Amber Haddock "Hotel Operator Planning up to $50 Million investment in New Zealand"

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11224913

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.

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11224913.

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

Hayden Fahey - Foreign funds eye NZ commercial real estate

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11225553

Amber Haddock "Increase in OCR effecting Property Market"

http://www.interest.co.nz/property/69100/alistair-helm-assesses-how-property-market-will-react-and-handle-coming-interest-rate

Blog 3

The article presented above was written March 24 2014 in acknowledgment of the latest increase in the OCR (official cash rate). The article goes into detail about how the recent increase of 0.25% will add to mortgage payers on average for a close to 500k house about $53.00 a month and "Of equal concern to most home owners with a mortgage is the likely impact these rises in mortgage rates will have on the property market, both in terms of levels of activity and price."

Main focus point featured in the article: Increase in OCR effecting mortgage rates.

This article relates to Welly Real-Estate as it talks about how the OCR increase will effect the property market and likely to impact mortgage rates which means through the business there maybe a significant increase in house prices and scare off willing home buyers for now.

My advise for Welly Real Estate is to again push advertising and maybe decrease the amount commission in regards to hold onto potential clients and spread a name for the business if a house is sold under the business this way the business is likely increase there cliental base which will come at a small cost however will be beneficial in the long term.

Work Cited:

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

Oliver Woolley - 'New Statistics To Be Released Thursday, Predictions For The Future Are Set'

http://nz.finance.yahoo.com/news/midday-update--all-eyes-on-economic-growth-figures-as-traders-bet-on-interest-rate-hikes-234927060.html
This article outlines the data produced by Statistics New Zealand, that is set to be released this thursday the 20th of March. The data follows economic trends from the final three months of 2013 and will allow economists to make further predictions as to might happen to the New Zealand economy in the next few years. The article outlines the rise in consumer confidence and increase in net immigration, both of these factors creating increased demand for housing throughout the country, a positive sign for Welly Real Estate.

http://nz.finance.yahoo.com/news/economic-activity-boost-nzier-031014889.html
This second article also analyses data and makes predictions for the near future.
The title and focus for the article is the growth of economic activity in the next couple of years.

Both articles suggest that there will be a rise in economic activity and GDP, leading to positive outcomes for Welly Real Estate through increased demand and economic stability in the housing market.

-Oliver Woolley

Amber Haddock "Property Values Climb"

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11217224

Blog 2

The above article relates to my previous article posted on the 11th of March. 

The article published by the NZ Herald gives a comparison of the property market in the North Island, properties in the Rotorua, Tuakau and Hamilton have seen the biggest increase.

Properties in the Fordlands (Rotorua) increased the most by about 12.4% taken from the QV quarterly report.

Kuratau which is near Taurangi saw there property values decrease by 11.4% quite a significant drop and also Kaitai fell by 4.1% and Featherston and Wairarapa fell by 3.7%. In Wellington, Lyall Bay and Seatoun saw property values rise, Seatoun by the most.

Main focus point featured in the article: property values through out the country are increasing and decreasing.

This article relates to Welly Real-Estate because it states property rises and decreases all over the country and this could relate to where Welly Real-Estate aim the sales of their properties throughout New Zealand due to the increasing/ decreasing property values in certain areas.

The advise I would give to Welly Real-Estate is too continue to push sales in the higher scaled end of the market and throughout the middle and stay away from the lower scaled. Welly Real estate could look at investing in property sales in and around the Rotorua region, which are showing pleasing property potential and growth. Welly Real-Estate company could focus the business on house sales among small cities that are  on the incline towards high property value increases and if Welly Real estate discovers an opening in the market they should take up the opportunity before another company does.

Work Cited:

McCrackin, H. "Property Values Climb". Web. March 16. 2014. 

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=11217224.

Smith, D. "House prices surge in spite of loan restrictions". Web. March 10. 2014. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11213979.

Duncan, H. "House prices surge in spite of loan restrictions". Web. March 10. 2014. http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11213979.

Reserve Bank of New Zealand. "Loan to valure ratio restrictions". Web. March 10. 2014. http://www.rbnz.govt.nz/financial_stability/macro-prudential_policy/5393159.html

Josh Foster - 'Consumer confidence at nine year high'

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11220950

Hayden Fahey - Real Estate Market to Crash

http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11207102
This article expresses predictions by American economist and demographer Harry Dent for the New Zealand Property market. Harry has predicted market crashes previously, including the decade long economic decline in Japan and the 2008 global financial crisis. Harvey predicts New Zealand property prices to fall between 30% and 50% in the next few years. Due an “un-believable bubble” of high property values proper up by predominantly Chinese buyers, however the Chinese market is also in an “unbelievable bubble”, created by strong demand with little supply. If China’s market was to collapse it would initiate a market crash in New Zealand also. Harry Dent states that a collapse that could start as early as this year could create a depression rather than a recession, and the “unwinding of commodity prices” would be devastating to New Zealand’s export-led economy (Backhouse, 2014).
This article is directly relevant to the company of Welly Real Estate as the company is involved with the property market on a commercial scale and the article is relevant to the property market on a national scale. If the property market in New Zealand was to collapse the article states is predicted then Welly Real Estate will be affected directly. Dent states that a depression could ensue from the results of such a crash from China’s market, this would be devastating to the company as property de-values exponentially during economic collapse. Example, “A house purchased prior to the Great Depression in 1920 would have lost 51% of its value (in inflation-adjusted terms) by the end of 1939” (UC Davis, 2010). 
The New Zealand market is reliant on the Chinese economy (Adams, 2014). Therefore if an economic collapse in China occurs then New Zealand’s economy will be affected to a large extent. China can effectively be used as an indication of what is to happen in the New Zealand market, if China collapses then New Zealand is sure to follow. Company investments should be made with this in mind, property prices should be significantly lower in the next few years if Dent’s prediction is correct. Property sales should occur while the nation is in a “bubble” and purchase if possible delayed until possible collapse where they will be cheaper. 
Works Cited
Adams, C. (2014, March 21). New Zealand Herald. Retrieved March 26, 2014, from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11223316
Backhouse, M. (2014, February 21). New Zealand Herald. Retrieved March 12, 2014, from http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11207102
UC Davis. (2010, January 10). UC Davis School of Managment. Retrieved 03 26, 2014, from http://gsm.ucdavis.edu/research/real-estate-bubble-crystal-ball-great-depression-and-manhattan-home-prices