inflation is running rampant! You only need to look at your latest supermarket receipt to realise this. The so-called 3% inflationary band per annum is a myth – real inflation is much higher than this!

Just imagine how much more it’s going to cost you for basic food items, medical care, rates, insurances, electricity and gas, fuel, consumer goods and services – in fact, your entire cost of living – when you eventually reach retirement and have no wage or salary coming in to help pay things???!!!

By taking action and investing in prime residential property TODAY you’ll be laying the foundation stones for a richer, happier ‘tomorrow’.

 The New Zealand dollar has plunged more than 13% against most major world currencies over the past few months. This, combined with current interest rate levels and our tax-friendly environment for foreign investment, is paving the way for a future resurgence by foreign investors into our local property market.

Whenever demand increases for residential property, higher prices follow.

Tax cuts announced in the May 2008 budget will come into effect on October 1st this year. Families on the average household income of $72,000 pa will receive around $43 per week extra. The tax cuts will be staggered over three years. By 2011, families bringing in the average household income will see their weekly tax cuts rise to around $85 a week.

In an economic environment where mortgage interest rates AND personal income taxes are headed a lot lower, investing in property – especially rent guaranteed property – would be one of the best moves you could ever make!