Hi Guys

Newsletter from Doug Woodyard of hotpropertyinvestments:

July 2004 Newsletter
ARE WE BOOM, BUST OR CONSOLIDATION?...

Hi investors, this is our second "state of the property market update" for 2004.

The features of this current phase are:


The basic fundamentals within our economy are still strong

Inflationary pressures are pushing interest rates up

The Government indicated several weeks ago they wish to increase immigration numbers to their peak of a year ago

Very high numbers of inner city apartments due for completion will impact on the CBD within the next two years

The market in Sth Auckland has been very strong. We have experienced record sales. Activity has levelled out in the last month but interest is still very steady.

Auckland City and fringe areas appear to have peaked with prices stabilising
What this means for you


The market has entered its traditional slower winter period

Demand is still steady in the South. In the City and fringe demand is low which indicates they may be entering a "buyers" market. Ensure that you are poised to take advantage of this!

The increase in immigration could impact very positively on the market
The Economy


The economy is still strong despite being affected by the strong dollar and interest rate rises

Demand is very high for our primary produce. Tourism is also strong. (These are our two biggest earners!)

Expect a consolidation / soft landing next year not a recession

The likelihood of further modest interest increases are possible in 3 mths.
The Outlook

There are really positive signs over the horizon;


Our major trading partners (US and Japan) are showing signs of recovery. This means higher commodity prices

The world market forecasts are very positive

NZ employment figures are strengthening

A falling $NZ which will greatly assist our economy

Expect a spin off of more Kiwis returning home as the terrorist situation creates global uncertainty

Watch out for the enormous positive impact for us with The China Free Trade Agreement

A possible downside is, the volatility in the Middle East and the threat of an oil crisis (having your rental properties close to amenities will be an advantage)
Handy Tips

Here are some handy tips that will ensure you are optimising returns on your investments. It also ensures maximum security should the market conditions vary.


Visit your tenants. Take a lotto ticket. Develop a relationship with them. Show that you respect and care for them and that their well being is important to you.

Ask your tenant if there is anything you can do to make the property more comfortable for them.

Maintain your rentals to a good standard. Call us if you want recommended tradesmen
Summary


With the basic fundamentals within our economy still strong and the improving global markets there is the potential for further growth within the property sector

Winter is always a slower sales period (often a good time to get out there and look aggressively as there is less competition)

Above all else it is important to buy high return properties at below RV to ensure maximum flexibility

Look after your tenant. They are your life blood

Believe in your investments, remember property investing "long term" brings wealth ? historically Auckland has always gained in value.
As you have read, the market in some areas is possibly consolidating. However, regardless of this it is a time to have a good look at your investment portfolio and be a prudent and successful investor;

Please do not hesitate to call us if you have any queries or wish to discuss your portfolio.

Happy investing.
Doug and the Team
Property Investments Ltd
Phone: 09 239 0490
Fax: 09 239 0420
[email protected]
www.hotpropertyinvestments.co.nz
Regards