sharetrader
Page 32 of 34 FirstFirst ... 2228293031323334 LastLast
Results 466 to 480 of 505
  1. #466
    Advanced Member
    Join Date
    Aug 2012
    Posts
    1,837

    Default

    Immigration gives the appearance of a good economy (desptite productivity stagnation) and booming house prices pleases the National Party support base. As for the mushrooming property debt, when the next move for interest rates is probably upwards...is that a problem for another day?

    I would have thought that the first sign of flattening property market should be relief and not result in trying to encourage even more housing debt. The fact that first home buyers find it difficult to enter the market is the result of years of inaction from the government. Yet, the Reserve Bank is being scape-goated?

  2. #467
    Member
    Join Date
    May 2015
    Posts
    175

    Default

    Quote Originally Posted by Bjauck View Post
    Immigration gives the appearance of a good economy (desptite productivity stagnation) and booming house prices pleases the National Party support base. As for the mushrooming property debt, when the next move for interest rates is probably upwards...is that a problem for another day?

    I would have thought that the first sign of flattening property market should be relief and not result in trying to encourage even more housing debt. The fact that first home buyers find it difficult to enter the market is the result of years of inaction from the government. Yet, the Reserve Bank is being scape-goated?
    None of this should be surprising.. National are looking after their rich-listing mates which means doing as much as possible to keep business ticking over and not addressing real social issues. Seems like the answer in 2008 was to open the doors to more Immigrants. But the unintended consequence was to pump up the housing market and place huge demand on infrastructure in our biggest city. Given any real option would mean hurting the wealthy, negative geared supporters with major investment in property. National turned to Nick Smith to deflect blame and look busy with no real results...

    Honestly National pend to care about middle and low income New Zealand but its all an act. And helping First Home Buyers into a 650K Loan with 10% deposite in a world primed to raise interest rates is a really really terrible idea.

    Hence the Reserve Bank of New Zealand Stepped in to to protect investors and First Home Buyers for over extending themselves and getting themselfs into real hardship in the coming years..

  3. #468
    Update Ready To Install
    Join Date
    Aug 2010
    Location
    Floating Anchor Shoals
    Posts
    8,061

    Default

    Guys you've described that better then I've been attempting to on the political threads, thank you. Feel free to put them there and if you don't get around it is it acceptable for me to? no prob if not cheers JT

  4. #469
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    6,655

    Default

    Hence the Reserve Bank of New Zealand Stepped in to to protect investors and First Home Buyers for over extending themselves and getting themselfs into real hardship in the coming years..
    Not quite. The RBNZ don't have any mandate to protect investors - first home buyers? maybe - but they do have a function in ensuring a sound financial system. That's their objective in applying lending restrictions.

  5. #470
    Advanced Member
    Join Date
    Feb 2011
    Location
    Wellington
    Posts
    1,658

    Default

    Quote Originally Posted by NeverQuestion View Post
    None of this should be surprising.. National are looking after their rich-listing mates which means doing as much as possible to keep business ticking over and not addressing real social issues. Seems like the answer in 2008 was to open the doors to more Immigrants. But the unintended consequence was to pump up the housing market and place huge demand on infrastructure in our biggest city. Given any real option would mean hurting the wealthy, negative geared supporters with major investment in property. National turned to Nick Smith to deflect blame and look busy with no real results...

    Honestly National pend to care about middle and low income New Zealand but its all an act. And helping First Home Buyers into a 650K Loan with 10% deposite in a world primed to raise interest rates is a really really terrible idea.

    Hence the Reserve Bank of New Zealand Stepped in to to protect investors and First Home Buyers for over extending themselves and getting themselfs into real hardship in the coming years..
    I think the RBNZ stepped in to protect the banks from the banks , to avoid a GFC like crisis/run on the banks here in the event of a property collapse .
    Maybe have a read of "The bank that broke the bank " a good story around Westpac after the 1987 sharemarket crash , some good KP stories in there as well when he took 10 % of the company and tried to clean it up , sack masses of staff .......

  6. #471
    Advanced Member
    Join Date
    Aug 2012
    Posts
    1,837

    Default

    Quote Originally Posted by macduffy View Post
    Not quite. The RBNZ don't have any mandate to protect investors - first home buyers? maybe - but they do have a function in ensuring a sound financial system. That's their objective in applying lending restrictions.
    I think it is beneficial to have the experts of an independent central Bank protecting the financial system.

    That's especially handy in an election year when the inexpert politicians and Parties would like to introduce (risky) policies in order to please and appeal to those neglected parts of the electorate that have been hurt by the current political and economic environment (first home buyers in this case.)

    I agree with Mr Morgan...The housing train wreck has been decades in the making and both Labour and National can take the credit for that😮
    https://www.nbr.co.nz/opinion/housin...ades-making-gm

  7. #472
    An Awesome Cool Cat winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    24,740

    Default

    Quote Originally Posted by Bjauck View Post
    I think it is beneficial to have the experts of an independent central Bank protecting the financial system.

    That's especially handy in an election year when the inexpert politicians and Parties would like to introduce (risky) policies in order to please and appeal to those neglected parts of the electorate that have been hurt by the current political and economic environment (first home buyers in this case.)

    I agree with Mr Morgan...The housing train wreck has been decades in the making and both Labour and National can take the credit for that😮
    https://www.nbr.co.nz/opinion/housin...ades-making-gm
    For decades we have had negtive net migration and we have had posituve net migration (sometimes quite high) ....we have had building booms and building busts .....we have had high interest rates and we have had low interest rates ......


    .......but we always seem to have a housing crisis and homeless people

    Sometimes you wonder that is how the world actually works ....and housing crisis is just a term used by academics / commentators because in theory that's what we should be having.
    “In a roaring bull market, knowledge is superfluous and experience is a handicap.”

    –Benjamin Graham”

  8. #473
    Advanced Member
    Join Date
    Aug 2012
    Posts
    1,837

    Default

    Quote Originally Posted by winner69 View Post
    For decades we have had negtive net migration and we have had posituve net migration (sometimes quite high) ....we have had building booms and building busts .....we have had high interest rates and we have had low interest rates ......


    .......but we always seem to have a housing crisis and homeless people

    Sometimes you wonder that is how the world actually works ....and housing crisis is just a term used by academics / commentators because in theory that's what we should be having.
    True there have always been cyrcles. However...

    When the multiples of household income needed to get into a lower quartile house are as high as today, it means that raising a deposit has never been so difficult! Also, Back in the day, a household often just had the one income. Now, a second parent has to earn a decent income too - just to afford the house that could be bought with one income - back in yesteryear. The kids end up being brought up by strangers for much of the time. So those figures speak for themselves. The disparity in after tax incomes and wealth is growing.

    I have not seen the figures for the number of occupants per average fourth quartile dwelling - but I would not be surprised if it has been growing over the years. I wonder how many garages are being used for housing people in Auckland...

  9. #474
    Veteran novice
    Join Date
    Jun 2007
    Location
    , , .
    Posts
    6,655

    Default

    Quite right, Bj. And it's not just the "one income" bit that's changed.There's been a huge shift in the definition of "family" - housing policy needs to take account of this, somehow. Governments and society generally are a long way from solutions to this problem.

  10. #475
    An Awesome Cool Cat winner69's Avatar
    Join Date
    Jun 2001
    Location
    , , .
    Posts
    24,740

    Default

    Interesting

    http://www.sra.co.nz/pdf/HousingFallacyAug17.pdf


    I make no comment
    “In a roaring bull market, knowledge is superfluous and experience is a handicap.”

    –Benjamin Graham”

  11. #476
    Senior Member
    Join Date
    Dec 2001
    Location
    Wellington, , New Zealand.
    Posts
    964

    Default

    Quote Originally Posted by macduffy View Post
    Quite right, Bj. And it's not just the "one income" bit that's changed.There's been a huge shift in the definition of "family" - housing policy needs to take account of this, somehow. Governments and society generally are a long way from solutions to this problem.
    What sort of changes were you thinking of? Census stats on household composition have not changed much since the 2001 census.

    Most households are one family, but nearly a quarter are one person (thus one income) households.

  12. #477
    Advanced Member
    Join Date
    Aug 2012
    Posts
    1,837

    Default

    Quote Originally Posted by winner69 View Post
    What I have taken from your link to the "Housing Fallacy" pdf...is that the increase in cost of purchasing land and building has far outstripped the increase in incomes. Consequently the number of houses being built is in equilibrium to what we can afford. As the population is increasing that means that the number of occupants per dewelling in recent years has increased. Ergo, for the poorest people in Auckland, the consequence of this state of affairs is that there is overcrowding and a deterioration in well-being. Exactly what has been widely reported...

  13. #478
    Senior Member
    Join Date
    Dec 2001
    Location
    Wellington, , New Zealand.
    Posts
    964

    Default

    Quote Originally Posted by Bjauck View Post
    ..... As the population is increasing that means that the number of occupants per dewelling in recent years has increased. Ergo, for the poorest people in Auckland, the consequence of this state of affairs is that there is overcrowding and a deterioration in well-being. Exactly what has been widely reported...
    Occupants per dwelling have increased? Not according to the last census, though it may change in next year's census.

    According to Stats:

    Most households consist of one or two people
    Households with one or two usual residents made up over half of New Zealand households, at 57.0 percent. Households with three or four usual residents were not as common, at 16.4 percent and 15.2 percent, respectively. Households with six or more usual residents made up just 4.5 percent of households. There was little change since 2001.

  14. #479
    Advanced Member
    Join Date
    Aug 2012
    Posts
    1,837

    Default

    Quote Originally Posted by artemis View Post
    What sort of changes were you thinking of? Census stats on household composition have not changed much since the 2001 census.

    Most households are one family, but nearly a quarter are one person (thus one income) households.
    Many of those one person households I imagine are older widows/windowers many of whom have owned property for many years, perhaps mortgage free now. An asset rich, cash and income poor situation for many perhaps.

    It would be interesting to see stats on the cheapest quartile of the property market. I imagine that is where you may see many overcrowded poor households plus the poorer pensioners. Many of the single person widowed household are likely to be in the traditional Kiwi single dwelling section property, that was often the kiwi norm decades ago. Also the smart retirement village units would have lots of single person households. These days our dear leaders have been telling young couples to buy a sardine tin apartment as that is what their policies have helped produce as the affordable option.
    Last edited by Bjauck; 31-08-2017 at 01:50 PM.

  15. #480
    Advanced Member
    Join Date
    Aug 2012
    Posts
    1,837

    Default

    Quote Originally Posted by artemis View Post
    Occupants per dwelling have increased? Not according to the last census, though it may change in next year's census.

    According to Stats:

    Most households consist of one or two people
    Households with one or two usual residents made up over half of New Zealand households, at 57.0 percent. Households with three or four usual residents were not as common, at 16.4 percent and 15.2 percent, respectively. Households with six or more usual residents made up just 4.5 percent of households. There was little change since 2001.
    Is that NZ wide not just for Auckland?
    An increase in single older people living alone? What about the poorest quartile of households and properties. I would be interested how that compares with the change in number of occupants per dwelling for the top quartile of house values. I would not be surprised to see an increasing divergence as wealth levels widen....
    Last edited by Bjauck; 31-08-2017 at 01:57 PM.

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
  •