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
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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.
Spade is a Spade and only positive spades can dig here negative spades must only dig in others gardens a bit like doggies do
Thick skin and large dose of humour a must ............ no offense intended or taken BP as I enjoy your posts
Tony from BNZ gone bearish on property market
Must have lost the plot
http://tonyalexander.co.nz/wp-conten...ay-16-2019.pdf
Moosie on another forum reckons a second wave of selling likely -
Have noted RYM has taken a nose-dive the past few days and is looking petty sick chartwise. Can't be good for SUM as failure to rise back above $6.00 resistance and weak indicators says we're heading back down to test the $5.50 lows soon. Second wave of selling may begin in earnest if that support breaks...