And this is a surprise????
It seems many investors in inner city appartments (especially in Auckland) are “taking a bath” when on-selling their properties.
Perhaps it is yet another case of the good old kiwi “panic and jump onto investment opportunities after the peak has been reached” tradition.
At BarCamp last week, after my SaaS presentation I was asked a question about investment seeking for NZ IT businesses. I said then, as I say now, that I despair, the average Kiwi investor is not sufficiently advanced to understand risk, long term plays investment cycles et al. After decrying the state of the investing public in NZ, the audience asked “what then is the answer?”. For hi tech businesses either VC, see angels (neither of which are at all easy in this country – despite the NZVCA’s assurances) or go offshore (which in itself is a mammoth task).
I know Xero got away with it but they were smart/lucky/well marketed.
No easy answers I’m afraid….
