Originally Posted by
xafalcon
Who would have though NZ inflation would be running below 1%. Interest rates look like they could fall further, definately won't be rising. Pay rises are generally 2-4% for those who get one at all. Net population loss to Aussie is almost zero. Hard and soft commodities are trading at multi-year lows. Auckland house prices are caught in an invester frenzy that will end in tears for those who jump aboard just before the inevitable correction. We are living in a NZ (and a world) like we haven't known before. Throw in the Fed interest rate uncertainty, which is indirectly linked back to the performance of the world economy, and the picture becomes even more unclear.
In this low return environment (except for Auckland houses atm) in my opinion a 10% gross return on a passive investment with tangible asset backing sounds pretty good to me. If it falls to 8% next year, it still sounds good. At 6% I would look elsewhere.
This is just how I assess an investment, by comparing it to other investments. I'm not saying this approach is right and others are wrong. But I believe current SP and dividend yield is tough to beat elsewhere. Maybe futures are worth a look???