Quote Originally Posted by Snoopy View Post
I invite you to look at your sentences that I have labelled (1) and (2) SBQ. If (2) isn't a good incentive to invest overseas, then I don't know what is.

I should add that one way our property market can correct on the international comparative yardstick is for our currency to heavily depreciate relative to those comparator currencies of countries we like to compare ourselves to!

SNOOPY
Well it's an interesting point and kind of a tug-O-war. We have locals in NZ that view investments as... buying real estate and we have those in NZ that invest in shares.. looking to invest abroad (ie. foreign index ETFs). The weakening of the NZD will hurt EVERYONE (both who are pro-real estate and those who are pro-kiwi Saver that have a focus on overseas equities). Don't forget, even the savers of the NZD will get slammed as interest rates continue to tread lower.

The incentive is not simply there to invest overseas because as NZ residents, we earn in NZD - well pretty much most people make a living earning paid in NZD. We also have an issue of the NZ FMA regulation that from a tax perspective, disadvantages those that invest abroad or conversely, incentivises those to buy NZ equities despite they may have marginal performance (ie. higher corporate taxes compared to overseas corporations) + NZ equity market is like 0.4% of the global investment market.