For the first time in several years, the number of NZers interested in investing in residential property has declined significantly.
The annual Nielsen Real Estate Market Report last year, found 25% of those surveyed intended buying residential property as a future investment. In stark contrast this year just one in seven want to get into the property investing market, the lowest level in the history of the survey. Specialist property lawyer and Partner at Simpson Grierson Greg Towers says “this survey confirms what we have observed; there has been a measurable decline in the number of transactions involving the traditional property investors.”

There is also a very clear intention among investors who own property to hold rather than sell, which is a clear indicator of why the property market in general has slowed significantly. Alistair Helm, CEO of Realestate.co.nz says “the survey highlights the caution around the market at the moment. Holders of investment property showed a 42% decline in intention to sell, which is a huge decline.” In the space of a year, there has been a 24% increase of intention by property investors to seek out private sellers.

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A personal lifestyle guide for you, to help you enjoyt life with more money and better health. Live a richer healthier life. Covers health, finances, career, relationships, learning, recreation and spirituality, personal development and motivation, food & diet, personal investment, legal issues, property investing, home improvement, sexuality and improving your lifestyle. Published 22 times a year.

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The challenging market conditions and general uncertainty have been circling the industry for a while but this survey represents the first published data since the announcement of Budget tax changes to property investment. Tony Boyte, Research Director for The Nielsen Company’s Online Division says “the property boom made it easier for people to predict market trends. Recent events seem to have muddied the waters over how much, up or down, price has moved. From our research, this appears to have caused people to put plans to invest in residential property on hold.”

For the first time in several years, the number of NZers interested in investing in residential property has declined significantly.

The annual Nielsen Real Estate Market Report last year, found 25% of those surveyed intended buying residential property as a future investment. In stark contrast this year just one in seven want to get into the property investing market, the lowest level in the history of the survey. Specialist property lawyer and Partner at Simpson Grierson Greg Towers says “this survey confirms what we have observed; there has been a measurable decline in the number of transactions involving the traditional property investors.”

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NEW ZEALAND HEALTH & WEALTH REPORT
A personal lifestyle guide for you, to help you enjoyt life with more money and better health. Live a richer healthier life. Covers health, finances, career, relationships, learning, recreation and spirituality, personal development and motivation, food & diet, personal investment, legal issues, property investing, home improvement, sexuality and improving your lifestyle. Published 22 times a year.

To subscribe http://www.health-wealth.co.nz/home/special-introductory-offer

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There is also a very clear intention among investors who own property to hold rather than sell, which is a clear indicator of why the property market in general has slowed significantly. Alistair Helm, CEO of Realestate.co.nz says “the survey highlights the caution around the market at the moment. Holders of investment property showed a 42% decline in intention to sell, which is a huge decline.” In the space of a year, there has been a 24% increase of intention by property investors to seek out private sellers.

The challenging market conditions and general uncertainty have been circling the industry for a while but this survey represents the first published data since the announcement of Budget tax changes to property investment. Tony Boyte, Research Director for The Nielsen Company’s Online Division says “the property boom made it easier for people to predict market trends. Recent events seem to have muddied the waters over how much, up or down, price has moved. From our research, this appears to have caused people to put plans to invest in residential property on hold.”

In a previous issue I said Kawarau Estate was the only NZ winery invited to this years’s International Pinot Noir Celebration in McMinville, Oregon.

I was told this when invited, but on arrival I was pleased to find Pegasus Bay from Waipara and Churton Wines from Marlborough were also present. The Pegasus Bay 2006 Prima Donna Pinot Noir stole the show on the first morning with the first formal tasting where one of four wines was matched with a different lamb dish. The wine was a lovely dark colour and displayed berry and plum flavours with a silky tannin finish. It blitzed the Domaine de L’Arlot 2004 Clos de Foret St George from Burgundy, the 2007 Dutton Goldfield from the Russian River in California and the 2007 St Innocent from Oregon.

Indeed all three NZ Pinot Noirs did the country proud. The 2008 Churton and 2007s from Kawarau and Pegasus were constantly remarked upon by attendees as stand out wines. In part this reflected the lower alcohol levels in the NZ wines and the more sophisticated use of oak. Winemakers from Burgundy seemed impressed also. My favourite moment was when one of the Meunier brothers from Domaine Jean-Jacques Confurin came up to me to advise he recognised my wines well. There were several bottles in the cellar he tends every day. But it was only in Oregon he was able to try the wine. He now understood why his parents were wanting to keep it unopened.

Several of the French winemakers came back for second and third samples and at dinner I noticed they were hoarding the NZ wines. Florence Leriche from Domaine de L’Arlot in Nuits-Saint-Georges advised me the Burgundy contingent had loved the NZ interpretations of Pinot Noir particularly the fruit rich styles from Central Otago. Another one of the French joked it was just as well for Burgundy they had a thousand years of history on their side and a reputation for wines which age for many years. Over the next few issues I shall review some of the interesting wines I tried from the US at this event, the event itself, and some trends emerging in the wine business.

Good news if you are a Trade Me user - Freightways has launched a new service to cater specifically for customers buying and selling on the auction website.

Freightways’ “Pass the Parcel” service has been created to provide a solution for Trade Me members when it comes to organising the delivery of items sold through Trade Me. Post Haste is the Freightways courier business which will manage the new service. Freightways says the new service is needed because of the high number of deliveries Trade Me generates and the unique requirements of the Trade Me customer base. More than 250,000 items are bought and sold through Trade Me each week.
The new service will pick up items from most homes or workplaces throughout NZ and Trade Me customers can access a user-friendly website to obtain a quote online, pay online, order packaging online, book a pick-up online and track and trace their item online, or if they wish, they can speak to a dedicated service representative on 0800 727 784.” “Pass the Parcel” is at <www.trademe.co.nz> or <www.passtheparcel.co.nz>

Latest data from valuation agency QV shows a “do-nothing” sentiment is gripping the property market and the number of house sales is down a third from a year ago.

It says house values are 4.1% above the same time last year, but values in main centres have been falling since March, and are 4.7% below the market peak of late 2007. QV figures show the national average house sale price rose to $407,191 last month - from $404,715 in June - because fewer lower-value properties were sold. The valuation agency warns lack of demand and an increasing number of unsold houses are pushing values gradually down. But on the positive side there is no rout in the offing like in 2008.

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A personal lifestyle guide for you, to help you enjoyt life with more money and better health. Live a richer healthier life. Covers health, finances, career, relationships, learning, recreation and spirituality, personal development and motivation, food & diet, personal investment, legal issues, property investing, home improvement, sexuality and improving your lifestyle. Published 22 times a year.

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The number of house sales is down about a third from the same time last year and is a third below the long-term average. QV says “it’s not that people are negative about investing in property. It’s more a case of do nothing.” Many people seem to have decided against being active in the property market, and are focusing instead on repaying debt, while those in the market are finding it harder to get finance. QV is warning sellers not to expect a spring bounce to the market this year.

Auckland region values are 6.9% above last year. A month ago they were up 7.9% on last year. Recent declines in values in Wellington City mean values are now only 1.8% above last year’s. Values have been flat in Christchurch and are now 4.6% above 2009’s. Dunedin values are 3.7% above last year’s, down from 5.8% last month. But values in Hamilton and Tauranga have been stable for the past year. Hamilton’s are 0.3% above last year’s, and Tauranga’s 0.5%. Values in most provincial centres remain above those for the same time last year, although the gap is closing.

Latest data from valuation agency QV shows a “do-nothing” sentiment is gripping the property market and the number of house sales is down a third from a year ago.

It says house values are 4.1% above the same time last year, but values in main centres have been falling since March, and are 4.7% below the market peak of late 2007. QV figures show the national average house sale price rose to $407,191 last month - from $404,715 in June - because fewer lower-value properties were sold. The valuation agency warns lack of demand and an increasing number of unsold houses are pushing values gradually down. But on the positive side there is no rout in the offing like in 2008.

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NEW ZEALAND HEALTH & WEALTH REPORT
A personal lifestyle guide for you, to help you enjoyt life with more money and better health. Live a richer healthier life. Covers health, finances, career, relationships, learning, recreation and spirituality, personal development and motivation, food & diet, personal investment, legal issues, property investing, home improvement, sexuality and improving your lifestyle. Published 22 times a year.

To subscribe http://www.health-wealth.co.nz/home/special-introductory-offer

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The number of house sales is down about a third from the same time last year and is a third below the long-term average. QV says “it’s not that people are negative about investing in property. It’s more a case of do nothing.” Many people seem to have decided against being active in the property market, and are focusing instead on repaying debt, while those in the market are finding it harder to get finance. QV is warning sellers not to expect a spring bounce to the market this year.

Auckland region values are 6.9% above last year. A month ago they were up 7.9% on last year. Recent declines in values in Wellington City mean values are now only 1.8% above last year’s. Values have been flat in Christchurch and are now 4.6% above 2009’s. Dunedin values are 3.7% above last year’s, down from 5.8% last month. But values in Hamilton and Tauranga have been stable for the past year. Hamilton’s are 0.3% above last year’s, and Tauranga’s 0.5%. Values in most provincial centres remain above those for the same time last year, although the gap is closing.

Former National Party leader Don Brash has waded into the row over the cost of NZ’s superannuation, saying John Key is wrong not to signal a debate on age eligibility.

Brash says Key’s election promise not to alter the scheme is unnecessary. Dr Brash warns the cost of super will blow out, reaching 8% of GDP by 2050, a rise from its present level of 4.4% of GDP. He says universal National Superannuation is unaffordable, and the age of eligibility needed to go up from 65 to 67. NZ currently has 553,000 people over the age of 65, a number predicted to reach 1.35m by 2050.

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NEW ZEALAND HEALTH & WEALTH REPORT
A personal lifestyle guide for you, to help you enjoyt life with more money and better health. Live a richer healthier life. Covers health, finances, career, relationships, learning, recreation and spirituality, personal development and motivation, food & diet, personal investment, legal issues, property investing, home improvement, sexuality and improving your lifestyle. Published 22 times a year.

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Brash says John Key doesn’t have to introduce the changes while in Govt. “We don’t have to do this in a hurry, it doesn’t have to be done today or tomorrow or next year even, but let us signal for the sake of the people who are not yet retired, that they may have to work an extra six months, nine months, 12 months or whatever in due course. I think if you flag it far enough ahead, make it gradual and I’ve explained that other countries are doing it, I think it would not be a vote loser.”

Brash says acceptance of a higher age for entitlement would be greatly helped, if people were allowed much greater flexibility over when they start drawing the pension, with early drawing entailing a lower level of pension and later drawing entailing a higher pension. This would have substantial indirect fiscal benefits; more important, it should encourage older Kiwis to stay productively engaged in the community. Changes to Superannuation schemes have already begun in many other countries. The US, Germany, Denmark and Australia have all signalled they will raise the eligibility age for their superannuation schemes to 67.

Former National Party leader Don Brash has waded into the row over the cost of NZ’s superannuation, saying John Key is wrong not to signal a debate on age eligibility.

Brash says Key’s election promise not to alter the scheme is unnecessary. Dr Brash warns the cost of super will blow out, reaching 8% of GDP by 2050, a rise from its present level of 4.4% of GDP. He says universal National Superannuation is unaffordable, and the age of eligibility needed to go up from 65 to 67. NZ currently has 553,000 people over the age of 65, a number predicted to reach 1.35m by 2050.

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NEW ZEALAND HEALTH & WEALTH REPORT
A personal lifestyle guide for you, to help you enjoyt life with more money and better health. Live a richer healthier life. Covers health, finances, career, relationships, learning, recreation and spirituality, personal development and motivation, food & diet, personal investment, legal issues, property investing, home improvement, sexuality and improving your lifestyle. Published 22 times a year.

To subscribe http://www.health-wealth.co.nz/home/special-introductory-offer

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Brash says John Key doesn’t have to introduce the changes while in Govt. “We don’t have to do this in a hurry, it doesn’t have to be done today or tomorrow or next year even, but let us signal for the sake of the people who are not yet retired, that they may have to work an extra six months, nine months, 12 months or whatever in due course. I think if you flag it far enough ahead, make it gradual and I’ve explained that other countries are doing it, I think it would not be a vote loser.”

Brash says acceptance of a higher age for entitlement would be greatly helped, if people were allowed much greater flexibility over when they start drawing the pension, with early drawing entailing a lower level of pension and later drawing entailing a higher pension. This would have substantial indirect fiscal benefits; more important, it should encourage older Kiwis to stay productively engaged in the community. Changes to Superannuation schemes have already begun in many other countries. The US, Germany, Denmark and Australia have all signalled they will raise the eligibility age for their superannuation schemes to 67.

I am off again to the International Pinot Noir Celebration which is held each year in McMinnville Oregon.

60 companies are invited each year - 30 from Burgundy, 15 from Oregon, 8 from the rest of the US and 7 from the rest of the world. Only one NZ company has been invited this year, and I am honoured it is Kawarau Estate. I will report on the event and some of the wines I tasted on return.

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A personal lifestyle guide for you, to help you enjoyt life with more money and better health. Live a richer healthier life. Covers health, finances, career, relationships, learning, recreation and spirituality, personal development and motivation, food & diet, personal investment, legal issues, property investing, home improvement, sexuality and improving your lifestyle. Published 22 times a year.

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Meanwhile I have been drinking a few bottles I have picked up on my travels or around town. Melville 2008 Carrie’s Pinot Noir from the Santa Rita Hills in California was an interesting drop. A very complex wine displaying dark raspberry, chocolate and coffee flavours with a slightly lavender nose. There was a distinctly savoury character to the wine on the back palate. Unfortunately the experience was dominated by the level of alcohol in the wine. At 14.9% it masked some of the other subtle character I am sure this wine would otherwise have displayed. It was also a little expensive at $US46 a bottle.

Much better value are the Penfolds wines currently showing up in our supermarkets for between $19 and $24 a bottle. One of my favourites is the Bin 138. The 2008 is no exception displaying a strong raspberry and liquorice core flavour, and with hints of nutmeg and other spices on the side. This is a blend from older vine Shiraz, Mourvedre and Grenache. My favourite bottle of all time of this wine was one I consumed next to the pool at the Sheraton in Bandar Seri Begawan, the capital of Brunei. Brunei is dry, so I had not had any wine for about 10 days. The Australian High Commissioner took pity on us Kiwis and gave us a couple of bottles to enjoy on a night in at the hotel.

Another lovely wine, at about the same price is the Amisfield Dry Reisling from 2008. It is Central Otago grown and bottled. It has a classic citrus and lime nose. Lime and minerality are displayed on the palate. Texture wise it has a real oily viscosity. There is an acid element to the wine but I think it will last for several years.

Experts are warning most people now betting on gold going up are doing so just because gold has gone up - the very stuff of bubbles.

Punters should be sceptical of gold around $US1,250 per ounce, almost quintuple its early 2001 price of $US260. Gold ownership is commonly promoted as a hedge against inflation, but there is little sign of inflation and the need for such insurance at $US1,250 an ounce seems limited. Analysts say gold is now being more commonly owned as a hedge against the end of the world as we know it - as insurance against further extraordinary financial turmoil, but this is an unlikely event - however if it were to happen gold prices would escalate.

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A personal lifestyle guide for you, to help you enjoyt life with more money and better health. Live a richer healthier life. Covers health, finances, career, relationships, learning, recreation and spirituality, personal development and motivation, food & diet, personal investment, legal issues, property investing, home improvement, sexuality and improving your lifestyle. Published 22 times a year.

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Aside from inflation and civilisation’s collapse, ”peak” gold, the idea the world is running out of gold, is also a reason for people to but. This is also a fallacy. At present prices, marginal deposits become viable mines and supply increases markedly.