From afar, New Zealand is a utopia — beautiful landscapes, decent people and good weather.
The country has open markets and a peaceful history. Most importantly, it’s pristine and isolated.
Look at the world from the perspective of a mufti-millionaire. There is financial/political uncertainty and environmental degradation everywhere. New Zealand is an oasis in the South Pacific.
In Bill Gross’ latest investment outlook he hints at the allure of New Zealand to those who can afford it.
We ask ourselves frequently at PIMCO, what else could we do, what else could we invest in to avoid the consequences of financial repression and negative real interest rates approaching minus 2%? … One of our Investment Committee members swears he would buy land in New Zealand and set sail.
People are doing it. Film director James Cameron is among the rich who are hoarding land in New Zealand.
New Zealand realtors are selling million-dollar homes as soon as they hit the market.
Auckland’s property market has had a booming January, with one real estate company selling 78 per cent more homes worth more than $1 million than the same month last year.
It’s not New Zealanders buying those homes, it’s Chinese who want offshore assets.
The trend has been going on for awhile but I believe it will last for years, maybe decades. It’s a pure play on a worsening environment and global financial instability — how can you bet against that?
What it meas is that the New Zealand dollar will be perpetually overvalued and rising.
