Davo Tries Again (Continued)

Over the last couple of years I’ve been developing a property at Papakura, Auckland.  Here are 2 photos showing the property before and after:

Building at Start
Finished Building

And over this time I’ve blogged extensively on the project at Property Talk: here.

Now that I have my own website, I’d like to continue the story here.  So in the coming days and weeks I’ll be updating just where things are at.

Olly Newland’s June 2011 Column

Olly Newland has written a column a couple of weeks ago that was published on the Empower Education site: http://www.empowereducation.com/which-way-now-for-the-market/212/

It makes for interesting reading.  I agree with most of it.  And often I don’t agree with a lot of what Olly has to say.

So in amongst the usual ‘As I predicted’ comments every couple of paragraphs, there’s some good info there.  Just ignore the mentoring guff at the bottom.

As an owner of some residential property, I do hope he’s right that rents double over the next 2-3 years.

However, Olly paints this as only a good thing.  That is, inflation will increase incomes, which will increase rents. But what about inflation increasing borrowing costs too.  Don’t interest rates and inflation often go up together?  So investors might be getting higher rents but they might also be paying a lot more on their mortgages.

So I guess the trick is to not be too highly geared…

Hyperbole from the Herald (again)

Here’s a hysterical article in the Herald today:

 

Greek crisis crashes on to NZ shores

By Jamie Gray and Bloomberg

5:30 AM Wednesday Jun 22, 2011
 

Greece’s Government faces a confidence vote before trying to push through new austerity plans. Photo / AP

The Greek sovereign debt crisis has claimed its first New Zealand victim.

ANZ New Zealand has been forced to defer its first euro-denominated covered bond issue due to market volatility arising from Greece’s financial crisis, as the country once again goes cap in hand to the European Community for a €12 billion ($21 billion) bail-out.

Greece’s sovereign debt woes have weighed heavily on market sentiment in Europe and around the world, making debt more expensive for any institution wanting to raise money there.

Rest of Article

 

Really? The Greek Crisis Crashes on to NZ Shores?  All that’s really happening is one Aussie bank, with NZ operations is deferring selling some euro-denominated covered calls.  I bet they’re still selling them elsewhere.

So  a big beat up basically.   But I imagine the Herald needed a ‘Greek Crisis’ story for today’s edition and this was the best they could do.