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 Originally Posted by Vtrader
Meanwhile, 'those that know best' are encouraging NZers to save and invest in wealth creation.
Little wonder the kiwi property love affair is what it is.
V.
Property love affair is a global phenomenon - witness the carnage in Ireland, Spain and the US. Witness the obsession with property in Asia.
Difference is that they are more balanced in their investments and not as dumb as your average kiwi investor who thinks property can only go one way. Blue Chip and coastal properties are two prime examples of how dumb kiwis are.
Coastal property in NZ is now stuffed for the next 10 years.
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An idea of the disaster which is coastal properties in NZ :
http://www.nzherald.co.nz/property/n...ectid=10691974
Almost as bad as the Irish real estate market where property prices have collpased between 33% to 75% since 2007.
Or the Spanish coastal properties which has dropped by over 55%.
Love affair with properties, anyone?
She is one ugly asset class in certain segments but the average kiwi is so dumb and starry eyed, they get taken for one big gigantic ride.
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Coastal property in NZ is now stuffed for the next 10 years.
If you follow the global warming mantra, coastal property is stuffed permanently - it'll be seabed.........
Gee, we could open up a huge debate here though Balance - a lot of the cause of boom/bust can be squarely laid at the feet of loose lending policies by lending institutions, and loose monetary conditions being left in place for far too long by authorities (under Greenspan for example), and finally, our broking/advisory fraternity can take some of the blame for putting investors into totally inappropriate asset classes for individual circumstances, and poor investments per se, simply for the sake of commissions and ongoing trails.....
I agree the NZX is a disgrace and should be put out of its misery. Yet another NZ 'industry' in terminal decline
Last edited by Xerof; 18-01-2011 at 09:30 AM.
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Originally Posted by Xerof
If you follow the global warming mantra, coastal property is stuffed permanently - it'll be seabed.........
Look over at Australia - a sign of things to come. There are already cheap beachfront properties in Byron Bay, Noosa and Sanctuary Cove for sale as insurance will not cover them.
Meanwhile, kiwis still look adoringly at their overpriced and unwanted coastal properties and wonder what happened to the queues of buyers who were there 4 years ago.
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Originally Posted by Balance
Love affair with properties, anyone?
She is one ugly asset class in certain segments but the average kiwi is so dumb and starry eyed, they get taken for one big gigantic ride.
As a fan of property I was wondering if this ought to get a response. It does and its one of agreement.
One of the properties I have on my "watchlist" is the Twizel Airport Subdivision. You are probably wondering where Twizel is and may be even more surprised it has an airport.
But thanks to the foresight of the city elders and the generosity of the rate payers of the Mackenzie District you to can fly your personal light aircraft to the heart of the majestic Mackenzie country. Taxiing on the runway is a breeze as it is designed to avoid collision with other congested airport traffic and you can park your plane in your own two story hanger and retire in your personalized 150sqm aviator paradise. You're then only a three minute drive to the bustling heart of Twizel. While in town stop off for a satisfyingly cup of Nescafe, enjoy a Shrimp Cocktail before tucking into your Snitzel at the Twizel Tavern before a round of golf at the 9 hole Ben Ohau Links (heads up - sheep only graze on days with an "s" in it"). If you fancy a quiet night at home you can always get Top Gun movie out from the local hardware store (check out the "Latest Releases" stand!) or if you are a bit of a Shane Jones I have it on good authority Boys in the Sand is available behind the curtain.
Heres me thinking the inbreeding around Waimate had bred out any useful intelligence from the local population it seems a few slope foreheaded individuals had the intellectual capacity to cob a ride on the back of a harvester and ended up in a position of power in Twizel and created this brilliant scheme.
Either that, or Alan Hubbards South Canterbury Finance has helped fund a few farmers into an equally successful political career. Either way the Airport Subdivision is an idea dreamt up by numbskull's who can take some comfort from the fact that a few oxygen deprived aviators have seen fit to stump up a bit of cash for their piece of high country paradise. Its no wonder Martin Jetpack has expectations of a successful IPO.
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This is the dumb part about NZ investors and commentators - it's always 'wild west ' stock market and 'no wonder love affair with property' as if both statements are correct.
Imagine how investors and commentators would react if a big segment of the NZ stock market was to collapse, wiping billions off the face of the earth and liquidity dried up completely? And yet, that's exactly what has happened to the coastal property market - likewise the lakes and river markets. Howls of protest and derogatory comments made?
Not letting the NZX off the hook though. It is a disgrace - a fee gouging monopoly which has failed by almost all measures of performance - size, growth, liquidity, dynamism, education etc.
NZ will pay a very heavy price for the way that the NZX has been allowed to be run down even as its executives, especially CEO, are paid astronomical amounts based upon profit.
Last edited by Balance; 18-01-2011 at 08:46 PM.
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And now, even dairy farmers are finding cold harsh reality that farm prices must ultimately reflect adequate reurns, focus on productive gains rather than capital gains :
http://www.nzherald.co.nz/business/n...ectid=10700523
Love affair with property? More like the kiss of leverage combined with dumb thinking by kiwis.
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Yet more fall-out from the love affair so exuberantly promoted and discussed by certain quarters and individuals :
http://www.stuff.co.nz/business/mone...-out-of-pocket
She's an ugly one, the Lakes district property segment. But starry eyed lovers see her as gorgeous beyond reproach.
Just mention the word "property' and the kiwi love-struck blinded suitors come with money in their hands to pour into the ventures.
Last edited by Balance; 21-01-2011 at 08:34 AM.
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Want a section at half-price in Queenstown?
She's a lovely looking one, this one : http://www.trademe.co.nz/Trade-me-pr...-325703288.htm
Only love-struck kiwis need apply.
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