sharetrader
Page 6 of 6 FirstFirst ... 23456
Results 101 to 108 of 108
  1. #101
    Permanent Newbie
    Join Date
    Mar 2010
    Posts
    1,270

    Default

    Quote Originally Posted by alokdhir View Post
    When public chat hosts starts thinking they know the best way forward then God bless our world ...lol

    Interest rates are not and will not be decided on the basis of house prices alone ...These rates actually effect real economy activity in more ways then not ...rates determine how small and large businesses are profitable or not ...they determine levels of NZD which helps or hinders exporters working for the economy and many more important sectors .

    The only reason Govt has chosen to try tax side roadblocks for property prices as all other sectors are struggling in most difficult covid induced environment ...they had no choice but to target only property prices as no other sector can take anymore burden of higher rates

    NZ economy will collapse if Mike 's suggestions are put to place and RBNZ starts raising rates for controlling property prices ...
    I don't think he was suggesting raising interest rates, especially as he was buying more property.

    He appreciates why house prices are high and sounds like he is making the most of cheap money. Basically he is pointing out the FACT that house prices are high due to low interest rates and easy access to credit.

    As FP says possibly the worst time to buy a house except as time goes on and debt increases there will be no foreseeable time when interest rates will rise again. In fact inflation and low interest rates might prove now to be a good time to buy.

    No sane person with capital to invest in a company or in a first home buyer would accept the current returns being offered. Creditism is the name of the game. How it plays out is anyones guess, talk show host or economist anyone who suggests with 100% confidence what the future will bring is full of s*it.
    Last edited by Aaron; 08-04-2021 at 11:10 AM.

  2. #102
    Permanent Newbie
    Join Date
    Mar 2010
    Posts
    1,270

    Default

    Quote Originally Posted by fungus pudding View Post
    The same could be said for many economists.
    What is undoubtedly true is the old Fungus oft-repeated adadge ........................'Interest rates and assett prices are the opposite ends of a see-saw.' That is why the best time to buy real estate is when interest rates are sky-high, and the worst time is when they are very low.
    So FP when the baby boomers tell younger generations how hard they had it with high interest rates they are talking s*it as it would have been the best time to buy property???

  3. #103
    Guru
    Join Date
    Apr 2008
    Location
    Sth Island. New Zealand.
    Posts
    4,924

    Default

    Quote Originally Posted by SBQ View Post
    In that 40min speech by Jacinda when she made the announcement some weeks ago, her gov't WAS CONSULTED by these very same ECONOMISTS that the NZ housing market was about to see a slight correct or drop. I understand exactly what she was saying that during that time, their gov't was not in the position to place any new further tax issues.
    I didn't name the economists. What makes you think they're the same ones? They do come in several types/styles/forms with differing opinions or philosophies.

  4. #104
    Guru
    Join Date
    Apr 2008
    Location
    Sth Island. New Zealand.
    Posts
    4,924

    Default

    Quote Originally Posted by Aaron View Post
    So FP when the baby boomers tell younger generations how hard they had it with high interest rates they are talking s*it as it would have been the best time to buy property???
    Yes of course. Hard at the time but look how well they've done. (The first rental property I bought, circa 1970, cost me $3100) High interest rates will mean a lower capital price or debt, and when the pendulum swings - the owner now has low outgoings, with a relatively small capital debt on an assett that now has a higher nominal value. Conversley a purchaser who enters the market when interest rates are low will be paying a higher price, and when the pendulum inevitably swings again the borrower will be paying a higher interest on an assett that has fallen - or at best - stopped rising.

  5. #105
    Senior Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    503

    Default

    Quote Originally Posted by Aaron View Post
    No sane person with capital to invest in a company or in a first home buyer would accept the current returns being offered. Creditism is the name of the game. How it plays out is anyones guess, talk show host or economist anyone who suggests with 100% confidence what the future will bring is full of s*it.
    Why should residential homes be viewed as an investment for return? The 1st home owner should not look at it that way. But it still doesn't fix the problem. 10 year time frame to wait where CG are tax free? Investors in NZ are not looking at annual returns - it's the cumulative capital gains that matters.

    By the way the CPI factors rental costs in their inflation figures. If rent prices go sky high (which I highly doubt), this should be reflected as inflation. But long gone are the days double digit central bank inflation. There is no foreseeable reason why rates will go that high, not when places like in the EU you have negative rates.

    Cheap $ also depends on the amount borrowed. Just because the interest rates are low does not mean 'cheap money'. It's the chicken or the egg example? Don't blame the central banks for adjusting rates lower... blame the behaviour of the greedy 1% & landlords that can leverage to buying multiple residential properties. Canada has done this very at curbing that kind of behaviour out of the housing market.

    @fungus_pudding: I didn't name the economists. What makes you think they're the same ones? They do come in several types/styles/forms with differing opinions or philosophies.
    None of them are any good. As Warren Buffet famously said if these 'economists' knew anything, then they themselves would be rich.. and I mean REAL rich. Yet they're still stuck teaching at uni.

    I also don't buy the low or high interest rate argument when to buy a house. They should not be viewed as an investment. But 40+ years of NZ's neglect on the housing issue has let the open free market turn houses here into a profit making commodity.

  6. #106
    Advanced Member
    Join Date
    Feb 2011
    Location
    Wellington
    Posts
    2,097

    Default

    Quote Originally Posted by SBQ View Post
    Why should residential homes be viewed as an investment for return? The 1st home owner should not look at it that way. But it still doesn't fix the problem. 10 year time frame to wait where CG are tax free? Investors in NZ are not looking at annual returns - it's the cumulative capital gains that matters.

    By the way the CPI factors rental costs in their inflation figures. If rent prices go sky high (which I highly doubt), this should be reflected as inflation. But long gone are the days double digit central bank inflation. There is no foreseeable reason why rates will go that high, not when places like in the EU you have negative rates.

    Cheap $ also depends on the amount borrowed. Just because the interest rates are low does not mean 'cheap money'. It's the chicken or the egg example? Don't blame the central banks for adjusting rates lower... blame the behaviour of the greedy 1% & landlords that can leverage to buying multiple residential properties. Canada has done this very at curbing that kind of behaviour out of the housing market.



    None of them are any good. As Warren Buffet famously said if these 'economists' knew anything, then they themselves would be rich.. and I mean REAL rich. Yet they're still stuck teaching at uni.

    I also don't buy the low or high interest rate argument when to buy a house. They should not be viewed as an investment. But 40+ years of NZ's neglect on the housing issue has let the open free market turn houses here into a profit making commodity.
    Hi SBQ, rental prices are in the CPI however the weighting is imo not right . A lot of families spend 50 % of their take home weekly pay on the rent. The weighting should be higher ....

  7. #107
    Senior Member
    Join Date
    Nov 2018
    Location
    Christchurch
    Posts
    503

    Default

    Quote Originally Posted by stoploss View Post
    Hi SBQ, rental prices are in the CPI however the weighting is imo not right . A lot of families spend 50 % of their take home weekly pay on the rent. The weighting should be higher ....
    I fully agree!!! but somehow the people in 'that camp' who own the houses (multiple houses to make a profit), express every 'other' excuse on why houses costs so much in NZ. You know, blame the banks, blame the central banks with low interest rates, blame the supply issue, blame every other reason except.... They themselves are part of the cause for making prices go so high in the first place. Remember since 1991 (if I recall correctly) NZ home ownership has been on the decline. Why? Because that decline has been taken over by the profit element of the wealthy buying more and more houses. Listen to the first 3 minutes of Ms Ardern's 40 min speech. Some real shocking stats on how many houses were sold to those that already owned 4 or more houses.

    Can we really blame this kind of behaviour? You know, their children and next generation after will never have to worry about buying a house so the playing field is like, a "1st come 1st serve or better get it before there's no way you'll afford to own one type of deal".

    The CPI has been unrealistic since the start. You can't say CPI of 2% inflation is total inflation each year when houses have doubled in 5 years? The gov'ts don't care and the economists don't care. What I see is the common person getting screwed in every way and what is left of society when the next generation can't afford to buy their 1st home? It's the same kind of thing I see with NZ education; you have the rich or the families that scrape just enough $ to send their children to private school because they think public education is crap. I mean I can understand the difference if say maybe 1% would end up at private schooling but not when there's like 30% of all schools in the major cities in NZ are private schooling. Something is not right here with this segregation shift in society.

  8. #108
    Senior Member
    Join Date
    Apr 2020
    Location
    hamilton, landskrona sweden
    Posts
    1,379

    Default

    few monthss of this should sjow the way forward.

    https://www.interest.co.nz/property/...ber-properties

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •