Top 5 Property Investment Mistakes New Zealand Investors Make
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my choice is 1STMILLIONROAD, easy to find online.
Good illustration on which mistakes to avoid!!
Deluded. Not all crashes evolve the same way. This is how it will play out. Commodity prices have been slammed over the last year. EMs have borrowed about 9 trillion on the back of good commodity prices over the last cycle, now that prices have collapsed, their currencies have collapsed, the 9 trillion in USD will not be looking very cheap anymore. The Fed has been printing the default currency since 2009 and has flooded the world with cheap liquidity causing property and asset bubbles everywhere, take your pick which country you want to chose. There is about 600 billion in bonds that financed the shale plays in the USA and we know where oil is heading. Then we have the bond bubble which is the mother of all bubbles, when this finally bursts there are going to be multiple sovereign defaults which have already began. All we need now to set all this in motion is an event that will cause a rally in the dollar. I think it will be Turkey, they will introduce capital controls and default on their bonds. Interest rates will shoot up very quickly to reflect the increased risks in the markets. This will be a global event, you could see countries the size of Japan default, this will bring on a cycle of deflation like you have never seen before and will last about 5 to 10 years. Don't ever think that it is different this time. The laws of mathematics are universal. You could see property prices collapse to 2000 levels. Take a look at Japan, real estate prices are still 60% down today compared to their 1992 levels. This is what happens when there is too much cheap liquidity in the markets.
Interesting!
I think one of the important areas to understand when purchasing property overseas is protecting your capital during FX exchange. Online brokerages help preserve capital more effectively than traditional banks..