NZ 1st homebuyers are ScReWeD...

[SBQ]

Here is a "news" article to provide hope to first home buyers.

https://www.nzherald.co.nz/business/...C4NZVVJ35KVJU/

All you have to do is save up $6,000 and have a rich Dad. What is all this angst about.

Sounds more like a story of a property investor trying to allocate some income to his kids to lower his tax bill.

One interesting bit in the article is the last couple of paragraphs. Jonny the builder doesn't even know who f**ked him over.

Every leader of every major party and the older generation that voted them in and especially the good folks at the RBNZ.

Melbourne still a lot less than Auckland and the reason is due to better policies. Australia has CGT, which directs investments into more productive areas like their share market. This is nothing new as others like Canada and the US use taxation to take away the heat from investing in 1 specific asset. NZ is clueless about demand controls so the come up with silly excuses like "not enough supply...". It's a lot more to that than just a supply problem. Also Australia has land tax. The smart investors don't buy houses in Australia, they do it in a business or on the share markets. But in NZ, we have tax policies that go the opposite way. We reward the rich people that own houses with no CGT, no supplementary land tax, no sur-charge on rates when held in a trust or in a company or by persons owning more than 1 house. We punish the productive part of society, the middle class, by giving them a Kiwi Saver which it's annual gains are taxed.

But seriously, from an aggregate point of view in society. How does a nation benefit from having excessive rising house prices? The only winners i'm seeing in NZ is the banks, for which most are foreign owned (as the profits are sent abroad to pay the share holders). It splits society between "the haves" and "the have nots". Guys like him selling is property investment book have the $ and their children would most likely end up in private schooling, for which their children will not understand or see the divide between the very wealthy and the commoners. I see this happening in NZ everyday volunteering in a public school. Little things like tissue paper boxes are requested as the school has no budget. Private schools don't have this problem. So as society carries on, what is left is a social divide which can almost be rooted between those that have houses and those that don't.

[ynot]

Melbourne still a lot less than Auckland and the reason is due to better policies. Australia has CGT, which directs investments into more productive areas like their share market. This is nothing new as others like Canada and the US use taxation to take away the heat from investing in 1 specific asset. NZ is clueless about demand controls so the come up with silly excuses like "not enough supply...". It's a lot more to that than just a supply problem. Also Australia has land tax. The smart investors don't buy houses in Australia, they do it in a business or on the share markets. But in NZ, we have tax policies that go the opposite way. We reward the rich people that own houses with no CGT, no supplementary land tax, no sur-charge on rates when held in a trust or in a company or by persons owning more than 1 house. We punish the productive part of society, the middle class, by giving them a Kiwi Saver which it's annual gains are taxed.

But seriously, from an aggregate point of view in society. How does a nation benefit from having excessive rising house prices? The only winners i'm seeing in NZ is the banks, for which most are foreign owned (as the profits are sent abroad to pay the share holders). It splits society between "the haves" and "the have nots". Guys like him selling is property investment book have the $ and their children would most likely end up in private schooling, for which their children will not understand or see the divide between the very wealthy and the commoners. I see this happening in NZ everyday volunteering in a public school. Little things like tissue paper boxes are requested as the school has no budget. Private schools don't have this problem. So as society carries on, what is left is a social divide which can almost be rooted between those that have houses and those that don't.

Sad but true. Consecutive government's have let NZ citizens down terribly.
Where was the foresight? Unbelievable !
I would have thought a competent Labour government would have addressed some of these issues but this lot have absolutely NO IDEA.

[TeslaGod]

How is MuskRat getting on with his 'transitory inflation'? US inflation is running at 7% and the oil price is on the move - upwards btw. The cost of global shipping continues to go through the roof while commodity prices go nuts. US equity markets have started 2022 down, down, down while Powell, Biden, and Yellen have all been talking about fighting inflation; this means tapering & interest rate rises.

It's all very interesting for people like MuskRat who was telling us that inflation was just 'transitory'.

The point is inflation doesn't affect me just poor people like you.

P.S inflation will reverse by Q4.

[ynot]

Recently came across this.

Credit Contracts and Consumer Finance Act (CCCFA).

Govt recently brought this in.
Apparently it's wide sweeping and effects any borrower. not just first home buyers.
It explains why a couple of individuals I know who usually have no bother raising bank mortgage have hit a brick wall when wanting to raise funds against their property.
Could it be one way govt is attempting to stop increasing property prices ?

[stoploss]

Recently came across this.

Credit Contracts and Consumer Finance Act (CCCFA).

Govt recently brought this in.
Apparently it's wide sweeping and effects any borrower. not just first home buyers.
It explains why a couple of individuals I know who usually have no bother raising bank mortgage have hit a brick wall when wanting to raise funds against their property.
Could it be one way govt is attempting to stop increasing property prices ?

It has had that effect but it's another "unintended consequence " from this Govt . they wanted to crackdown on payday lenders, food and clothing trucks etc. They were warned that if they implemented it as they suggested it would hurt good borrowers,first home buyers etc . They didn't listen.

[Aaron]

Hope for First home buyers?

https://www.nzherald.co.nz/business/...NN3S2YV2BPA6A/

Despite ex deputy reserve bank governor Geoff Bascand and our own Fungus Pudding declaring house prices are just a supply issue, it would appear demand and more importantly monetary policy settings also play a part.

It is a testament to the decency and civility of the young people of today that globally no reserve bank governor has been dragged into the street and hung drawn and quartered, while a chance at social mobility has been denied them due to central bank policies.

Not only will the next generation have to pay off huge loans, they will have their student loan deductions to consider (unlike previous generations), kiwisaver deductions (saving for retirement something the previous generation was not required to do) and I expect a rise in tax rates as national superannuation in its current form becomes a huge weight on the govt budget.

The younger generation have been very good about things perhaps the older generation could stop shi**ing on them. Let house prices fall (or maybe allow a capital gains tax if you want to keep all the wealth at least then you are contributing to society not just taking), make national superannuation like any other benefit, available only to those who need it. Scrap inflation targeting or at least reduce it to 0-2%.

P.S. this post does not recognise the great things that the older generation has done for NZ and for the following generations. Voted the least corrupt country in the world once again and also one of the wealthiest. My attacks are out of proportion to the issues that concern me. Much like the news media and social media I try sensationalism to get a bite but was overcome with guilt immediately after posting.

[fungus pudding]

Hope for First home buyers?

https://www.nzherald.co.nz/business/...NN3S2YV2BPA6A/

Despite ex deputy reserve bank governor Geoff Bascand and our own Fungus Pudding declaring house prices are just a supply issue, it would appear demand and more importantly monetary policy settings also play a part.

Fungus is a man of few words, so when he speaks of a supply problem, he has taken for granted that the average reader of s.t acknowledges he is referring to a supply shortage (i.e. not meeting demand) or an over-supply; a situation where prices are weak. Demand is a necessary factor if you are going to describe supply as an 'issue'. i.e. It can never be 'just' the supply.

[Logen Ninefingers]

Hope for First home buyers?

https://www.nzherald.co.nz/business/...NN3S2YV2BPA6A/

Despite ex deputy reserve bank governor Geoff Bascand and our own Fungus Pudding declaring house prices are just a supply issue, it would appear demand and more importantly monetary policy settings also play a part.

It is a testament to the decency and civility of the young people of today that globally no reserve bank governor has been dragged into the street and hung drawn and quartered, while a chance at social mobility has been denied them due to central bank policies.

Not only will the next generation have to pay off huge loans, they will have their student loan deductions to consider (unlike previous generations), kiwisaver deductions (saving for retirement something the previous generation was not required to do) and I expect a rise in tax rates as national superannuation in its current form becomes a huge weight on the govt budget.

The younger generation have been very good about things perhaps the older generation could stop shi**ing on them. Let house prices fall (or maybe allow a capital gains tax if you want to keep all the wealth at least then you are contributing to society not just taking), make national superannuation like any other benefit, available only to those who need it. Scrap inflation targeting or at least reduce it to 0-2%.

P.S. this post does not recognise the great things that the older generation has done for NZ and for the following generations. Voted the least corrupt country in the world once again and also one of the wealthiest. My attacks are out of proportion to the issues that concern me. Much like the news media and social media I try sensationalism to get a bite but was overcome with guilt immediately after posting.

According to the older generation who have reaped astronomical gains solely due to central bank policies since the GFC, all young people have to do is not spend so much on coffees and smashed avocado on toast and they will easily be able to buy a house.

The arrogance of the older generation in this regard is unbelievable. Yes, they did work hard. No, this does not mean that they should have been entitled by right to enormous windfall gains which have come about due to a bizarre historical event: the action of central bankers to deliberately inflate asset bubbles as a response to a global financial crisis. Then as a response to a pandemic, they have defended the bubbles they created with more of the extraordinary stimulus and interest rate suppression.

The end result of what has happened in New Zealand is that the egalitarianism that we once prided ourselves on has probably been swept away. A class divide will become even more stark.

We have major problems ahead of us. Inflation has taken hold. Our addiction to cheap money and constant borrowing will be something that it will be difficult to go cold turkey from. Already we hear the outcry from the mortgage brokers and property industry at the first signs of the coming credit crunch. Inflation and higher interest rates coupled with the massive debt burden are going to put real strain on our society. The adage is that after every credit fuelled boom there is a bust. The good times are over, the party is ending. The fantasies about a doubling of house prices over the next ten years will be proven to be a fools daydream. I guess the winners will be those who have cemented their gains, but at what price? What kind of country will they be living in 5 years from now?

[ynot]

According to the older generation who have reaped astronomical gains solely due to central bank policies since the GFC, all young people have to do is not spend so much on coffees and smashed avocado on toast and they will easily be able to buy a house.

The arrogance of the older generation in this regard is unbelievable. Yes, they did work hard. No, this does not mean that they should have been entitled by right to enormous windfall gains which have come about due to a bizarre historical event: the action of central bankers to deliberately inflate asset bubbles as a response to a global financial crisis. Then as a response to a pandemic, they have defended the bubbles they created with more of the extraordinary stimulus and interest rate suppression.

The end result of what has happened in New Zealand is that the egalitarianism that we once prided ourselves on has probably been swept away. A class divide will become even more stark.

We have major problems ahead of us. Inflation has taken hold. Our addiction to cheap money and constant borrowing will be something that it will be difficult to go cold turkey from. Already we hear the outcry from the mortgage brokers and property industry at the first signs of the coming credit crunch. Inflation and higher interest rates coupled with the massive debt burden are going to put real strain on our society. The adage is that after every credit fuelled boom there is a bust. The good times are over, the party is ending. The fantasies about a doubling of house prices over the next ten years will be proven to be a fools daydream. I guess the winners will be those who have cemented their gains, but at what price? What kind of country will they be living in 5 years from now?

NZ housing situation is so screwed its beyond repair.
Only the potential crash that I suspect Labour is trying to engineer will bring prices back to affordable levels.

[Aaron]

There is an unbelievable amount of rubbish talked about housing. An undersupply is hard on purchasers. An over-supply is hard on vendors. There is nothing else to know.

Weasel words from our venerable property investor.

Immigration played no part? Outrageous monetary policy has played no part?

Targeted inflation has played no part?

Just got to build enough houses according to FP.