You could have said the same thing about National through much of the Clark years and they bounced back unfortunately.
So saying the party is dead is preposterous. Get a decent leader and Key will be out on his ear.
Originally Posted by fungus pudding
But they're no good at that either. Winston first, on his own, provides more effective opposition than Labour. Can't govern, can't oppose - the party is dead.
Hopefully you find my posts helpful, but in no way should they be construed as advice. Make your own decision.
Not worried about 777 and I'm sure 777 isn't either. It would only matter to someone who was trying to make sense of it. That's probably only eZ anyway.
Nah, i'm not worried. It is so easy to bait these guys and a lot of fun reading their replies. It must be hell getting up in the morning and being so negative all day. You have to admire their dedication though.
That sort of policy helps no-one. Sounded good at the time, but think how much cheaper homes would have been without subsidies. Great example was the sweat equity scheme in the 80s. It was easy to get a package deal to a house that needed work. A similar age and style of house in immaculate condition was always cheaper.
Rubbish, what subsidy and how would they be cheaper?
Rubbish, what subsidy and how would they be cheaper?
westerly
The old state advances schemes subsidised buyers with no or low deposits, and low interest rates. That puts more competition in the buying market - prices rise. Similarly the sweat equity scheme gave suspensory loans and low interest with low deposit. Any subsidy always ends up in the vendors' pocket. Never the purchasers'. Look at similar nonsense in Australia when the govt. gave first home buyers $15000. It simply added 15k to the properties in that market bracket. If they gave every home buyer a million dollars - guess what would happen! Just as property prices have risen higher and higher as interest has fallen and will taper off as rates rise again. It's an infallible law that the cost of money and the price of property are the opposite ends of a see-saw.
The same economic law tells us why the time to buy is when interest rates are high. Sell when they are low.
Last edited by fungus pudding; 25-04-2016 at 08:59 PM.
The old state advances schemes subsidised buyers with no or low deposits, and low interest rates. That puts more competition in the buying market - prices rise. Similarly the sweat equity scheme gave suspensory loans and low interest with low deposit. Any subsidy always ends up in the vendors' pocket. Never the purchasers'. Look at similar nonsense in Australia when the govt. gave first home buyers $15000. It simply added 15k to the properties in that market bracket. If they gave every home buyer a million dollars - guess what would happen! Just as property prices have risen higher and higher as interest has fallen and will taper off as rates rise again. It's an infallible law that the cost of money and the price of property are the opposite ends of a see-saw.
The same economic law tells us why the time to buy is when interest rates are high. Sell when they are low.
You sound like Bob Jones, FP. Although I rather suspect that if any Aucklanders had sold their homes the instant interest rates dropped, they'd have missed out on some good capital gains that are still going. How did that happen, according to your brilliant theory? Well actually, net immigration is strongly correlated with house prices, particularly in Auckland. I don't think the slightly negative correlation of house prices with interest rates would be as strong, but you could try to prove me wrong.
Oops, sorry, I reacted to the bait, didn't I, 777. You know why we have to react to the bait? Because the BS that's flowing around us, put out by CT and National, then parroted by the likes of you and FP, doesn't stand up to any sensible perusal of the facts.
You sound like Bob Jones, FP. Although I rather suspect that if any Aucklanders had sold their homes the instant interest rates dropped, they'd have missed out on some good capital gains that are still going. How did that happen, according to your brilliant theory? Well actually, net immigration is strongly correlated with house prices, particularly in Auckland. I don't think the slightly negative correlation of house prices with interest rates would be as strong, but you could try to prove me wrong.
Why? Anything that alters supply or demand will affect price. That's a given, so of course immigration affects the market. I did not claim subsidies were the sole factor.
Why? Anything that alters supply or demand will affect price. That's a given, so of course immigration affects the market. I did not claim subsidies were the sole factor.
No, you said interest rates were a big factor too. Here are the charts, according to you there would have been a boom in house prices around the GFC, when interest rates suddenly fell. Correlation between interest rates and house prices in Auckland, close to zero. Correlation with net immigration, close to 1. Case closed.
No, you said interest rates were a big factor too. Here are the charts, according to you there would have been a boom in house prices around the GFC, when interest rates suddenly fell. Correlation between interest rates and house prices in Auckland, close to zero. Correlation with net immigration, close to 1. Case closed.
Only an idiot would expect an instant reaction in the middle of world wide financial turmoil. Only an idiot cannot see the effect interest rates have on housing. Case welded shut.
Only an idiot would expect an instant reaction in the middle of world wide financial turmoil. Only an idiot cannot see the effect interest rates have on housing. Case welded shut.
I don't think so. It's all about pressure, and it starts with new immigrants wanting a place to rent or buy. The govt controls immigration policy, they have set this up for a false economy because it suits them. You could argue Labour did the same thing early in their last term, I'm not sure of the history there. If the Reserve Bank controlled immigration, they'd have a handle on the housing bubble.
Originally Posted by fungus pudding
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