New Zealand economy

[wll6568]

Does anyone invest in kiwi land? I heard from my cousin who resides there saying house prices are off the roof and economy is doing so well. I wonder what fundamentals it's built on? I thought NZ and Aussie share probably the same export industries, such as dairy and farming products? Why they are doing so well and we here so bleak?..

 

[Propagate]

Does anyone invest in kiwi land? I heard from my cousin who resides there saying house prices are off the roof and economy is doing so well. I wonder what fundamentals it's built on? I thought NZ and Aussie share probably the same export industries, such as dairy and farming products? Why they are doing so well and we here so bleak?..

I have in-laws in NZ, they've been there for years. They say the polar opposite, that the economy is in the bin, houses are expensive, cost of living is expensive, wages are generally terrible and they are taxed to the hilt.

I got chatting to a kiwi the other day, he's been over here about 4 years and said same. He left looking for more prospects. He said his brother calls him and basically says once he's filled the car up and got the groceries there's very little left of his wage. He also said about how high the taxes are over there, but he qualifies it by saying there's relatively few people in the workforce, hence more tax to be paid to keep the country afloat.

I meant to look it up but he said he'd "heard" there's only something like about 35,000 working people in NZ paying income tax in a country of about 4 million, by the time you exclude the pensioners, kids and bludgers.

 

[Propagate]

Thought the stats must way off, found this:-

http://www.stats.govt.nz/

Population about 4.5m and 2.5m in the workforce.

Looks like people are moving there though? after a few years of slight population decline population rose 20+k in 2013 and 50+k in 2014.

 

[vaughan]

I meant to look it up but he said he'd "heard" there's only something like about 35,000 working people in NZ paying income tax in a country of about 4 million, by the time you exclude the pensioners, kids and bludgers.

They'd all be here in Australia, too.

 

[jpcashflow]

Hi

Hi,

NZ has peaked in terms of property and there are plenty of companies manufacturing in NZ or being used as a hub.

But as the above comments, cost of living has hit the roof, wages are pretty low hence why companies are there and taxes are creeping up.

If you are looking at property, you have missed the boat...

 

[SUNNYBILL]

The exchange rate is almost dollar for dollar between Australia and New Zealand. This would normally be A$1 equals NZ$1.20 so when the exchange rate moves back to what is normally expected then you will lose money on your investment.
NZ economy is booming because they have a great prime minister, high immigration and are getting high prices for there farming products. They have actually had 3 interest rate rises since the global financial crisis to contain the economy and control inflation. They are the only country in the world who has had to do this since the GFC. John Keys the NZ Prime Minister is a businessman who has managed the economy so much better than it has been managed in Australia.

 

[norwoodman]

Most of the current economic heavy lifting in NZ is being dominated by two regions - Auckland and Canterbury. Auckland on the back of fast population growth and services, and Canterbury on the back of the Christchurch earthquake rebuild and agricultural sectors. The rest of NZ isn't doing quite as well.

Likewise in the housing market, Auckland is about the only place where house prices are really rising at any sort of pace.

 

[SUNNYBILL]

Great article on differences between Aussie and NZ economy at link below.

http://www.watoday.com.au/business/...n-parity-with-the-aussie-20150402-1m74tt.html

 

[ellejay]

Just put all my rents up and never paid a cent in stamp. No complaints from me.