Here are four reasons why NZ is still a great place to invest.
- One of the lowest government debts in the OECD means we have a bit of fat for the lean times. But we borrow a lot from abroad I hear you say? Well the trend from the retail banks have been heading the other way for some time. In fact more than 70% of the retail banks funds are sourced domestically. (https://www.rbnz.govt.nz/statistics/s40-banks-liabilities-deposits-by-sector)
- We still don’t print money. With major central banks taking up money printing as fashionable we become an attractive place to invest. Would you rather be paid with real money ten years from now or with funny money from a monopoly set? We will find it easier to raise capital abroad. (just my gut feeling – im not an expert).
- Our central bank reacted early into the housing market. A lot of people abroad would be surprised to find out that two years ago macro prudential rules led to requiring a 40% deposit for investment properties. The fact that the housing market held up after this, albeit in a stable manner, would leave many foreigners scratching their heads.
- Trade war, I reckon we are in line to benefit. With many countries about to punish others in retaliation, its great to be a bystander. People still need stuff and luckily we have been competing on the world stage without subsidies for a long time. Everything that couldn’t compete has been wiped out a long time ago. This is in stark contrast to many other countries especially when it comes to farming.
