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Welcome to our September Newsletter - Topics are: Have we been looking in the wrong direction for lucrative property investment?  Housing Market Mayhem... What does the future hold? Business Banter Tax Talk

 

 

Index

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Have we been looking in the wrong direction for lucrative property investment?
 
  • How do you get ahead of the Trend?
  • Can Property Market movements be more accurately predicted?
  • If property demand drives supply, what drives demand?  Birth rates?  Can birth rate trends over the last 70 years be a Property Investment predictor now and 50 years into the future?                                                                 
  • How can we use Birth Rate trends to predict ...
·         Student numbers
·         Rental demand
·         First Home Buyers
·         Mortgage demand
·         Interest rates
·         Beach Bach prices
·         Granny Flat demand
  • What is the 1:1.74 ratio?  And how does this ratio affect house prices?
  • Are Palmerston North house prices about to jump as much as 60% over the next 2 years?
 
We are planning to host a seminar covering these topics, and more, on Saturday 2nd November 2013.
We have also gathered together three guest speakers with expertise in property and finance.  
To register your expression of interest please contact us, we would love to hear from you.


Housing Market Mayhem... What does the future hold?

The longer home buyers hold off the more house prices will rise...
Housing may remain a seller's market till about 2017-18. Current moves by the Reserve Bank may lead to a spreading of house price rises from Auckland and Christchurch to other parts of the country. The longer home buyers hold off the higher prices will go.

Those holding off since the end of 2008, because they believed forecasts that house prices would collapse 40%, are now facing average Auckland house prices instead near 40% higher than they were back then.

It may be 2017-18 before the market may shift once again from a seller’s to a buyer’s market in which buyers would be able to pick and choose from a good range of houses on offer, even though the prices may not correct downward by all that much if at all.

Rising gains in the population due to migration will put further upward pressure on house prices.  The Reserve Bank's moves to introduce “speed limits” on high Loan to Value lending will have an impact on the rise in house prices, but by how much is unknown.  This is new territory.                                          
                                                                                                                        

Prices are rising in response to catch-up buying from investors and first home buyers running into a worsening supply situation that will not change much this cycle, given accelerating population growth brought about by a migration boom, this will put even more pressure on the housing stock.

Eventually the Reserve Bank may be forced into a period of catch-up increases in interest rates possibly March 2014, but how will this affect the dollar?  If the dollar goes up, inflation will go down and yet inflation pressure is already low.

Before then some house buyers may shift their attention out of Auckland to other, cheaper, parts of the country where their deposit will go further and those returning may well move out of Auckland.

So, the Reserve Bank's move will have the effect of accelerating the spreading of Auckland and Christchurch house price gains to the rest of New Zealand, with the spread of ultra-fast broadband encouraging this population spread also, to some degree.

The tightening of the LVR rules may also stage a revival of the Auckland apartment market with demand from buyers for good location, lesser-priced properties.
The alternative for many will be either forgoing home ownership this cycle, buying further away from the city centre, or shifting elsewhere in the country.

One positive effect of the LVR rules is interest rates are likely to be held back by 0. 3%.


Business Banter...
 
Search Engine Optimisation (SEO)
Use Search Engine Optimisation to direct traffic to your website when potential clients are looking for specific products or services that your business could provide.
Search Engine Optimisation enhances the visibility of your website or web page in a search engine.  Leading search engines use software called ‘crawlers’ that scour web pages to find information that matches their search results.  The importance of SEOs is that people searching the web want prompt immediate answers and generally click on the first results they see.  Being at the top of the results list will mean your business is the first port of call, not your competitors.

When you use search engines such as Google or Bing, the results listed at the top represent companies with good SEO skills, meaning they have been savvy in order to gain a higher search ranking.

There are some simple steps to help your website or company blog appear in a higher ranked position in web searches:
 
Keywords:  Include key phrases that are relevant to your business and that will direct people to your site.  If you want to find out what people have been searching for, Google provides a service where you can enter a particular word and they will give you statistics on how often it is researched on the web.  These results are also put into context in terms of what the search refers to, so you can streamline your key phrases and target prospective clients accordingly.  A key to remember is not to make your words too specific, or too broad.  They must always be relevant to be picked up in a search.

Cross-link:  Cross-linking is the process of linking two or more pages from your site together to increase visibility in search engines.  You can also cross link to other related websites that have agreed to be linked to yours in some way.  Do your research on cross-linking first.  Some search engines will penalise you for overdoing the linking within your site.

Up to date content:  When the search engines perform their regular crawl, they are always looking for new and updated content.  If your content is out of date, it may be missed and you automatically have decreased chances in gaining a higher ranking.  Remember to research, track and update keywords regularly.  If you feel overwhelmed or that your time is limited, there are many marketing and web professionals available to assist with driving traffic to your site. 
 
 
  
Tax Talk...
                             
         

Repayment exemption for some full-time students

If you employ full-time students in your business they may qualify for a student loan repayment exemption.
If they’re working for salary or wages and expect to earn under the annual repayment threshold ($19,084 for the 2014 tax year) they can apply for a repayment deduction exemption.

Students who qualify can apply for the repayment deduction exemption through their myIR secure online services account.

If they get the exemption, they’ll need to give you a copy of the exemption certificate.

Note: Earnings include any NZ Super, veteran’s pension payments or student allowances received in the tax year.

New Zealand Business Number

Kiwi businesses will soon be given a single number to use when interacting with government – the New Zealand Business Number (NZBN).

NZBN will make it easier for businesses to communicate with different government agencies and offers the opportunity to reduce costs, time and effort by removing duplication which can add costs to Kiwi businesses.

It will also create opportunities for innovative business-to-business e-commerce that will enable government agencies to integrate services – reducing the need for reputation of information for businesses.

The initiative will be accompanied by a comprehensive public register of all businesses in New Zealand. By providing a single register of businesses, businesses will be able to interact with each other more efficiently – paving the way for new and innovative e-commerce opportunities.
 

Helping small businesses make the most of Ultra-Fast Broadband

Ultra-Fast Broadband (UFB) could reduce your costs and boost productivity. The Digital Enablement Training programme is underway to help small businesses understand the practical benefits of UFB.

Supported by the Ministry of Business, Innovation and Employment (MBIE), the programme is available to Kiwi businesses through the New Zealand Trade and Enterprise Regional Business Partner (RBP) Network.

Businesses approved through the RBP network will receive a capability voucher, covering half the cost ($400). The course can also be delivered on the open market as required.
Minister of Communications and Information Technology, Amy Adams says faster broadband can deliver greater productivity and lower costs, but small businesses need to know how to use it to maximum effect.

 
 
Thought for the month: At every moment, there is a decision to make that will affect the rest of my life - Keith J. Cunningham

 
 








Shane Storey
Managing Director 
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Storey & Associates Ltd
234 Broadway Avenue 
Palmerston North  4414
New Zealand
Phone: 06 355 4647
Fax: 06 355 4637 
Email: administration@storey-associates.co.nz
Website: www.storeyandassociates.co.nz


"We don't just write history, we help clients create it."

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An important message: While every effort has been made to provide valuable, useful information in this publication, this firm and any related suppliers or associated companies accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.