Listen to Tony
$700,000 x 25% Growth = $175,000 tax free?
But that’s more than I could save in 10 years…
Time to ring Martin!
Is it that simple?
Yes.
Nearly self-funding?
Yes for most.
You already know all this from my website video but some of us take time, so let’s start again…
The only economist you should read is Tony Alexander (www.tonyalexander.nz) who enjoys a special relationship with the Real Estate Institute of NZ and who gets to directly lobby its members.
And being an academic his take on polls and responses is somewhat more measured than what an enthusiastic salesman like me would deduce.
But here’s the rub.
In Tony’s latest article (Herald 20/11/23) he detailed his prediction of a 5% increase in NZ housing over 2023…..I believe we’ve had that, but………..an expectation of 10% in 2024 and 15% through 2025.
On our standard purchase of a $700,000 Brick & Tile that’s a whopping $175,000!
And that’s for the whole of NZ, not the main driver of wealth, Auckland, which traditionally outperforms the balance of the country.
I honestly believe his predictions are conservative but surely an urgent call to action?
And there are already feel good positives coming out of the Fourth Estate with the new government barely sworn in.
If you missed it a great news pearler passed my desk on 17 November with the curious understatement of a headline…….’The Technology Investment Network (me neither) reports an industry “in rude health”…(true quote)…and expects GDP performance approaching $17b in the coming year’.
Read it again – I’ve done it aloud and with one finger.
Our main export earner, Dairy, is currently $21b and they’re expecting to exceed Dairy next year …(and with what carbon footprint?)
Meat & Wool is $12.3b, Horticulture $6.8b and Forestry $6.6b.
Who are these dudes?
Well Rocket Lab (a bit of carbon there I guess), Xero, Pushpay, Fisher & Paykel…..never heard of the others but we’re going to be bombarded with unexpected good news from now on.
The depressing granny statists are back in their pen, the shackles are off and NZ’s going to boom.
For your academic interest, and to be fair, before Covid and the bad fairy, NZ Inc was expecting surpluses of:
2019: $5.4b (actual)
2020: $5.5b …….became a deficit
2021: $6.0b …….. “ “
2022: $8.3b …….. “ “
(Figures NZIER 2019, NBR)
So we actually do make money, and good money.
I’ve predicted in my website video massive opportunities in avocado, salmon, and wool along with the rapidly resurfacing Education and Tourism behemoths but Technology? And Rocketlab doesn’t even have to book takeoffs around flight traffic like they do in U.S.A. and just can’t in heavily populated Europe.
So what do these spurts of good news mean for you and me?
They mean our land of milk and honey and technology is entering an era of prosperity not seen before and certainly not envisaged by most.
That means continued and more sophisticated immigration and pressure, pressure, pressure on rents and Auckland residential pricing.
To live your life as a permanent tenant in your own wealthy country would be cruelly ironic, would it not?
And your landlord might even be an Australian……..I’m buying for them regularly.
But I’m determined MY clients aren’t wandering malls in trackpants aghast at the cost of coffee, bewildered at the Golden Years with no gold. I want you taking the grandkids to the Gold Coast.
We need get going or you’ll join the “we should have listened to Martin” set…!
Cheers,
Martin
