Covid-19 crisis: what landlords need to know

While we will all need to be confined to our homes for, at least, the next four weeks, life will still go on. But, for landlords, there are many questions about what that means and how they can conduct their business in a practical manner. To help out, we’ve compiled a lengthy, but comprehensive, guideContinue reading “Covid-19 crisis: what landlords need to know”

First phase of Govt’s Covid-19 support package worth 4% of GDP; Includes wage subsidies, benefit increases and depreciation deductions for commercial and industrial buildings

The Government is pledging to inject $12.1 billion into the economy in what it called its “most significant peace-time economic plan in New Zealand history”. This is equivalent to 4% of gross domestic product (GDP), which is greater than the response to the 2008 Global Financial Crisis. The bulk of funding – $5.1 billion – isContinue reading “First phase of Govt’s Covid-19 support package worth 4% of GDP; Includes wage subsidies, benefit increases and depreciation deductions for commercial and industrial buildings”

OCR reduced to 0.25 percent for next 12 months

The Official Cash Rate (OCR) is 0.25 percent, reduced from 1.0 percent, and will remain at this level for at least the next 12 months. The negative economic implications of the COVID-19 virus continue to rise warranting further monetary stimulus. Since the outbreak of the virus, global trade, travel, and business and consumer spending haveContinue reading “OCR reduced to 0.25 percent for next 12 months”

OCR Remains at 1.0%

Employment is at or slightly above its maximum sustainable level while consumer price inflation is close to the 2 percent mid-point of our target range. Low interest rates remain necessary to keep employment and inflation around target. Economic growth is expected to accelerate over the second half of 2020 driven by monetary and fiscal stimulus,Continue reading “OCR Remains at 1.0%”

Property Market Update

One of the things many of us do as investors is think about the changing financial environment we invest in, and try to pick the market trend for the year coming. I think for 2020 it is an easy pick – the market is looking very buoyant and positive for property. But property is affectedContinue reading “Property Market Update”

Chinese Stocks Plummet. Stock Market Update.

Global markets recovered overnight with US stocks climbing as gains in Amazon and Nike as well as a surprise rebound in US factory activity helped markets attempt a recovery from steep weekly losses due to concerns about the coronavirus epidemic. Chinese stocks took their steepest dive since 2015 as they resumed trading from the Lunar NewContinue reading “Chinese Stocks Plummet. Stock Market Update.”

Reform Worries

It’s been hit after hit on the policy and regulation front for investors in recent years. From the extension of the bright-line test; to new rules around the ring-fencing of rental losses; to the Healthy Homes minimum standards, it has all made the business of being a landlord much harder. The Proposed Reforms One majorContinue reading “Reform Worries”

Main Centre Outlooks in Brief

AUCKLAND: Affordability issues remain at play and a construction boom means new supply is coming on to the market. But recent data suggests the market has turned a corner after a period of stagnation. Prices should hold steady or grow slightly, but the falls look to be over. Verdict: still quiet – but improving. WELLINGTON:Continue reading “Main Centre Outlooks in Brief”

Predictions for 2020

The Reserve Bank of New Zealand’s pursuit for financial stability and resilience has seen major banks required to increase ‘tier-1’ capital within a seven-year timeframe from 1 July 2020. While we may see a lower or stable OCR in 2020, interest rate margins are likely to rise as well as term deposit rates. This mayContinue reading “Predictions for 2020”

Official Cash Rate (OCR) – No Change

The Monetary Policy Committee has decided to keep the Official Cash Rate (OCR) at 1.0 percent. Employment remains around its maximum sustainable level while inflation remains below the 2 percent target mid-point but within our target range.  Economic growth continued to slow in mid-2019 reflecting weak business investment and soft household spending. We expect economicContinue reading “Official Cash Rate (OCR) – No Change”