"THE ASPEN OF THE SOUTHERN HEMISPHERE"

Dear International Living Reader,

In March 2002, US$1 bought 2.4 New Zealand dollars.

Today, that US$1 will buy you only 1.78 New Zealand dollars.

That's a difference of 26%.

The effect is noticeable for Americans traveling and investing in this country--but it doesn't seem to be deterring them. Not only Americans, but Brits and Europeans are visiting these shores in ever-greater numbers--and many are buying up pieces of it--thanks to the "Lord of the Rings" (which made the place famous) and the ongoing concern over terrorism (which has made its remoteness appealing). New Zealand is about as far from anyplace else on earth (save Australia) as you can get. Who's going to bother you on these far-flung isles?

But I expected them to be less expensive.

They used to be. A year ago, New Zealand was a bargain for the American tourist--and the investor with Greenbacks. It's still affordable, but the dollar's steady tumble over the past several months means you can no longer call it cheap.

My first day in Auckland, I was surprised every time someone quoted a price to me or presented me with a bill.

I looked at 2,000-square-foot homes on the water in this city selling for NZ$4 million. I don't call that a bargain. But maybe a good buy, given what you're buying.

The benefits of this country go beyond its distance from the worries and troubles of the rest of the world right now. It's also beautiful. And comfortable. Some of the Auckland natives I spoke with probably will take issue with this statement, but the infrastructure is good. Yes, the roads of Auckland and its suburbs can get crowded...but at least they're not littered with pot holes. Unlike the roads in Ireland, where I live.

There are flights from Auckland to most every city in New Zealand and direct flights from Christchurch to Australia. Ferries regularly shuttle people across the many harbors, even the little ones, for shopping and commuting. Once you get here, it's easy to get around.

New Zealand's economy is buoyant (it grew at a rate of 4.4% last year), and, as a result, its real estate market has been booming. Prices in Auckland have increased about 10% a year for the last several years (in New Zealand dollar terms).

But there are pockets of this city...and other particular regions of the country...that still make sense for investment.

In Auckland, I was able to meet for dinner one night with Doug Casey, a longtime contributing editor to International Living and a member of my Global Real Estate Investor advisory board. Doug owns 1,200 acres about 40 minutes south of Auckland. He's sold on this country.

He's also an experienced and successful real estate investor, with a knack for picking markets destined for boom. He gave me a tip:

"Queenstown," he said. "It's the Aspen of the Southern Hemisphere."

Lief Simon
For International Living