Reserve Bank Governor attempts to stop New Zealand property boom in its tracks - and fails!

"My God and saviour! How Great Thou Art!"… I'm sure that's what the Governor of the Reserve Bank sings to himself when looking in the mirror

Well, at least it would've been… if it hadn't been for the latest spectatcular rise in New Zealand property prices dealing Mr Bollard a swift and deadly kick to the groin!

Only last week, I was bleating on (in this blog) about how totally insane it was that politicians and treasury officials in this country continually do their damndest to thwart any hopes we 'mere mortals' may have for a financially free retirement……

I have been bitter and twisted about this for many years - especially the fact that successive governements have done absolutely squat when it comes to offering New Zealanders tax incentives to save for their retirement. Hells bells, I even told you about the 'quadruple taxation' that we're forced to endure with regard to our superannuation (pension) savings plans!

But a couple of days ago, I saw PROOF that no matter what the bastards in Wellington try and do to us, they won't stop us from creating wealth through strategic property investment - particularly property investment in Auckland.

I'm convinced more than ever now that the best retirement plan the average person could have would be a residential property portfolio containing four or more income-generating properties.

Take a look at this for proof…

In 1984, a villa in the Auckland suburb of Mt Eden sold for $79,000. Ten years later in 1994, the same villa sold for $349,000 — and that was despite the October 20 Wall Street Crash of '87! It was also despite the biggest property crash New Zealand has ever seen (1989 - 1991).

In 2002, this villa was resold for $620,000.

Just two years later - in the midst of the latest property boom - it changed hands for a whopping $916,000!

But get THIS…

A few weeks ago, that lowly Mt Eden villa that sold for just $79,000 in 1984, went under the auctioneer's hammer for a staggering $1,200,000!!!

Conclusion: If a small but tidy residential dwelling in Auckland can increase in value at an annualized rate of 65% pa for 23 years - despite mortgage interests rates being between 12% and 22% from 1985 until 1997; the '87 stockmarket crash; the 1989 property crash;  the recession of the 1990's; the Asian crisis in 1997; the rise in home loan interest rates over the past three years; and the ever-present numb-skull meddling by self-serving ego-centric Reserve Bank Governors like Mr Bollard…umm, you really only have one course of action left open to you!

Get off your policitically brow-beaten arses and go buy yourself an investment property or three!

Either that, or you starve in retirement:)

Which would you choose, hmm?