MET - Metlifecare - one for the fundies?

[Balance]

Auckland house prices to boom

Auckland's next house price boom could be on the verge of taking off, leading to warnings to first-home buyers to buy now or risk being locked out of the market forever.



https://www.nzherald.co.nz/business/...ectid=12280515

It’s a Westpac economist report so take it with a grain of salt but whatever it’s the sort of news MET Shareholders love

Irresponsible recommendation imo.

So says the bank economists who are anxious about their jobs due to the disproportionate exposure their banks have lent to the housing sector.

Wonder why the banks are putting the squeeze then on developers and land bankers (who have borrowed money from them) to sell down developments and land to pay down debts.

Surely the market taking off will take care of the problem?

Interesting, isn't it?

[Bjauck]

Irresponsible recommendation imo.

So says the bank economists who are anxious about their jobs due to the disproportionate exposure their banks have lent to the housing sector.

Wonder why the banks are putting the squeeze then on developers and land bankers (who have borrowed money from them) to sell down developments and land to pay down debts.

Surely the market taking off will take care of the problem?

Interesting, isn't it?

Capital Gains Tax risk has gone or been reduced considerably.
Interest rates are lower and likely to stay low.
kiwisaver is taxed.
NZ Sharemarket has been hollowed out - many big companies have relocated overseas.

So Tax free capital gains from residential housing is still the main avenue for household savings?

[Balance]

Capital Gains Tax risk has gone or been reduced considerably.
Interest rates are lower and likely to stay low.
kiwisaver is taxed.
NZ Sharemarket has been hollowed out - many big companies have relocated overseas.

So Tax free capital gains from investor residential housing is still the main avenue for household savings?

No overseas money coming into real estate due to the overseas buyers' ban - acknowledged by all real estate participants as the biggest driver of ever rising property prices in NZ until the ban kicked in.

Example of land/sections for Africa begging for buyers :

https://www.auranga.co.nz/masterplan/

https://www.trademe.co.nz/Browse/Cat...ch_suggested=0

Where once there were green fields kissed by the sun, once there were valleys where rivers used to run - now there are sections!

Anyway, as a property owner, I kinda hope the bank economists are right but I certainly will not be putting more money into properties!

[Bjauck]

No overseas money coming into real estate due to the ban - acknowledged by all real estate participants as the biggest driver of ever rising property prices in NZ.

Anyway, as a property owner, I kinda hope the bank economists are right but I certainly will not be putting more money into properties!

And they had previously said overseas buyers had a small influence!

Nor would I.

However NZers have perhaps limited scope for alternatives to investing in real estate. Kiwisaver is fully taxed so perhaps a comparative disincentive to build up a good balance. Sharemarket is small (with an historically bad reputation from the 1980's amongst baby boomers.) Real estate is capital gains orientated and with no CGT is still the place to build up the Household nest egg.

[Balance]

And they had previously said overseas buyers had a small influence!

Nor would I.

However NZers have perhaps limited scope for alternatives to investing in real estate. Kiwisaver is fully taxed so perhaps a comparative disincentive to build up a good balance. Sharemarket is small (with an historically bad reputation from the 1980's amongst baby boomers.) Real estate is capital gains orientated and with no CGT is still the place to build up the Household nest egg.

I harbour a simplistic view that CGT will come in - matter of time.

Timing will be when consideration of revamping of National super has to be undertaken - either age, amount or means testing.

[Bjauck]

I harbour a simplistic view that CGT will come in - matter of time.

Timing will be when consideration of revamping of National super has to be undertaken - either age, amount or means testing.

NZ real estate features so highly amongst the assets held by NZers, that it will remain for many years a kamikaze mission for any political party that seeks to levy a general CGT if they want to attain the treasury benches.

[CatO'Tonic]

Some good movement today on solid volumes. looks like it will get through the $5

[winner69]

Some good movement today on solid volumes. looks like it will get through the $5

Yep, a continuation of the recent strength in the share price

Will be over 5 bucks soon and as it closes that huge gap to NAV it’ll be 6 bucks some time after Xmas......and then maybe 7 bucks before we realise it.

[penn]

A very nice ride when a days capital gain is as big as the annual divvy.

[psychic]

Sage advice there Mondo. But I'm thinking the thing is way oversold, at a ridiculous discount to NAV (leaky buildings priced in after all this time surely? ), resales exceeding valuations, high occupancy rates, beaut forward build program and at a terrific p/e. What could go wrong...

Called it. Me. Lol. Hahaha.. Me. Ffs. Nice