January 2009
Official Cash Rate Dropped from 5% to just 3.5%
Members should take note that the Reserve Bank today (29 January 2009) reduced New Zealand’s Official Cash Rate (OCR) from 5.0 percent to 3.5 percent, with Reserve Bank Governor Alan Bollard commented: “the news coming from our trading partners is very negative. The global economy is now in recession and the outlook for international growth has been marked down considerably since our December Monetary Policy Statement. Globally, there has been considerable policy stimulus put in place and we ...
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posted in: Finance
Nothing Down vs Plain Vanilla
The Plain Vanilla approach is the most straightforward in terms of property acquisition - saving the cash for a deposit and then taking out a conventional bank loan. Nothing Down is a radical approach on this traditional method and takes the desposit out of the initial equation. The appeal of using a Nothing Down technique is that in acquiring a property one does not need to part with any capital (i.e. zero deposit schemes). The maths done on a cash-on-cash return (how much cash an investor g...
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posted in: Finance, Asset Structuring
Keys to a Hot Project
As a developer, big or small, you would always want to ensure that you get the best return for your investment in achieving something outstanding. Here are five steps to make your project the hottest on the block!
Step 1: Understand your target market
Get a clear idea of
Who is going to buy;
How many potential buyers are there;
What those potential buyers want;
Why they will buy your project - i.e. what is special about them;
When they will buy; and
Where they will come from. Ste...
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posted in: Development
Simple Steps to Increase The Value of Your Home
During the property market's heated phase, home owners saw the value of their houses soar without having to do so much as lift a paintbrush - but the sands have shifted. Even long time property investor Olly Newland is surprised at the "rapidity and violence" of the burst property bubble. Damage has so far been worst for developers and high-end properties, where he has seen 50 per cent losses. But with house prices still falling in the short term, ordinary owners' and buyers' home equity will...
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posted in: Development, Landlord: Trick of the Trade