Potential POSITIVE effects of corona virus

[kiora]

People helping people
How can you help?
Honey
https://www.stuff.co.nz/timaru-heral...+23+April+2020
Meat the need
https://meattheneed.org/

[fungus pudding]

Reserve bank are looking at dropping the 20% deposit for new home buyers,this will help the people who still have a job,and have not had to take a pay cut.

It will mean they will compete with a longer line of buyers, and of course push the prices up. If that's helping, I'm not sure how.

[steveb]

It will mean they will compete with a longer line of buyers, and of course push the prices up. If that's helping, I'm not sure how.

Come now do you not remember the first house you bought,that sense of satisfaction at actually owning your own home.Prices can go up but if you are on the property ladder so what.I paid $49K for my first home would it have mattered if it was $55K no it wouldn't as long as I could afford the mortgage.

[Southern_Belle]

The RBNZ LVR scheme is quite a bit more nuanced than that. In fact thats not really the gist of it at all.



The intention, if it goes ahead, is to take away some of the restrictions placed on banks lending. Yes, in theory it will increase demand, but the anticipated reduction in demand will far outweigh that. It will hopefully cushion the blow to the housing market but more importantly allowing and encouraging banks to lend in this climate is crucial.

Another 'concern' it will allow existing homeowners to 'borrow' increased amounts against their house.

[Timesurfer]

Another 'concern' it will allow existing homeowners to 'borrow' increased amounts against their house.

Which even with short memories people should be able to recall a recent event sparked from banks over-lending to people who couldn't afford it and the mountain of junk debt that came crashing down?

[dobby41]

Which even with short memories people should be able to recall a recent event sparked from banks over-lending to people who couldn't afford it and the mountain of junk debt that came crashing down?

The banks, in recent times, have been pretty tight in their lending.
I'm not sure that loosening the LVR will increase lending a lot.

[kiora]

Sign we are going inflate our way out of this.Using inflation to pay our way out
“if it jams, force it – if it breaks, it needed replacing anyway”,
https://thespinoff.co.nz/food/25-04-...+25+April+2020

[Blue Skies]

Sign we are going inflate our way out of this.Using inflation to pay our way out
“if it jams, force it – if it breaks, it needed replacing anyway”,
https://thespinoff.co.nz/food/25-04-...+25+April+2020

From what I read, the main problem is way too many food outlets for the size of our population. Supply & demand.
She says, NZ has over 100,000 food outlets. So lowering customers expectations & increasing the customers bill seems a strange way to go about fixing things.
Overseas visitors often comment how expensive food in cafes & restaurants here is already.

[fungus pudding]

From what I read, the main problem is way too many food outlets for the size of our population. Supply & demand.
She says, NZ has over 100,000 food outlets. So lowering customers expectations & increasing the customers bill seems a strange way to go about fixing things.
Overseas visitors often comment how expensive food in cafes & restaurants here is already.

Then they haven't been to Europe.

[dobby41]

Then they haven't been to Europe.

Europe is a big place but many of the bits I've been to are cheaper - you could afford to eat every meal out.