Money Matters

The pros and cons of short-stay rentals

In previous columns I have mentioned the rapid growth in short term rentals, and the opportunity it presents, especially in tourist hot spots. The growth in the number of properties listed on sites like AirBNB has been phenomenal. Some of the new... Read more

A worst best keep secret

It has remained one of those vexed questions for eternity: Why are some people wealthy while others are poor? What is remarkable about the question is that it continues to be asked, when there are many generations of examples that provide the... Read more

The year that may be

It’s been a good year for property investors in the provinces and Wellington, but less so for Aucklanders.  Speculators are no longer dominant and the Auckland property market is settling into a sideways pattern as often happens after years... Read more

The year that was

2018 has been a good year for local property investors. Property values have continued to increase while interest rates remain at very low levels.  There are no signs that this will change in the year ahead and I personally remain confident about... Read more

GST and online purchases

This week the Labour led government introduced an omnibus Bill to Parliament that when passed into legislation will, among other things, collect GST on low value imported goods.  The GST change will apply to imported goods valued under $1,000. The... Read more

Getting paid

There was an interesting story in the media last week that is worth a mention. It was a story about a company going into liquidation and owing good hard working folk some $70,000. There appears to be little prospect of recovery. The story itself... Read more

Budget 2018 – key points

A strong and growing economy is the real story behind the Coalition Government’s 2018 Budget. This is very evident from the Time Series of Fiscal and Economic Indicators which projects Gross Domestic Product (GDP) to grow $17 billion in the... Read more

Warning signs and social housing

Interest rates Last week the Reserve Bank left the official cash rate (OCR) unchanged at 1.75 per cent. That was not a surprise, but as is often the case, the commentary was a useful pointer of things to come. Acting Governor Grant Spencer said he... Read more

Mini-budget delivers on promises

The new governments’ mini-budget presented to Parliament on 14 December delivered on Labour’s promise to reverse the legislated tax cuts that were to come into effect on 1 April next year, and instead direct that money into welfare. The... Read more

LVR relaxed and mini budget looms

This week the Reserve Bank announced it has loosened its grip on bank lending, making it a little easier for low deposit house buyers. Acting Reserve Bank Governor, Grant Spencer, said, ‘LVR (Loan Value Ratio) policies have been in place... Read more