ADRIAN ORR our NEW RBNZ GOVERNOR

[Aaron]

It's not the house prices that have gone up your spending power has gone down.

1950/60/70 Father worked =House 1 income

1980/90/2000Father & Mother work= House 2 incomes

2020/30/40 Father & Mother work & Invest in shares/business 3+ incomes = home ownership.

Or is it easier to complain to mainstream media and politicians in the hope that your hurt feelings may help you into home ownership.

Not sure what your point is with that last line but with the loss of spending power are you suggesting we have more kids to help pay the mortgage. I think some countries value children as an economic resource when they live in a **** hole country. Or that people should stop whining and accept whatever is being provided. I agree that might be their only option as there are no political parties suggesting scrapping targeted inflation and the planned erosion of spending power.

Latest tinkering by a weak govt and weaker RBNZ.

https://www.msn.com/en-nz/money/news...?ocid=msedgntp

[winner69]

Agree with Michael here

@MHReddell
Ever more new distortions and financial repression under this govt and set of central bankers.

Nothing in here suggests banks are vulnerable, and the health of the financial system - not of indiv borrowers - is the statutory tests.

rbnz.govt.nz/news/2021/08/r…

https://twitter.com/mhreddell/status...052973593?s=21

[TeslaGod]

Not sure what your point is with that last line but with the loss of spending power are you suggesting we have more kids to help pay the mortgage. I think some countries value children as an economic resource when they live in a **** hole country. Or that people should stop whining and accept whatever is being provided. I agree that might be their only option as there are no political parties suggesting scrapping targeted inflation and the planned erosion of spending power.

Latest tinkering by a weak govt and weaker RBNZ.

https://www.msn.com/en-nz/money/news...?ocid=msedgntp

My point being is you need multiple sources of income preferably passive, to buy property in the future (or now) every one complaining about house prices doesn't get them any closer to home ownership.

Although I'm sure it makes them feel better, but like a dopamine hit from a like on Facebook..it's not real or any more closer to home ownership.

[TeslaGod]

Agree with Michael here

@MHReddell
Ever more new distortions and financial repression under this govt and set of central bankers.

Nothing in here suggests banks are vulnerable, and the health of the financial system - not of indiv borrowers - is the statutory tests.

rbnz.govt.nz/news/2021/08/r…

https://twitter.com/mhreddell/status...052973593?s=21

It's not this governments fault.
It's happening world wide, even a 3 hour plane flight across the ditch and they have a liberal capitalist government incharge.

Blaming governments, Banks don't help you to home ownership it just makes you believe you can't own your own home.

[Aaron]

My point being is you need multiple sources of income preferably passive, to buy property in the future (or now) every one complaining about house prices doesn't get them any closer to home ownership.

Although I'm sure it makes them feel better, but like a dopamine hit from a like on Facebook..it's not real or any more closer to home ownership.

You need to start saving for a house, agreed. But where do you invest to get your passive income in todays market at a return greater than the rise in house prices?

It is not the governments or central banks fault??? So you don't think lower interest rates and easy money affects house prices? Or that govt policy makes no difference to the housing market? Or that we could vote for a political party next election that proposes to end targeted inflation and work out a way to create a market place for interest rates free from central bank interference.(Although there are no parties proposing this, even the libertarian ACT party is OK with central planning for the financial system.

[TeslaGod]

You need to start saving for a house, agreed. But where do you invest to get your passive income in todays market at a return greater than the rise in house prices?

It is not the governments or central banks fault??? So you don't think lower interest rates and easy money affects house prices? Or that govt policy makes no difference to the housing market? Or that we could vote for a political party next election that proposes to end targeted inflation and work out a way to create a market place for interest rates free from central bank interference.(Although there are no parties proposing this, even the libertarian ACT party is OK with central planning for the financial system.

The RBNZ did what they had to do or we would have had an exchange rate equal to a developing nation.

You needed to use the lower interest rates to your advantage to grow your wealth, understand assets, markets, margin.

Yes I own multiple properties but my margin facility helped to grow my liquidity.

I'm an experienced property investor but he'll, I wouldn't go near this market,I buy houses on sale or well below market value.. when the market is flat, And nobody show's up to a open home!

As I did in equities and commodities last year.

If you think you can vote your way to wealth, the politicians have done there job and played you for a fool .

[SBQ]

It's not this governments fault.
It's happening world wide, even a 3 hour plane flight across the ditch and they have a liberal capitalist government incharge.

Blaming governments, Banks don't help you to home ownership it just makes you believe you can't own your own home.

No one is claiming houses among the OECD have not risen to epic levels.

When you look at the Olympics, going for gold is a major feat of recognition. In the realm of getting gold for having the highest, unaffordable, houses, NZ takes the top spot. So much that for many years the UN has criticized the NZ gov'ts lack of action to deal with the problem. Those who are in the game to profit the most from owning multiple houses (or having most of their investments in houses) will never believe it's a NZ problem and use the same excuse that other OECDs have the same problem. Well it's not the same. When you're top place, you have to wonder why? The UN rapporteur calls the housing problem in NZ from a lack of supply, lack of capital gains tax, and lack of diversity in investments away from houses. Would you believe in other countries, it's not this way.

Blackrock's stake in buying houses in America is nothing new. After all house prices on average only rose around 13% ; and people are crying over that rise. What is at least apparent is any capital gains and incomes from the managed fund's venture in houses will attract taxation, no different if an individual buys a house. Do we need to compare the difference between their 13% to our 30% ?

On the radio this morning Megan Woods is looking to index the 1st time home ownership grant to be more in line with house prices. The limit of $550K is far too low when you look at places like Wellington which are double that amount. I still believe the Canadian program for 1st time home buyers is best, but may be too radical for NZ (just like how Vancouver imposed a 'Vacancy Tax' on empty houses - this would be a radical idea to impose in the Auckland housing market).

[TeslaGod]

Tax is evil full stop.

I wish I could allocate were my taxes could go.

Back into the pockets of workers and investors.

The more tax you create the more you get back.

A Simple but effective strategy.

But let's build a cycle lane across the cook straight instead.

[Aaron]

If you think you can vote your way to wealth, the politicians have done there job and played you for a fool .

I didn't think I was voting my way to wealth. I thought I was arguing for a fair shake for the next generation. As a successful property investor you might appreciate 30 years of lower interest rates may have helped your capital grow by pushing up house prices at twice the rate of wage growth.

I probably don't understand FOREX but the RBNZ dropping interest rates and pumping money into housing appears not to have been necessary as far as house prices go but I thought these actions would weaken the NZ dollar and make our exchange rate more like a developing nation. I am pretty sure it wasn't intended to strengthen the $NZ.

[FTG]

Blackrock's stake in buying houses in America is nothing new. After all house prices on average only rose around 13% ; and people are crying over that rise. What is at least apparent is any capital gains and incomes from the managed fund's venture in houses will attract taxation, no different if an individual buys a house. Do we need to compare the difference between their 13% to our 30% ?

Here you go yet again SBQ; making up & manipulating numbers in the attempt to support your shallow thinking arguments.

The ACTUAL reported USA 12 month house price growth, to June 30th, is 23.4% (NZ 28.7%).

Yes, your Vancouver "Vacancy Tax" idea would be way to radical & destructive for NZ. Fascist measures like that don't address the actual cause of the problem. Likewise, lifting FHB grants further is simply just PPP (populist political policies). Tinkering & fidgeting, all to look good to the voting base rather than contributing to creating long-term solutions in a meaningful way.