Blog 4
The article posted by the New Zealand
Herald forecasts about how an overseas hotel business is planning on investing
$40-$50 Million dollars a year for 7-8 new properties in New Zealand. This will
be a very good investment for New Zealand as it will result in strengthening
the property market and therefore will have a return effect and may take the
ease off first time home buyers.
The investors want to look into regions
in New Zealand such as Auckland, Wellington, Christchurch, on the West Coast
and Queenstown. "Choice does not intend to have new properties developed
for it but instead wants to take over existing properties via a franchising arrangement"
(Fraser).
Main focus point featured in the
article: Investors bring money into the New Zealand property market could mean
good things for future house purchases.
This article relates to Welly
Real-estate in that it is evidence towards future stability for the property
market.
Advise for Welly Real estate would be to
keep a close eye on the lower end of the market and to keep monitoring prices
on the lower scaled end of the property market as there could be a flow on
effect that as the property market becomes stronger then the prices may start
to steady out and those people wanting to break into the property market with
minimal funds and criteria for lending will be able to do so.
Work cited:
Gibson, A. "Hotel operator
planning up to $50 million investment in New Zealand". Web. March
25. 2014.
http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11224913.
Fraser, T. "Hotel operator
planning up to $50 million investment in New Zealand". Web. March
25. 2014.
Ninness, G. "Insiders guide to
investing in rental property". Web. April 7.2014. http://www.stuff.co.nz/business/money/9539298/Insider-guide-to-investing-in-rental-property
Helm, A. "Interest rates
rise". Web. March 24. 2014.
http://www.interest.co.nz/property/69100/alistair-helm-assesses-how-property-market-will-react-and-handle-coming-interest-rate
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