From 1 July 2021, asset thresholds for Residential Care Subsidy are as follows:
$239,930 for a single or widowed person in care
$239,930 for a couple with both partners in care
$131,391 for a couple with one partner in care (house and car remain exempt). Couples can choose to be tested under the $239,930 threshold, but the house and car will not be exempt.
Asset thresholds increase on July 1st every year.
It is quite ridiculous to have only a $108k approx. addition in the asset test for those in a couple who don’t own a house. With houses these days often worth well in excess of $1m, does this further encourage retired couples to remain in large expensive dwellings as a store of wealth? All part of the inbuilt NZ fiscal efficiency (bias) of building up wealth, for those that can afford it, in residential property I guess.
News tonight says new house inflation is running at 17%.. It is only a matter of time that existing house prices start to increase to reflect the values of houses..
News tonight says new house inflation is running at 17%.. It is only a matter of time that existing house prices start to increase to reflect the values of houses..
Exactly! No need to worry about dropping house prices when their is rampant inflation in the construction industry.
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Exactly! No need to worry about dropping house prices when their is rampant inflation in the construction industry.
House prices have two components ...Land Value and Improvement Value ...So if construction costs are adding to improvement value part then Land values can still be going down to compensate for overall affordability issues due to higher rates ?
House prices have two components ...Land Value and Improvement Value ...So if construction costs are adding to improvement value part then Land values can still be going down to compensate for overall affordability issues due to higher rates ?
Are land values really going down? It's the one thing they are not making a lot more of.
Exactly! No need to worry about dropping house prices when their is rampant inflation in the construction industry.
Incorrect assumption - biggest impact on property prices is the exorbitant price of land which is falling.
Friend just bought a 500 m2 piece of dirt in Auckland Manukau district for $700k which has a CV of $940k (July 2021) and which had a price tag of $1m beginning of the year.
And there are developers and land bankers desperately trying to get rid of land and sections all around the place.
The number of advertisements of mortgagee sale grow month by month.
Are land values really going down? It's the one thing they are not making a lot more of.
Friend just bought a 500 m2 piece of dirt in Auckland Manukau district for $700k which has a CV of $940k (July 2021) and which had a price tag of $1m beginning of the year.
And there's plenty more sections being released in that area!
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Originally Posted by 777
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