Most of us have been calling it since Tuesday morning, Beagle ;-)
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Socialism works fine as part of a mixed economy. Markets work fine and produce socially useful results without regulation or intervention in some cases, and don't work fine without regulation and intervention in others. In these cases, the socially harmful effects of market failure always fall most heavily on the have nots.
Capitalism works fine to produce things, though the "hidden" costs (environmental degradation, education and training and health and welfare of the workforce are often socialised). Unregulated capitalism is lousy at distributing the fruits of that production (Google Picketty). Everyone is worse off as a result.
And since this is an OCA thread - I think OCA will be well placed to rocket away after the capital raise since I understand it will be EPS accretive and the 20% rise in property prices has not yet been reflected in OCA revaluations.
That statement is plain wrong. The Government is currently paying about $37M in accommodation supplements per week as well as who knows how much in "emergency housing". Rents will without a shadow of doubt to up significantly, starting 1 October. This silly Government will be paying most of that increase through accommodation supplements. Take with one hand to give with the other, but back to thee same people that you took it of in the first place. Can't get any more socialist than that :-)
Why don't rents go down when costs ( like 100 year lows for interest rates) go down.
Maybe costs are mostly irrelevant.
Well said. The Kiwi dollar has had a significant fall since their punitive new tax regime was announced. This will suck the wind out of the economic sails and we'll come "off the foils" for sure. They are completely clueless and have no idea the message they have just sent. They simply cannot be trusted.
Maybe some landlords have refrained from increasing rents due to the mortgage being easier to service, or maybe a good chunk of them are still paying 4% plus on terms locked in pre covid, or maybe the lower servicing costs have been directed towards investment in the healthy homes requirements. Fear not, they'll being going up a lot quicker for the next few years. One of the lovely side effects of this change is that while landlords might be 120 to 150 a week out of pocket because of it, they'll need to bump up the rent 150% of that figure just to break even, assuming a 33% marginal rate...marvellous.