Quote Originally Posted by duncan macgregor View Post
The thing to remember when you say 10000 workers lost their jobs is that they either get out the trade or go overseas. A very large proportion of that number is lost to the industry never to return. when the market turns which it always does, this will inflate house prices at a much greater rate than ever before.
With all the lack of knowledge in the industry by the rule makers inflating new building costs added to this home ownership will be confined to the rich. I can see a major crisis looming with unaffordable rents and house prises resulting in a great exodus overseas by our young people who will be replaced by rich migrants. Macdunk
I would disagree.......

I'm already seeing signs(with my eyes from my perspective so it doesn't mean I'm right) of softening rents in my area.....largely due to homes going unsold and now available to rent.

Available rentals property numbers are growing rapidly in my suburb.....in recent years there have been practically zero as most were rented before being listed.

Same goes for commercial.....in Christchurch along high profile areas like Moorehouse Avenue it was extremely rare to see a For Sale or For Lease sign until deep into 2007.....now it's a completely different story.

In my opinion, I think you are off the mark(at least in regards to Christchurch, but I think across the nation on average) and that your take is overly optimistic.

I think there will be a LOT of money made via incredibly shrewd buying in the next few years, but the profits will not be able to be realized for quite a few years....and I think the building industry is going to be further culled from the indications I'm seeing.

With few exceptions, I believe new construction in the current environment would be madness.