“Seeing the world anew”- the seeing of new patterns- is one of our most important survival skills, and is something that we all need to include in our thinking.
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“Seeing the world anew”- the seeing of new patterns- is one of our most important survival skills, and is something that we all need to include in our thinking.
When it comes to house price trends there really isn’t that much difference between the gold standard and the numbers real people use
Then again QV have another series.
Love your charts winner, just goes to show the quibbles over a few % here or there are nonsense. Look at the trend! Wow. No sign of reversing into the doldrums, and with RBNZ slashing OCR and banks debasing mortgage interest rates, ballyhoo, property continues to be the best investment in NZ. Or listed property companies of which there are a few special ones we like.
https://www.sharetrader.co.nz/attach...4&d=1557906661
Picture says a thousand words. QED.
I don't know when, but this is not good, house prices can't keep rising forever, something is going to happen. Is not a wish nor down ramping but just a huge concern.
Interesting documentary:
https://www.youtube.com/watch?v=HzSAmOQuyjU
I am an investor in three of the ORA providers. Barring a major correction I am happy with that as there business is not just about land price increases.
However, given NZ households’ major dependency on real estate investment and its reliance on untaxed (leveraged) capital gains to provide a large proportion of its return, I am concerned any further increase at this stage may mean a more dramatic correction.
Interesting to note that the countries with low home ownership rates like e.g. Germany (51.9% home ownership rate) and Switzerland (43.4% home ownership rate) are typically much wealthier than countries with high home ownership rates (like e.g. Romania with 96.4% home ownership rate or China with 90%): https://en.wikipedia.org/wiki/List_o...ownership_rate
And yes, Singapore (a wealthy country) is an exception to this rule - here the state is heavily subsidizing the first (and often the last) home to their citizens.
NZ is with a current homeownership rate of 63.2% somewhere in the middle between the wealthy countries and the poor countries, but maybe it is a good thing home ownership rates are dropping and we are getting more wealthy?
I agree that being wealthy should not depend on owning one’s own home. However in NZ it is currently the case that you are more able to borrow to invest in a house, and if you do, you can enjoy untaxed leveraged capital gains (whether owner occupied or not).
NZ (as a whole) may be getting wealthier. However does the increased wealth belong to a smaller percentage of the population? Are the increasing numbers who do not/ cannot own real estate getting wealthier?
As much of NZ household wealth depends on land. Owning an average unmortaged million dollar house today is equivalent to a $70,000 house 40 odd years ago. I guess you would be wealthier in you moved abroad to a country that has not had such inflationary land values.