NZ 1st homebuyers are ScReWeD...

[JBmurc]

I see from the NZ Herald that NZ residential property value has hit One trillion dollars, whilst the NZ share market capitalisation is at $116 billion. I don't know how this compares to the countries with which we like to compare ourselves (Aus, UK Canada USA) but I suspect their sharemarkets are valued at a higher proportion of their residential housing. NZ residential housing is the go-to investment and in my opinion, the NZ government could do more to encourage financial and business share and equity investments. With the current trends, NZers will end up being a land of mostly tenants being employed by foreign owned businesses and living in houses owned by wealthy local and foreign landowners.

See http://www.nzherald.co.nz/business/n...ectid=11781028

Yes outside those employed in the property sector our love affair with local property looks problematic ....

-Huge debt to household income (the debt which is mostly held by foreign nationals , NZ very poor savers)

-low investment in new NZ businesses..... IPO's etc..

-Huge earthquake risks to our million dollar pads .....Again Insurance costs to foreign balance sheets (ongoing increase premiums)


Really when you look at NZ are so called Rock star economy is heavily biassed on other countries though TOURISM # 1
and Debt fueled property market ... we have is a low income economy + High living costs .. add in are aging population
+ muti year property bubble ....

thinking we will have some much tougher years ahead as a nation

fundamentally on the wrong road........ incomes Vs Debt